Dubai Forums Dubai Expat Forums Dubai Expat Help Forum

well i am a new entry, i have just signed the contract and i should start a new job in Dubai the 5ht of February
but i would like to have some suggestions regarding my contract, hope someone can help me:
i am employed by an English practice, and i will be paid in British pound on my English bank account, but the practice says that i will be paying tax on this money, and that i will probably be able later to ask for a tax refund, is this the way it works?
can anyone tell me if i will have to pay tax on the money that i will earn while working in Dubai?

any suggestion is appreciated

thanks

Jim

Mmmmmm, most of the expats i know that are on true expat packages get tax and stuff paid for by their Companies. what they get in their hand when working abroad is for them, and them only.

I take it you are only coming out on secondment and not a full time role?

the rules are very clear.

Yes you will be able to claim back UK paid tax deducted from source so long as you meet the criteria with the Inland revenue regarding "time spent out of the country".


Just working outside of the EU for short periods etc does not qualify for "ex pat" status.

ok so summarizing, if i was to have a contract in Dubai and paid in Dubai i would have received the full amount of my gross income, without tax deduction directly from the company
but becouse mine is a permanent contract in the UK in which the company will send me abroad for a short period, i would probably have to pay tax in the UK, it would be eventually down to the inland revenue to decide if i can claim tax refund
is this correct?

well at least they provide accommodation

thanks for the replies

cheers

Jim

I believe that you need to spend at least 9 months in Dubai before you qualify for tax-free status.

here you go from IR Website

Residence

1.2 To be regarded as resident in the UK you must normally be physically present in the country at some time in the tax year. You will always be resident if you are here for 183 days or more in the tax year. There are no exceptions to this. You count the total number of days you spend in the UK - it does not matter if you come and go several times during the year or if you are here for one stay of 183 days or more. If you are here for less than 183 days, you may still be treated as resident for the year under other tests (see Chapter 3, and in particular paragraph 3.3).

ok everything clear thanks!

cheers

Jim