perthbound

The UAE will begin implementing the stanards of joint disclosures and the exchange of information for tax purposess set out by the G20 and the organization for Economic cooperationand development,

This follows the UAE cabinets decision for the ministry of Finance to co ordinate with various government authoritiesto collect financial information in order to implement exchange informationfor tax purposes,

Charles Lawford, an international tax attorney, believes that the UAE is eager to be seen as coperating with Foreign tax collectors in order to build up a detailed data base of what ex pats earn.
He also stated that many goverments are keen to follow the US lead in not taxing the first $100K but taxing anything above that figure,
He believes Italy will be the first to implement this law and that Australia and Ireland may follow in the near future,
Brazil is eager to use the information to find the assets of its citizens abroad, many Brazilians and south americans have purchased proerty in Florida and are now at risk.

source : google UAE to implement joint disclosure

sluggums

...and the hits just keep on comin'.

Although some countries (America only at present?) are already implementing this, if it becomes more widespread then recruitment will go from catastrophicly bad to galacticaly bad.

While it's the bottom line that's important, regardless of tax, many people are swayed by the 'tax free salary' of the ME.

BigGeordie

Well, lots of Americans came a few years back despite having to pay tax back home and it's not as if they all went back as soon as they could get a job at home is it?

Oh, wait a minute.....

glofish

Great news, not!

For all those outside company accommodation:
Be aware that some countries consider the housing allowance as income, because it appears on the payslip. You can try to appeal, but to no avail.
This will bump you up to over 100'000$ quite rapidly .......

littlejet

Earnings of pilots at ek are published at their website...

fliion

As a matter of interest which countries consider it income & reject appeals?

IRS housing allowance Dubai is $57,174 under their 2555 code - considered non-income

TOGA!

Never take financial or tax advice from a pilot. fliion has the right idea for Yanks.

Whairdhugo

For the yanks...

Company provided housing is considered income based upon fair market value which is an insane number thanks to prices here. Any housing allowance appearing in the payslip is offset by the aforementioned 2555 housing allowance which is on the list of 20ish some odd cities that have higher than standard deductions. Having been in and out of accommodations the taxable number has been over 100k every year.

ironbutt57

and thanks to FATCA, our bank account details go straight to the IRS

Jet II

As far as I am aware only the US currently tax you on your worldwide income and unless other countries decide to go down that route (are there any?) then this proposal will have no effect on most employees at all.

Kapitanleutnant

Jet II

The mighty sovereign nation of Eritrea!!! :-)

The only 2 in the world

JuniorMan

Does it not say in the original posting that Italy, Australia, and Ireland are considering going that route?

Jet II

I think that Italy and Ireland would struggle as under EU rules if you are considered tax resident in any other EU country you should be taxed in the same way as nationals of that country under the same conditions.

So unless they can bring in rules that treat people resident in countries outside of the EU in a totally different way to those resident within the EU, then I fail to see how any change could be implemented.

perthbound

This is not a US IRS issue, it is an issue for everyone else.

This is the first step in the rest of the world moving towards a similar system to how the US currently taxes its expats.

This step is the data collection point and therefore we are probably a few years from a common worldwide standard.

It is coming but just not this year.

The data that is available is specific to each pilot IE your home country will be able to find out how much a particular expat is earning down to the last penny.

Someone stated that this is available on the EK website, well yes and no.
What is there is a general figure and not exactly what the individual earns.

Just beaware of this as the years roll on as they do here inthe sandpit.

Jet II

I think you will find there are more calls for the US to change to the system that the rest of the world uses rather than the other way around - after all the system was only imposed to stop draft dodgers during the Civil War. Every year more and more US Citizens renounce their citizenship to get away from the demands of the IRS.

As an aside there is a growing demand in the US for a similar change in Corporate Taxation away from worldwide earnings to Territorial taxation - President Elect Trump has indicated he will look at that issue.

WB1900

Dear Readers,


There is another issue with the taxation


some countries go further than to put a tax on your income


1. if u receive the housing allowance it can be argumented as income
some countries would refer this as standard taxable income therefor a fix percentage rate, some will count as income.
2. if u are in company accomodation, this is considered as a taxation benefit there the can or will take this in a fixed rate to the percent what u would pay of your in come for e.g. u pay 25% of your basic + flight, they will add 5% fixed for the housing, which will give a total of 30% of the income.


3. same game for your health, loss of LIC or pension fund, as these are all company provided benefits.


4. taxation of your end of service, as this will count as income as well, sometimes immediately, sometimes after a year after pay out.


so for some countries u can consider every company paid income as a taxable income in the one or the other way.


it mostly depends if you are taxable if u work and live abroad at all.


cheers

BANANASBANANAS

I think as Europe, especially, sees its welfare bill continue to increase exponentially over the next decades, there will be a scramble by EC countries to extract as much tax income from expatriates as possible.

Eventually, market forces will dictate an appropriate rise in expatriate gross salary but, for those caught in the transition period (which could be many years), I think lifestyle could take a major hit.

Knocked Forward

Having read the reports relating to the implementation of this joint disclosure I can't find any reference to Charles Lawford's comments. While I certainly wouldn't discount those governments taking the same line as the Americans, could you provide a little more information on this tax attorney or point the way to a source document.