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Taxation UK - Dubai

Taxation UK - Dubai

Old Mar 7th 2009, 6:04 am
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Joined: Mar 2009
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bighase is an unknown quantity at this point
Default Taxation UK - Dubai

Could somebody clairfy this matter for me please.

I'm a Hungarian national, having a Hungarian passport and I have a
permanent residential address in Hungary. I'm working for an English
company in the UK and I have a permanent residential address in the
UK, my salary is paid in UK Pounds into a UK bank account (I have an
NI number as well and paying National Insurance). Between UK and
Hungary there is a double taxation avoidance agreement.

This company does outsourcing activities. So as a Technical Manager
they outsourced me from July 2008 permanently to Dubai (still working
for a UK company) and I'm resident in Dubai from 28.10.2008 and got
the NT status from HMRC on the 20th of August 2008. Because I'm far
from the UK more then 183 days in a year.

I don't have any income in Hungary either in Dubai (UAE). Not having
any flat rents or other income sources in the UK, except my salary.

Could you please help me to find out, or advise where should I pay
tax, in case I have to.

PS: I've read the double taxation agreement
(http://www.hmrc.gov.uk/manuals/dtmanual/DT9250+.htm) and couldn't
find the suitable for me.
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Old Mar 9th 2009, 6:01 pm
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Joined: Feb 2004
Posts: 182
kazic is just really nicekazic is just really nicekazic is just really nicekazic is just really nicekazic is just really nicekazic is just really nicekazic is just really nicekazic is just really nice
Default Re: Taxation UK - Dubai

You have two problems:
a) avoiding taxes in the UK
b) avoiding taxes in Hungary

a) Avoiding taxes in the UK
You will not have to pay any tax in the UK if you both stay abroad (not only in the UAE but anywhere else) until 5 Apr 2010 and if you are employed until this date. Please, be aware that you need to comply with both of these conditions.

This is only of importance if you intend to return to UK. If you would go to some other country, then just forget UK and its taxation.

b) Avoiding taxes in Hungary:
I do not know Hungarian tax rules but I assume that they are similar to German. In case of Germany, you would not need to pay any tax in Germany (as German national) if you abandon residency in Germany. That means, you can not stay in Germany for more than 90 days, you do not have permanent home in Germany etc...

Your problem is that you are still focused on double taxation UK-Hungary.
It was your past life. This double taxation is of no importance anymore. You have now to deal with two separate problems which I described as a) and b)
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