Abu Dhabi Aviation
Regardless of what bank you deal with over there.
Join Date: Apr 2005
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I'm hoping to get hired and go over there anyway for my own reasons but that "tax free" deal dangling in front of everything doesn't really make up for lots of other things. That's what employers are hoping for but there are lots of things you have to give up for tax free that aren't worth it when you add it all up.
I'm just asking about which bank account most use because there's no sense in throwing away those tax free $$ if I can avoid it
I'm just asking about which bank account most use because there's no sense in throwing away those tax free $$ if I can avoid it
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HSBC worked for me. And you get a ABM card that works anywhere in the world.
So you can leave your money in the bank in UAE and withdraw it as you need it no matter where you are in the world.
So you can leave your money in the bank in UAE and withdraw it as you need it no matter where you are in the world.
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I don't see how, as a US citizen, you'll be exempt from US tax. Regardless of what country your working in or what company is paying you, unless you spend at least 330 days outside of the country, you don't qualify for tax free status. If you know something I don't know, let me know (because I want tax free status without staying out of the country)!
I'd hate to get paid in a local bank for a few years and then have the IRS come down on you and nail you for back taxes.
I'd hate to get paid in a local bank for a few years and then have the IRS come down on you and nail you for back taxes.
Join Date: Apr 2005
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aclark79, IRS tax exemption cleared up just a little more
The more I research the issue the more I see how easy it's going to be to get the tax exclusion. The IRS rules say you do it by completing one of these two ways and it doesn't have to be both. One way is called the Physical Presence Test which is basically staying out of the country for 330 days out of a 12 month period. It doesn't have to be in a row, you can return to the USA for a few days, and there are other little issues to watch out for.
The other way is called the Bona Fide Residence Test which is establishing a legal residence outside of the USA during at least one entire tax year, not that you have to stay out of the states for that tax year. It even gives examples and says you can come back to the USA for short trips :
During the period of bona fide residence in a foreign country, you can leave the country for brief or temporary trips back to the United States or elsewhere for vacation or business. To keep your status as a bona fide resident of a foreign country, you must have a clear intention of returning from such trips, without unreasonable delay, to your foreign residence or to a new bona fide residence in another foreign country.
Of course don't take my word for it I'm just researching the issue since there is so much bad information out there but the more I talk to pilots who are actually doing it the more intriguing it makes it for me . I'm not a tax specialist so I'll be talking with experts tomorrow so going over to UAE is getting better by the minute.
To all the negative posters, I appreciate the comments because it keeps us all with our eyes open but also remember everybody does it for their own reasons and not everybody does it exclusively for the tax free money. My main reasons have nothing to do with money so just be happy with your choices because up to now I'm happy with mine.
The other way is called the Bona Fide Residence Test which is establishing a legal residence outside of the USA during at least one entire tax year, not that you have to stay out of the states for that tax year. It even gives examples and says you can come back to the USA for short trips :
During the period of bona fide residence in a foreign country, you can leave the country for brief or temporary trips back to the United States or elsewhere for vacation or business. To keep your status as a bona fide resident of a foreign country, you must have a clear intention of returning from such trips, without unreasonable delay, to your foreign residence or to a new bona fide residence in another foreign country.
Of course don't take my word for it I'm just researching the issue since there is so much bad information out there but the more I talk to pilots who are actually doing it the more intriguing it makes it for me . I'm not a tax specialist so I'll be talking with experts tomorrow so going over to UAE is getting better by the minute.
To all the negative posters, I appreciate the comments because it keeps us all with our eyes open but also remember everybody does it for their own reasons and not everybody does it exclusively for the tax free money. My main reasons have nothing to do with money so just be happy with your choices because up to now I'm happy with mine.
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If you depend on the residence visa that ADA will acquire on your behalf as your Bona Fide resident status and if you are then audited (remember nothing matters if you do not get selected for audited) you will lose.
There is a lot more to establishing the Bona Fide resident status then just a visa. If you live in quarters provided by ADA, that fact alone will most likely disqualify you for Bona Fide resident status. You must be a resident! You must establish the fact that this is your new home, not a place that you come to just to work. ADA is paying your airfare back and forth, ADA is providing your living arrangments. You pay no local taxes, you don't even pay ustility bills. Your family does not live with you. You leave every 6 or 8 weeks and return to a place where you do have a residence. Sorry, but if your audited you will not qualify.
There are specific case laws that discuss this very matter and in every case the courts found for the IRS. Of course if you never get audited, then you are home free.
There is a lot more to establishing the Bona Fide resident status then just a visa. If you live in quarters provided by ADA, that fact alone will most likely disqualify you for Bona Fide resident status. You must be a resident! You must establish the fact that this is your new home, not a place that you come to just to work. ADA is paying your airfare back and forth, ADA is providing your living arrangments. You pay no local taxes, you don't even pay ustility bills. Your family does not live with you. You leave every 6 or 8 weeks and return to a place where you do have a residence. Sorry, but if your audited you will not qualify.
There are specific case laws that discuss this very matter and in every case the courts found for the IRS. Of course if you never get audited, then you are home free.
Join Date: Apr 2005
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You're assuming too many things and nobody here has even mentioned any visa. In fact the IRS rules specifically say they don't care if you have a visa for that country or not, that's not their concern. I'm not going to get into a discussion about this because I'm sure even the IRS employees don't agree on some things.
Consult a tax specialist for your specific case, that's what I'm going to do.
Consult a tax specialist for your specific case, that's what I'm going to do.
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135 needs to chill
I agree - - an inquiring mind is always good - but trying to get all details is overkill - every oversees job has its pros and cons - you need to make the most out of it for you - if you are not up for this - this might be not for you
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I replied but erased it before submitting it because I find this so interesting.
On what are you basing your comment : if you are not up for this - this might be not for you ?
On what are you basing your comment : if you are not up for this - this might be not for you ?
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I am not trying to talk you out of going. I worked there for 7 years and enjoyed most of it. However, it is not for everyone. If you just go in and fly your aircraft and go back to the camp or wherever your living at the end of your shift, you will probably do all right.
Never forget that you are in a foreign country subject to foreign laws. Never forget that the US Embassy is NOT there to help you if you get in trouble.
I hope you get the job and I hope that you have a great experience. Once the ex-pat fever takes hold it is real hard to return to the US, at least it is for me....
Never forget that you are in a foreign country subject to foreign laws. Never forget that the US Embassy is NOT there to help you if you get in trouble.
I hope you get the job and I hope that you have a great experience. Once the ex-pat fever takes hold it is real hard to return to the US, at least it is for me....
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I was actually talking about oilpilot in Houston. I could go out and just see what happens but I like to be prepared and if that means asking questions then so be it. I don't see anything wrong with getting as much information as I can.
Like I've said before I get lots of PMs from pilots who are on the sidelines and aren't posting but are following this thread. They're all in the same position as I am and we all appreciate the help the pilots experienced in this topic are giving us here
Like I've said before I get lots of PMs from pilots who are on the sidelines and aren't posting but are following this thread. They're all in the same position as I am and we all appreciate the help the pilots experienced in this topic are giving us here
Look 135, none of us here is trying to stop you from going.
Many others have gone before you, it is not necessary to make a national crisis out of it like you are doing.
IRS laws are fairly simple,
1) Stay out of the States for at least 330 days in one year and you do not have to pay taxes on your income (or at least up to a certain amount).
2) If you move your residence OUT of the USA you do not need to pay income taxes at all, but do not get SS contributions either.
We understand you are excited because you have been offered a job during the latest round of interviews (at least you make it sound like it) and we do not want to crash your party.
So go, be our point man, observe and report.
If money is not you main reason, then we do not need to know anymore.
Have fun, BYE.
Many others have gone before you, it is not necessary to make a national crisis out of it like you are doing.
IRS laws are fairly simple,
1) Stay out of the States for at least 330 days in one year and you do not have to pay taxes on your income (or at least up to a certain amount).
2) If you move your residence OUT of the USA you do not need to pay income taxes at all, but do not get SS contributions either.
We understand you are excited because you have been offered a job during the latest round of interviews (at least you make it sound like it) and we do not want to crash your party.
So go, be our point man, observe and report.
If money is not you main reason, then we do not need to know anymore.
Have fun, BYE.
Last edited by tottigol; 8th Jun 2010 at 17:58. Reason: spelling
Join Date: Apr 2005
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This is so amusing!! People with no clue about who I am or where I've been or what I've done are telling me I'm not cut out for this. It's pretty funny how some people are. They even say I'm asking too much and trying to control everything by simply asking questions but THEY are such control freaks that they have to be in control and tell me what to do instead of just ignoring my posts. Hmm? The old pot-kettle sound familiar? Reading what some of you post here is more fun than flying !
What's really funny is for every hater message I get, I also get 5 or 6 encouragement PMs from others. I watch the view count on this thread every day and there are lots of people interested in what's going on but not complaining or getting their panties in a wad. I guess they can see it's a matter of opinions and they keep theirs to themselves. My parents told me at a young age that if I'm not asked my opinion then don't give it. If I'm asked a question then answer the question and don't personalize it. That if I don't have something good to say then don't say anything. Live and let live is my motto. I love my parents for that.
What's really funny is for every hater message I get, I also get 5 or 6 encouragement PMs from others. I watch the view count on this thread every day and there are lots of people interested in what's going on but not complaining or getting their panties in a wad. I guess they can see it's a matter of opinions and they keep theirs to themselves. My parents told me at a young age that if I'm not asked my opinion then don't give it. If I'm asked a question then answer the question and don't personalize it. That if I don't have something good to say then don't say anything. Live and let live is my motto. I love my parents for that.
Last edited by Pilot135pd; 8th Jun 2010 at 20:10. Reason: spelling
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well 135
Regardless of what "others" are saying or meaning. Its all about preparation.
In my opinion. The better prepared, the better the "flight" is going to be.
Better to get the know`s and how`s, now, when you`re in the position to do it, than sitting in the middle of it, when the s....hits the fan, not able to do anything.
best reg.
spitfiremk9
Regardless of what "others" are saying or meaning. Its all about preparation.
In my opinion. The better prepared, the better the "flight" is going to be.
Better to get the know`s and how`s, now, when you`re in the position to do it, than sitting in the middle of it, when the s....hits the fan, not able to do anything.
best reg.
spitfiremk9
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135 for a while I was hoping you got into ADA, now with comments you
have made in recent posts I wonder why anyone would employ you.
Your true colours and personality are showing now.
Good luck, your parents can be well pleased.
have made in recent posts I wonder why anyone would employ you.
Your true colours and personality are showing now.
Good luck, your parents can be well pleased.
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Night beetle :
1st - I'm glad you aren't the person hiring
2nd - I went and checked out some of your other posts on other threads to see if you're always negative or just here. Sorry to see it's not only here.
3rd - I'm just asking questions. That's what a forum is for, to exchange ideas on a specific subject. If you don't want to answer what I'm asking then feel free to ignore me. Now if you just have to be a control freak and tell me how you want me to act then prepare yourself for a reply. Don't confuse nice with pushover.
4th - I'll stop now because my true colors are to try as much as I can to be positive and a better person every day no matter how many like you try to make me slip and fall.
Be safe and have a great day!
1st - I'm glad you aren't the person hiring
2nd - I went and checked out some of your other posts on other threads to see if you're always negative or just here. Sorry to see it's not only here.
3rd - I'm just asking questions. That's what a forum is for, to exchange ideas on a specific subject. If you don't want to answer what I'm asking then feel free to ignore me. Now if you just have to be a control freak and tell me how you want me to act then prepare yourself for a reply. Don't confuse nice with pushover.
4th - I'll stop now because my true colors are to try as much as I can to be positive and a better person every day no matter how many like you try to make me slip and fall.
Be safe and have a great day!