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Employer says I have to pay income tax

Employer says I have to pay income tax

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Old Dec 8th 2013, 11:07 pm
  #1  
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Default Employer says I have to pay income tax

Hi,

I am not sure whether to continue with the multi-level interview process--I am at stage 3 (of 4?) right now.

Any thoughts/advice on the following would be greatly appreciated!

I am married, with 2 children in elementary school and live in North America

The company is a very, very large U.S. multinational. It is a senior manager position responsible for M.E., Africa, Asia. I'd work under a Director.

We haven't discussed salary numbers yet.

My research calculates it at around 425,000AED ($115,000USD). That is only $10,000USD more than I currently make here in my home country. If not taxed, then it's a heck of lot more. Master’s degree in the field and >10 yrs in the field.

HOWEVER, the company has a system which would require me to keep my connection/residency(?) with my home country. They say it is their system of enabling 'mobility' of employees around the world. Something to that extent.

Thus I would still pay the same income tax as I currently do in my home country. They would send my salary to my home country bank every month. I am taxed at just under 40%, so that is a huge chunk (about $40,000USD) which is painful because I won't even be living in my own country or using its services.

Essentially, it seems like I would be moving to Dubai to make only $10,000USD more but have a huge negative disparity in purchasing power due to Dubai's extreme costs of rent and school.

Their response to this is that they will give a housing, schooling, and transportation allowance.

Perhaps I could become a non-resident after X months out of my own country as I had done when I had worked overseas before. I'll have to check if I can be a non-resident if my paychecks are still going to my bank in my home country.

Have you ever hear of a such an arrangement in which they require you to maintain your connection/residency to your home country and thus take the tax off? If this was a small company, I'd be suspicious, but it's one of the biggest U.S. companies.

Any thoughts/advice would be greatly appreciated!

thanks!
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Old Dec 9th 2013, 8:00 am
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Default Re: Employer says I have to pay income tax

US citizens are liable for federal in come tax if they work anywhere on the Planet !
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Old Dec 9th 2013, 9:38 am
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Default Re: Employer says I have to pay income tax

Hi,

Sorry, I should have mentioned, I'm Canadian.


thanks
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Old Dec 9th 2013, 12:17 pm
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Default Re: Employer says I have to pay income tax

Erm this is Britishexpats ya knoooo
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Old Dec 9th 2013, 1:25 pm
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Default Re: Employer says I have to pay income tax

The Queen's still our leader, too




Help a brother out?
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Old Dec 10th 2013, 8:33 am
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Default Re: Employer says I have to pay income tax

My colleague is Canadian. He says you need to apply online for a "Determination of Non Residency", and as long as you pass, you don't pay tax in Canada. We're in a UAE company, though, so no idea how a US company would treat this.
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