Loads of Brits move to the Arab states so they can get a tax-free salary. That's great for them, but what I don't understand is how can the UAE government fund the public services etc if all these people working there don't pay tax? Someone's got to be losing out, haven't they?
2007-10-12 06:12:02 · 11 answers · asked by SLF 6 in Travel ➔ Africa & Middle East ➔ United Arab Emirates
Well, officialy there is no tax, but there are fees on everything which you almost can compare with tax. Government fees for foreigners are different (more expensive) than for Emiraties. Also foreigners are excluded of the most benefits that Emiraties receive. I.e. free healthcare, free education etc.
This can be financed by the UAE government because of sources of oil etc.
Please be aware that you as a foreigner will receive a tax free payment, but you will not be entiteld to receive any benefits like at home like i.e. unenploment money, social welfare etc. The UAE community is not paying these benefits to any foreigner. These kind of benefits are only for ca. 15% of the UAE population (Emiraties) All others can only stay here as long as they work and support theirself.
A taxfree salary in Dubai means, you (or your sponsor) have to pay for i.e. your healthcare. There is also no retirement scheme for foreigners working in the UAE. A foreigner receiving a taxfree salary has to take care of this by hisself.
There is nothing for free for foreigners in Dubai beside emergency treatment in the government hospitals. Rumors are going on already that VAT will be interduced in within the next couple years. Tourism tax got established already.
Take care.
2007-10-13 09:02:28 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Okay, the UAE is RICH RICH RICH. From all the oil, especially in Abu Dhabi. Dubai relies on its oil but also tourism. There are tons of tourist attractions in the UAE-
Dubai has the world's first indoor ski hill, in the mall of the emirates (the biggest mall in the UAE). All the malls in the UAE are packed with major anchors (like Carrefour, etc.) and designer labels (Louis Vuitton, Chanel, D&G, Gucci, Fendi, you name it).
Also, the Emirates Palace Hotel in Abu Dhabi cost 3 billion to build, and it has a gallery indoors about Abu Dhabi.
There are a lot of projects going on- Saadiyat Island (meaning "Happiness") where a Guggenhiem and Le Louvre are going to be built.
Of course, the local Emirati do get benefits that expats won't get- free education, free health care, free housing, etc.
Yepp, the economy is booming here. So, the government doesn't need our money.
2007-10-13 21:42:57 · answer #2 · answered by Anonymous · 0⤊ 0⤋
There is no tax here, but you will have to pay the hidden fee that called Minicipality Fee which is 10%, and I do refer it as a tax with the alternate name. And the fee goes to government, of course.
Next time you order anything, check out the menu, it says
"All prices are inclusive of 10% Municipality Fee & 10% Service Charge"
2007-10-13 23:11:03 · answer #3 · answered by BabyG 3 · 0⤊ 0⤋
Why do you want to move to Dubai ? If it's money, hard to make a lot of it since Dubai is becoming very expensive. If it's the fun, Europe is better. If it's adventure, South-East Asia is richer. If it's night life, London or Prague are better. If it's weather, Arizona is better. Good luck.
2016-04-08 05:23:21 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Dubai is basically funding their public infrastructure through Government revenue that mostly comes from oil. Also a lot of public services are self funding.
2007-10-12 18:47:01 · answer #5 · answered by Anonymous · 1⤊ 0⤋
Because the UAE funds the government through taxes on oil revenues, not collecting revenues from citizens.
2007-10-12 06:16:25 · answer #6 · answered by asphaltjesus 3 · 0⤊ 0⤋
Tthere is a limited Zakaat [alms] ( like tax).The zakat is required of every adult Muslim with sufficient means. It is a mechanism for for ensuring social justice by transferring wealth from the rich to the low-income strata and those in need.
There are several kinds of zakat .
Zakat on wealth (Zakat-ul-mal) comprises all other types of Zakat, such as on business, crops, livestock, minerals unearthed, etc.
(Zakat-ul-fitr) is a per head payment equivalent to the price of around 2.25 kilograms of the main food of the region (this may be wheat, dates or rice, depending on the place) paid during the fasting month of Ramadan by the head of a family for him/herself and his/her dependents which is distributed or through payments to the Zakat collector.
2007-10-12 22:26:45 · answer #7 · answered by desertbloom2003 4 · 0⤊ 0⤋
Because that country is very rich from the sale of oil (and natural gas?) that taxes are not necessary. The gas sales on exports are taxed and their government gets all the operating capital it needs.
2007-10-12 06:15:48 · answer #8 · answered by Bookworm 4 · 0⤊ 0⤋
Probably the same way the US funds the illegals.
2007-10-12 06:16:28 · answer #9 · answered by Abel O 2 · 0⤊ 0⤋
have no idea but looks like i found my twin ha ha.
2007-10-12 06:15:55 · answer #10 · answered by ? 7 · 0⤊ 1⤋