Employer says I have to pay income tax
#1
Just Joined
Thread Starter
Joined: Dec 2013
Posts: 13
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!
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!
#2
Lost in BE Cyberspace
Joined: Nov 2012
Location: bute
Posts: 9,740
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 !
#3
Just Joined
Thread Starter
Joined: Dec 2013
Posts: 13
Re: Employer says I have to pay income tax
Hi,
Sorry, I should have mentioned, I'm Canadian.
thanks
Sorry, I should have mentioned, I'm Canadian.
thanks
#4
Forum Regular
Joined: Nov 2010
Location: Riyadh
Posts: 127
Re: Employer says I have to pay income tax
Erm this is Britishexpats ya knoooo
#5
Just Joined
Thread Starter
Joined: Dec 2013
Posts: 13
Re: Employer says I have to pay income tax
The Queen's still our leader, too
Help a brother out?
Help a brother out?
#6
BE Enthusiast
Joined: Oct 2010
Posts: 547
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.