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sherick11 · Jan 8, 2008, 07:54 PM

I have a friend who has recently made a permanent move from the US to work in Dubai. I'm unsure if the company he is working for is US owned or not. Will he have to pay US taxes on the money he makes in Dubai? Thanks!

Fr_Chuck · Jan 8, 2008, 08:15 PM

There are a lot of rules, into what the pay will be, how long he will be there and more,

AtlantaTaxExpert · Jan 8, 2008, 09:14 PM

He may be eligible for the Foreign Income Exclusion (depends on how much he makes).

However, regardless of whether he is eligible or not, he DOES have to file a tax return for the foreseeable future.

MukatA · Jan 9, 2008, 01:36 AM

1. A U.S. citizen or resident must report worldwide income and must file tax return if he/she meets the filing requirement.
2. On the foreign income he may be eligible for Earned Income Exclusion up to $85,700 (in 2007) and/or foreign tax credit.

AtlantaTaxExpert · Jan 9, 2008, 10:17 AM

Agreed!

Virginia_US_Tax · Jan 5, 2011, 04:56 AM

Yes, US Income tax must be paid, but certain exclusions from income may be available. Americans working abroad may be eligible to exclude from U.S. taxable income certain foreign earned income (Generally, salary / compensation -- For 2010 $91,500)and foreign housing costs (IRS will announce amounts for high rent cities like Dubai). The exclusions apply regardless of whether any foreign tax is paid on the foreign earned income or housing amounts (Dubai currently imposes no income tax). Significantly many Americans do not realize that these exclusion benefits can be claimed only if a tax return is filed within certain time deadlines. Those who have dropped out of the tax reporting system risk losing these valuable tax benefits and incurring harsh penalties unless prompt action is taken to correct the filing situation. Expats should be very concerned about information reporting with regard to foreign bank and other financial accounts, as well as if they own any interests in foreign businesses. (e.g. FBAR and Form 5471 to name a few). I am a US tax lawyer, based in Dubai and happy to assist. I am listed on the US Consulate Website for tax help. Virginia

myvinnyboy · Mar 1, 2012, 11:52 AM

I am considering a move to Dubai from the US Please contact me as I need to do this correctly from the start

AtlantaTaxExpert · Mar 1, 2012, 02:05 PM

If you want my professional help, double-click on my title above and scroll down to my profile/signature. You will find my email address and websites there.

SeemaSingh1 · Sep 9, 2013, 07:32 AM

My Name is Seema M. Singh Esq. and I am an attorney in New Jersey, USA. I have clients who are US citizens looking to move to Dubai and I need to consult with you regarding how to structure their companies so that they can continue to operate their business in the US may through a holding company/investment company in Dubai and to avail of the No Income tax in Dubai and to get the exclusions for tax returns filed in the US.

You can visit my website on www.ssinghlaw.com
Please let me know a good time to speak to you. My email is [email protected] and my office phone is 609-454-3168.

Look forward to discussing this further with you and engaging your services should this work out for my client.
Thank you