Just because the UAE is supposedly a tax-free jurisdiction does not mean that expat residents can forget about paying income tax. Many new expats who land in the country breathe a sigh of relief after leaving their heavily taxed home country, while failing to realise they may still have an ongoing tax liability. The tax authorities can still catch up with you, particularly if you have earnings back home, such as rental income, dividend payments, savings interest and royalties, or capital growth on stocks or property. Most countries will want to continue taxing those sources of wealth no matter how long you are living overseas. Fiona McClafferty, a senior manager at accountancy firm Deloitte Private, Middle East, says the biggest tax mistake UAE-based expats make is failing to realise they may still have a tax exposure or reporting obligation in their home country. “This could either be by virtue of holding real estate or investments there, or being tax resident without realising it.” Tax rules can change from year to year and so it is important to keep up to date with the rules in the relevant jurisdictions, she adds.
Are you liable for Income tax while living in the UAE?
08 Oct, 2017 | Posted by Admin