Tax Free Income in UAE

Hi Folks.

I work in construction and like alot of people here in Ireland I have recently been made redundant and basically I don't hold much hope of finding new employment here in the short to medium term so I have just recently accepted a job offer from Abu Dhabi.

My salary there will be tax free so basically I wish to find out if I will have any tax implications etc. here in Ireland when I return home in a year or two. (If things have picked up of course).

Also I wish to tranfer my savings back home every few months as I would feel a little safer having my money saved here as opposed to keeping it in the United Arab Emirates. I wonder would there be any complications in transferring money back here every few months and would it be subject to any taxes etc here from revenue etc.

Does anyone have any experience of something similar or know anything about the matter in general?

many thanks in advance.

If you spend less than 173 days in Ireland in a year, you are regarded as non resident for tax purposes. Basically, your income is not taxed in Ireland. You are then deemed to be tax resident in the country you reside and fall under their laws. In this case you would be tax free.

Sending your money home will not incur any tax charges.

To query this further, you should contact 1890 333 425.

Ive been to Dubai in September and the heat was cruel in the shade, never mind on a building site.

I am a construction professional also considering moving to UAE in new year, mainly for the quality of experience not now available in this country and the tax free salary, If I move in January I will have been owner occupier of my home for 2 years so no clawback on stamp duty, but I presume I will loose my entitlement to TRS?

poundhound said:

If you spend less than 173 days in Ireland in a year, you are regarded as non resident for tax purposes. Basically, your income is not taxed in Ireland. You are then deemed to be tax resident in the country you reside and fall under their laws. In this case you would be tax free.

Sending your money home will not incur any tax charges.

To query this further, you should contact 1890 333 425.

Ive been to Dubai in September and the heat was cruel in the shade, never mind on a building site.

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Hi,
I am also moving to Dubai soon but want to transfer money into my Irish bank account to keep a loan paid off - would there be any issue (taxation wise) in doing this prior to the 173 day?
Thanks in advance!!

Hi,

bit off topic, but how did you get hooked up for a job in Dubai?
I only know of one website, and they are based in Toronto, and want money up front before they will even speak to me!

The very reason why you should sit down face to face with a qualified tax advisor is illustrated in the extract I have highlighted below. The reference to 173 is blatantly wrong.

Go sort out a meeting with a tax advisor and pay for the advice you get. It will be far more worth it than free advice.

poundhound said:

If you spend less than 173 ...

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Mark_Mc said:

The very reason why you should sit down face to face with a qualified tax advisor is illustrated in the extract I have highlighted below. The reference to 173 is blatantly wrong.

Go sort out a meeting with a tax advisor and pay for the advice you get. It will be far more worth it than free advice.

Click to expand...

Thanks Mark!
But the question was "Is there any implication (taxation wise)?" Yes or no will suffice as an answer

Donal, my reply was not directed at you. It was directed at the original OP.

BTW, it's never yes or no with tax. Take it from someone who knows. It's like a garda telling u not to tell him how to do his job.

DonalB said:

Thanks Mark!
But the question was "Is there any implication (taxation wise)?" Yes or no will suffice as an answer

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Lots of tax implications! If you were to pick up and leave Ireland today you would be Resident in Ireland for 2008 and ordinarily resident for the next three tax years. I'm assuming you are Irish domiciled?

An individual who is Resident or Ordinarily Resident in Ireland and also Domiciled will be liable to Irish Tax on their worldwide earnings, with some exceptions. One of these exceptions is in relation to a Foreign Employment which has been subject to Foreign Income, with which none of the duties you carry out relate to Irish work.

The question is will your employment income from Dubai be subject to Irish tax as you haven't paid tax in any other country on it. It's not something I'd know of the top of my head but I'd imagine the employment income wouldn't be liable to Irish Income Tax.

If you intend on coming back within a year or two then you don't really have any other worries. If you stay there for over three years you'll have to factor in the remittance basis.

I'd recommend you seek professional advice.