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-   -   Emirates now not tax free?!?!?! (https://www.pprune.org/terms-endearment/456336-emirates-now-not-tax-free.html)

zerotohero 3rd Jul 2011 11:28

Emirates now not tax free?!?!?!
 
Looking on Pilots Jobs Network today it states from the 26th June that the salary in no longer tax free?

Any info on this from people just joined? I can honestly say that that 100% removes me from ever thinking about going there now, it was a stretch the live in the sand before but the package was ok and a fallback plan for me,,, now paying tax's on it whats the point?

gyni 3rd Jul 2011 11:49

Sometimes even PPJN can have the wrong information...

zerotohero 3rd Jul 2011 11:57

They can yes but its a recent update, and theres no smoke without fire goes the old saying

BigGeordie 3rd Jul 2011 12:10

Don't think there is any fire to this one. There certainly isn't any income tax in the UAE and no plans to introduce it- the government is well aware of the impact it would have. Not to say there aren't lots of hidden taxes but what you are paid is what you get. No deductions.:ok:

zerotohero 3rd Jul 2011 12:55

Certainly hope not then, not that I am currently looking to go there but its always a possibility in the future,

for info though taken from the website,,,,, me wonders why it was updated like this so recently?

Capt top 16000 USD Basic (pay scale 30) NO tax free salary anymore - most countries (UK, Germany, Australia canceled their Double taxation agreements) 22/Jun/11
Capt base AED 34410 NO tax free salary anymore
22/Jun/11
FO top 30230 AED NO tax free salary anymore 22/Jun/11
FO base 25271 AED NO tax free salary anymore

BlackandBrown 3rd Jul 2011 13:18

I believe there is a new 5% tax being introduced - I think it's called a housing tax or living tax.

Here it is:

International Adviser :: New 5% housing tax in UAE ‘will add to woes’ in Dubai

JB007 3rd Jul 2011 13:23

From the FlyDubai Thread...


The authorities in Dubai have decided that forms of taxation are a good idea, and along with the electricity and water charges from DEWA, have now introduced a Housing charge which equates to 5% of your rent. This is a considerable amount of money.

Mr Good Cat 3rd Jul 2011 13:39

Before this thread drifts and ends up in a Dubai Haters vs. Dubai Lovers fight, let's clarify a few things:


(1) The housing charge applies to those who rent in Dubai. If you work for EK and you're in Company accommodation it's no issue. However if you take the 'live-out' allowance (or join FlyDubai) then yes, you'll be eligible to pay the 5% charge.

(2) There is NO income tax, which seems to be the issue causing confusion.


Hope this helps. The effect of the the housing charge is softened slightly with the drop in rental costs - so providing you aim for a sensibly priced option and remember to include all CHARGES and BILLS in the equation then there should be no problem.

Do remember though if opting to take the live-out allowance then you have to be prepared for possible increases in utility costs and housing charges etc. Emirates clearly state you CAN NOT opt back in to Company housing at a later date... and at the moment electricity/water charges are rising sharply as reported in the papers.

heavy.airbourne 3rd Jul 2011 17:15

Anyway, as a 'foreigner', you should be very careful to avoid tax traps of your country of origin...:(

Mr Good Cat 3rd Jul 2011 17:46


Anyway, as a 'foreigner', you should be very careful to avoid tax traps of your country of origin...
Great point.

Some countries (particularly the states) will start taxing your income once you start sending home sums exceeding the threshold (think it's $90k per year).

Something to definitely take into account unless you're emigrating for good (e.g. leaving Zimbabwe etc).

HPIC 3rd Jul 2011 18:35


Some countries (particularly the states) will start taxing your income once you start sending home sums exceeding the threshold (think it's $90k per year).
In the case of the US, the amount is $92,900 for 2011...but it is based on your income, not the amount you "send home". If you don't send any of it to the US, but make $142,900 for the year, technically $50k of it is taxable(at the 142.9k tax rate). Many non-US companies do not report to the IRS the amount you are paid as a US citizen...but if you lie about it, and get caught, you are subject to large fines and/or prison time.

EK380 3rd Jul 2011 19:10

The US Tax thing is correct... However I never understood why you have to pay tax to your home country when you don't benefit from it and don't live there?! Pay and don't get anything into return... Pay tax for a green card, no thank you!

BTW: this comes from a European citizen who used to pay more than 50% tax. At least we got good health care, free schooling etc in return!
In Dubai more than 10 years and nothing paying any direct income tax. Even today! Main reason to be here!

Yearly tax free salary without including schooling, accommodation, provident fund; $190.000 / 135.000€. That is for a training position and not including a recent 14 week ($30.000 / 20000€) bonus.

Northbeach 3rd Jul 2011 20:06

HPIC not true at all - is it?
 

..but if you lie about it, and get caught, you are subject to large fines and/or prison time
Can not possibly be true, can it? Welcome to PPRuNE.

Let's ask Timothy Geithner about his non-payment of the self employment taxes while working for the IMF. Certainly no large fines nor any prison time; not even penalties.

Then there is Charlie Rangell; where does one start? Just to scrach the surface how about the Harlem apartments, Congressional parking/storage for his Benz and the rental income off his Dominican Villa? Large fines, threat of prison -no possible way!

Oh wait.....maybe I am wrong.....in the land of "equal justice for all". I get it if some pilot doesn't report then the heavy hand of the law comes down. But for the politically connected the same laws do not apply. The sand pit, the steamy humidity of the DRC or the air-conditioned marble halls of Washington DC, the largest debtor nation on the planet, the corruption, hypocrisy and decay is the same.

HPIC 3rd Jul 2011 21:22


Originally Posted by EK380
The US Tax thing is correct... However I never understood why you have to pay tax to your home country when you don't benefit from it and don't live there?! Pay and don't get anything into return... Pay tax for a green card, no thank you!

BTW: this comes from a European citizen who used to pay more than 50% tax. At least we got good health care, free schooling etc in return!
In Dubai more than 10 years and nothing paying any direct income tax. Even today! Main reason to be here!

Yearly tax free salary without including schooling, accommodation, provident fund; $190.000 / 135.000€. That is for a training position and not including a recent 14 week ($30.000 / 20000€) bonus.

Did you get to choose the country you were born in? I didn't. I'm certainly not saying I'm disappointed that I'm a natural born US Citizen....quite the contrary, actually...but in any case, none of us have a choice where we're born...and we have to deal with whatever the situation is in our home country, or denounce our citizenship to become a citizen of another country.

Green card? Well, that's a different issue, but one I am not qualified to comment on.

You don't think we get good healthcare in the US? Well, we may be a bit behind the times...but soon we will have ObamaCare....? :ugh: Nevermind, that's better left to another discussion..

Hope you're happy at EK...it's a move that I have considered, but I'm unsure whether it would be the best move for me personally. Far East carriers are some very interesting prospects as well.....but, I'm wondering...where do you get $190k a year? EK published pay rates that I have seen indicate the max is approximately two-thirds of that. Does the TRI position make up for the extra amount, is it overtime, etc??

HPIC 3rd Jul 2011 21:27


Originally Posted by Northbeach
Can not possibly be true, can it? Welcome to PPRuNE.

Thanks.


Let's ask Timothy Geithner about his non-payment of the self employment taxes while working for the IMF. Certainly no large fines nor any prison time; not even penalties.

Then there is Charlie Rangell; where does one start? Just to scrach the surface how about the Harlem apartments, Congressional parking/storage for his Benz and the rental income off his Dominican Villa? Large fines, threat of prison -no possible way!

Oh wait.....maybe I am wrong.....in the land of "equal justice for all". I get it if some pilot doesn't report then the heavy hand of the law comes down. But for the politically connected the same laws do not apply. The sand pit, the steamy humidity of the DRC or the air-conditioned marble halls of Washington DC, the largest debtor nation on the planet, the corruption, hypocrisy and decay is the same.
Oh, wait....did I mistake this for the political forum?

Not interested in political debates....leave me out of it.

SassyPilotsWife 4th Jul 2011 00:45

Dependants
 
Keep paying taxes ! All those on welfare are depending on us! :ugh:

Sir H 4th Jul 2011 09:30

Theft?
 
As some wise man said "All taxes are theft" ;-)

Microburst2002 4th Jul 2011 10:19

how it goes with taxes (universally and ever since the firs tax ever)
 
They first start with small, tiny, symbolic, indirect taxes.

Then they progress and add not so tiny ones on with a variety of reasons for taxing, such as "housing"?

Then they come up with an "added value tax", to tax comsuming stuff. just like that.

Finally, they argue that indirect taxing is unfair for the lower wages, so they introduce income tax (without removing or reducing indiretc taxes).

This is what is going to happen there, sooner or later.

It is pretty much like the old "just the tip, just let me introduce the tip of 'it', my love... ". If she agrees, after the tip it comes the full length, that's for sure!

SassyPilotsWife 4th Jul 2011 18:28

WOW Microburst!

I never thought getting taxed could be so fun. I think i'll put this poster up in the bedroom now :D


äÊíÌÉ ÈÍË Google Úä ÇáÕæÑ Íæá http://longdarkteatime.com/images/uncle_sam_taxes.jpg

jackx123 5th Jul 2011 04:54

Michael More (9/11) made a good observation with the US. The take home pay is 10% less than in france once you paid all your private medicare, schools, uni, taxes etc.


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