Known for its commercial viability, Dubai has gained a special place amongst the investors as a promising hub with better returns. People across the world moving to Dubai in search of better job prospects have become a popular trend in the recent past. For this, some have even shifted their base to this exotic city of UAE, irrespective of its climate and nationality.
Hence it is advisable to the newbies to make a thorough study of the life in Dubai and things like income tax levies, municipal tax, council tax and VAT in the UAE.
Plenty of information is already popular among the expats. They don't mind to share it with their counterpart followers who have plans to make Dubai their second home as they are in search of green pastures and thus travel miles to seek shelter in the Emirate.
Despite the fact that the recent times have seen fallout in Dubai's economy, people have still managed to cope up with it, as substantial tax advantages are available to many people who go and live and work in the emirate. That's why the craze hasn't diminished yet and the non-domiciled individuals are coping with the current trends happily.
Some most recent incidences and news stories have a put a check on the integrity of the expatriates. Things like following the customs, traditions, laws of the Emirate, public etiquette and no live-ins of unmarried couples has to be strictly adapted before confirming your stay in Dubai. WN/Photos Foreign nationals with liberal attitude and freedom of expression may find it hard to practice, but if they really want their stay in Dubai to be in harmony then it is always better to follow the norms established for them.
As far as tax is concerned, UAE levies no personal taxation on income. It is unlikely that tax will ever be levied on an individual's income in Dubai and has been officially declared. Nevertheless, if you earn your income in Dubai but are tax resident elsewhere, you may be exposed to taxation on your income. It is like this for the simple reason that where you pay tax and what you pay depends on where you are resident for taxation purposes.
Facts and tax status related of non-residents have to be comprehensively checked because it depends largely on the tenure of your stay. Thus, the taxation is likely to differ highly with each case and position of an individual for many times people come only for a shorter period like six months and return to their nation of origin on completion of the project.
Besides this, tax on items like your reservation at a particular hotel, the food that you order and alcohol adds extra taxes to your bill.
VAT is not yet implemented but soon it will be a common thing in Dubai like other neighboring Asiatic countries in the near future.
Precisely, it could be well estimated that, chances of prosperity are as much in Dubai along with tax payments, prior you have a thorough knowledge and understanding of your personal tax obligations.
