Millhouse

UAE: President establishes Federal Tax Authority

Abu Dhabi: President His Highness Shaikh Khalifa Bin Zayed Al Nahyan issued a decree on Monday to set up a new authority to collect data, information and statistics related to federal taxes.

The Federal Tax Authority (FTA) will be responsible for setting up and maintaining records on taxpayers and on taxes paid. It will also issue necessary guidelines and clarifications to taxpayers on matters related to federal taxes and related fines.

UAE: President establishes Federal Tax Authority | Zawya

Interesting times ahead.

mission

oh jeeze

Millhouse

I would love to see the effect of income tax here.

shiva

DXBtoDOH

Most will grumble but accept it. It'll start out quite low, a few %. Take a decade or two to get up to 10%. How many of you would quit and leave Dubai if you had to pay 10% income tax? Not many, I'd venture.

scrubbedexpat141

I'd be happy to stay if I got a 10% pay rise.

Millhouse

Exactly. Most will suck it up.

I wonder though, if it would have an affect on rents and general costs. Although looking at Singapore, I doubt it. They pay tax, and yet everything is at least as expensive as Dubai (although the quality is much higher).

DXBtoDOH

I was weighing a potential move to Singapore.

Figured out that not owning a car and the expense associated with it went some distance towards the tax.

QUOTE=Millhouse;12085124]Exactly. Most will suck it up.

I wonder though, if it would have an affect on rents and general costs. Although looking at Singapore, I doubt it. They pay tax, and yet everything is at least as expensive as Dubai (although the quality is much higher).[/QUOTE]

Singapore and Dubai are different markets. Not so many middle income expats in Singapore - those roles are all occupied by locals. They live in HDB apartments, don't have to pay for schools, so it's not difficult for them.

In Dubai there's way too many middle income expats who have to pay school fees and expensive rents. A sudden 10% loss of salary due to taxes will definitely hit them. Will that put pressure on rents to go down?

mission

maybe I'm missing something but the article doesn't mention anything about personal taxes...it's talking about corporate taxes...right?

iggle

I would leave UAE if the income tax was above 10%. I'd expect my employer to increase my wage as per the income taxes though. I think thats in my contract, i asked for the clause to be added

scrubbedexpat141

Easy enough to make you redundant and replace

iggle

I'll just join that shite main contractor that worked on Birmingham New Street. They employ a load of mugs.

I'll increase the average IQ by 50 as well, but decrease the average height

Millhouse

that means you are not paid enough right now if 10% is the turning point.

scrubbedexpat141

Boat loads of mugs. More than you can shake a stick at.

Still, I prefer working for a consultancy. It's comfy offices, 5 day weeks and all the public holidays.

weasel decentral

I looked at a role in HK before that had about 8 or 10% tax which the company wasn't paying for me, but once the net figure was working out I didn't really care about the gross figure too much.
However I am sure it would be different if I started with 0% then got a new tax foisted onto me afterwards.