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Tax & Social Charges..???

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Tax & Social Charges..??? Dec 13, 2005
Guys,

My company is paying me relocation allowance...which is subject to tax & social charges. I thought there were no taxes in UAE? Any ideas on that?

Cheers

iceman
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Dec 13, 2005
Sounds like something they made up. Never heard of that. Ask them for a break down of exactly what that is.
Chocoholic
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Dec 13, 2005
Even though you're working in a 'tax-free' country if you're on a US payroll you tend to pay 'hypo' tax.
XRW-147
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Dec 13, 2005
What is 'hypo' tax? (never heard of it)

Well I work for a French company...but I'll be working under a local (Dubai) contract. Although my salary is in US$ and house allowance is in UAE Dirhams...!

Any ideas...will I be paying tax then?
iceman
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Dec 14, 2005
mm interesting, those guys make and implement laws overnight. They dont have elected emmbers who make laws just a shiekh sitting in his porshe office with a cigar and making whatever laws that comes to his mind.
sniper420
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Dec 14, 2005
'Hypo' = hypothetical tax.

If you're an expat on a US payroll you're subject to US taxes. Although most companies will only deduct a 'hypo' amount from your pay and the difference to actual tax due is paid by the company.

I have no idea about French tax system so can't provide any comment for your situation.
XRW-147
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Dec 14, 2005
Cheers Guys...I'll see whatever comes !

Take care
iceman
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