Emirates Tax-Free Status Under Threat

[T. Seekay]

Week-old news from the gulf:

"The Federal National (???) Council has urged the UAE to impose value-added taxes, levy duties on road users and introduce fees on international money transfers by expatriates."

Is this aimed exclusively at ex-pats?

And the price of petrol just rose by about 15% last week, too.

The good times could be well and truly over for the crowd at EK. Tax, non-competitive salaries, 90 hour months...

Comments on taxes, inflation, salary-competitiveness?

[SoftTop]

I reckon it would depend on the amount of VAT levied on currency transfers, more than anything else. If they set the VAT level at, or below, the commission rate for currency transfers into the UAE, that would make it more attractive- and workable - than having a salary paid outside the UAE and using your credit card to fund living costs. Then you'd have the cost of currency transactions to worry about (typically 2.5%) and the buyer/seller differential on currency markets (can vary wildly between 4% to 15% on most "stable" currencies).

It would also depend on whether your employer would be willing to pay you in another country/currency. You'd have to have your credit cards issued in that country too.

Judging by the article in Gulf News the intention is to start weaning the UAE governments off oil revenues as the sole means of supporting a national economy.

Welcome to the real world.

[T. Seekay]

My impression is the VAT would be applied broadly to the economy, not just to currency transfers, as you seem to be saying.

I guess the ex-pats comprise a large part of the population of the UAE so it isn't so much of an issue if the cash-transfer charge is only levied on them and not the locals also. But it seems a bit discriminatory to me. Can't see it happening that way elsewhere.

It will, in conjunction with the exchange rates outlook, definitely give cause for any professional to think a little longer before moving to UAE.

[ferris]

But it seems a bit discriminatory to me

Very funny, made me chuckle.

Noticed an article in British newspaper (N>O>T>W>) about testing commmencing of hydrogen fuel cell vehicles ie. they have been built and are being test driven by the public.

It's simple about expat remuneration. At the end of the day, you have to receive enough in your kick to make it worth it. Or else you leave. Supply and demand. Would certainly dampen the economy, though.

[EK_Dantos]

If they impose taxes, they will lose alot of foreign employees. Thats one of the reasons I want to go down there. I guess they are really becoming westernized now!

[BigGeordie]

Wasn't this tried in Saudi Arabia about 15 years ago as a very short lived experiment? I seem to recall that taxes were quickly abolished when the entire ex-pat community was ready to up sticks and leave, but I could be wrong.

[EK_Dantos]

Well I have to be honest, flying in the middle east looked like a great adventure, but ever since I have come onto this forum, I have heard one bad thing after another about Emirates and its a shame since flying for them is the reason I pursued this career. Doesn't anyone have anything nice to tell me about Dubai and Emirates? :(

[moremilk]

Honestly Emirates is a great airline to work for most of the time.It does have its bad points but really the good points far outweigh the bad ones.Some nice routes,good money and good job security and most of the crew I fly with are very positive.Yeah some of the crew are not happy here but 90% are which is why we have such a small turnover of staff compared to many other airlines.Dubai is in a desert and really it does get very hot in the summer but everybody knows that before coming here.But if u want to have a great social life you can because there is a lot of activities available and also sports.Not just golf.When companies are doing well some people just like to pull them down,sad but true.Hope to see you in Scarletts sometime.

[EK_Dantos]

I've been told one of the questions they ask you is if you would consider staying in Dubai till you retire, how do they expect someone to stay in the same place, stuck in a compound because they can;t buy their own home for over 30 years. HAs anyone even tried doing this?

[bus canuck]

Haven't exactly done a lot of research into this, have you?

[JoeCo]

EK-Dantos

Hard to believe you got into this industry JUST to fly for Emirates. Emirates is a good airline, but it's not the end all and be all. Most people get into aviation because they love it, not because of a "perfect" airline. ....Anyhow, to each there own. I think that most of the unhappiness has something to do with the teething problems that Emirates are experiencing, just as any oganisation would feel if they were expanding as rapidly as Emirates is. As for your point on retirement, Emirates supplies your accomodations so having to deal with home ownership issues are essentially a non-issue. If you're happy with that, I suppose is the real question. At least with Emirates you will be involved with an airline that is expanding and proving to be successful, unlike back in Canada where Air Canada is looking for every trick in the book just to stay afloat. And if that is not the issue, then I guess it's -40C or +40C, .......your choice.

Joe

[EK_Dantos]

Well I did get into it because of flying, but a pursued it because I thought I could have a great career with them. I'm from Canada, and currently everything here as far as jobs is crap, flying is crap, pay is crap and no job security at all. One moment you're flying a 757 next your in home depot! It sucks here! So my goal is of course Emirates, I just want to get out of Canada ASAP!

[chinny]

:{ the whipper snapper's having a go on the other thread too:yuk:

[EK_Dantos]

In case some of you were wondering

A paste from the Word Detective:

"Whippersnapper" is a somewhat archaic term, rarely heard today outside of movies, and then usually from the mouth of a character portrayed as chronologically-challenged and hopelessly old-fashioned to boot. A "whippersnapper" is an impertinent young person, usually a young man, whose lack of proper respect for the older generation is matched only by his laziness and lack of motivation to better himself.

Uhhhh right thats smart.... not very accurate though!

[ernestkgann]

Dude,

I'm sorry to appear a little condescending here but as the fella on the other forum said review your comments in ten years time and I bet you're probably beginning to get about as cynical as we have all become with flying for any airline these days.
As you have said you live to fly, we on the other hand fly to live, and so it will be with you in ten years time when you have the hours to apply for Emirates. Unfortunately then you will be number 2000 and something on the seniority list but you will have realised your dream of working for the number 2 company in the world and the excellent tax free salary offered by the company.

By the way which Emirates pilots were you talking with?

[desert_knight]

Gulf News reports today that proposal to impose VAT is scrapped.

:D

I was in Saudia when income tax was announced back in the eighties.....lasted about 2 days until they realised expats would leave...

[halas]

So now petrol is CAN$0.56c a litre in the UAE.

What do you expect when oil has hit a thirteen year high of US$39 a barrel.

halas

[MD11Flyer]

Wow thats still pretty good. In Toronto/Mississauga, Canada it was at 83.8CDN cents/litre. I got 17.9 litres for 15 bucks, its terrible, there was noone at the gas stations.. well except for me cause I was running on empty

[AirNoServicesAustralia]

Rise in Petrol prices as Halas mentioned is understandable considering the price of oil, and the fact it was and still is dirt cheap to fill your tank here.

You will read bad things about living in the sand pit and those negatives do exist, but my opinion is that it is all dependant on your attitude. You can come here and see your glass as half empty all the time eg. bitch about the driving, the heat, the employment laws, the exchange rate, or you can see your glass as half full eg. tax free pay, living costs paid for, great social life, plethora of available girls here for a good time, and great weather 8 months of the year. I see my glass as well over half full, and as such I love it here, but everyone has to make that judgement themselves.

BTW I can't see tax being introduced here for a very long time as firstly it goes against Islamic beliefs, and secondly as was mentioned big numbers of expats would head for the hills, and whatever anyone says, this place needs Western expats, and will do for at least another couple of decades.

[CAYNINE]

4 holer..... please please!!!!

[4HolerPoler]

You called?

I feel your pain CAYNINE but my job as a mod requires decorum and patience. Even to the extent of listening to the Canucks prattle on about the price of gas back home and others weedle on about the Oxford Dictionary's definition of the term "whippersnapper." Amongst others. This on a thread titled "Emirates Tax-Free Status Under Threat."

This forum is yours - use it. Sure if someone like EK_Dantos stirs up a hornet's nest then I'll step in but otherwise you're going to have to take the good with the bad.

4HP

[Left Coaster]

"Prattle" is it? Next thing you'll be calling us "Bloody Colonials"!

[moremilk]

Anyone for gin n' tonics in Boudoir or grab a hostie and get some tax free FREE bubbly.