Quote:
Originally Posted by rjacobs
Congrats on getting a kick *** paying job. Do they have the same deal like Emirates where your pay is tax free until 85k, then you pay taxes on the rest or is everything tax free?
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Hi, thanks for the question. I hope I don't tell you wrong because I am not a tax professional. The way that I believe it works is that the first $85,400 USD is tax free and you pay tax on anything above that. BUT, if you are married, you get $85,400 and your wife/husband gets $85,400 allowance as well. So, then the two of you would have to make more than 190+ to pay taxes, I think. Even if you aren't married, a large portion of your money here is per diem, so that is tax free, too. So here is an example:
Say you earn $130k in a year. There is no income tax in most countries of this part of the world (because of all of the oil money). You take the $85k expat deduction. So now you're paying tax as if you made roughly $45,000. Let's say that the per diem for the year was $17,000 (very doable when per diem is roughly $4/hr.). Now you're paying tax on only $28,000 USD. The tax rate on $28,000 is very low...and if you can't find legal ways to "hide" $28,000, you need to find a different CPA.
Maybe someone on here can correct my errors, here, but I have been told from people who understand the system that I should not pay hardly anything in tax especially since I'm married. I hope that answers your question.
I'm signing off for the night. It's 11:00PM here in Q8. Goodnight all.
Tim