Tax responsibilities for American working in Dubai taxes
Now, we’ve already discussed that there are no taxes for people to file for in the UAE, but you still have the taxes for US citizens living abroad that you would have to take care of – one the US needs you to address. If you’re new to this, you’ll have to start with form 1040 – the one they call the Individual Income Tax Return, which every US citizen needs to fill up and submit, irrespective of where they live or work. Typically, this has to be filled by April 15th, but we at Expat Global Tax have often found the IRS extending the deadline to June 15 in most cases, and sometimes even till October 15.
The next form that you’d need to fill up is the form 8938. This is for US citizens who own non-US financial assets above certain thresholds. As for the threshold, it depends on your filing status, as well as on whether or not you are a bona fide resident in UAE. There’s one more thing to take care of – form 114, also referred to as the Report of Foreign Bank and Financial Accounts or Report of Foreign Bank and Financial Accounts. This has to be filled if you possess/ possessed at least $10,000 in one or multiple non-US bank accounts, during the financial year for which you are filing. All that being said, the US offers potential tax credits and deductions for expats, but for more on that, you’d have to connect with CPA experts who handle expat Dubai taxes for US citizens. This is where we at Expat Global Tax come in.
Want to maximize savings from expat taxes? Say no more!
Not sure when and how to proceed with your living abroad US taxes? Fear not, we’ve got your back! At Expat Global Tax, we know how to navigate the IRS deadlines, maximize tax credits, and boost your savings in the process. Connect with the experts, now!
Why choose us to file Dubai taxes for US citizens?
Expertise in US and UAE tax laws: We at Expat Global Tax are uniquely positioned to navigate the complex synergy of US and UAE tax laws. Our team of CPA professionals have years of experience in handling tax obligations for US citizens/ American expats.
Maximization of tax benefits: Our team is adept and equipped to handle the finer aspects of tax treaties between the US and UAE, which allows us to help you maximize your tax benefits. We use provisions such as FEIE and Foreign Tax Credit to minimize your tax liabilities.
Personalized guidance all through: From the very beginning, we’ve always been very client-centric, thereby offering personalized guidance to all. Whether you’re a salaried employee, a business owner, or an investor, we can help everyone.
Tax planning and compliance: From filing form 1040 and FBAR to handling complex issues like foreign asset reporting, our team knows how to streamline the process. We prioritize proactive tax planning, so that we never have to do a rush job.
Frequently Asked Questions
What are the tax implications for an American citizen working in the UAE?
For an American working in the UAE, understanding taxes is very necessary. While the UAE imposes no taxes on foreigners working in its geographical confines, you will still have to pay taxes to the IRS. Consulting with experts in taxes for US citizens living abroad, like Expat Global Tax, will help you better understand the process and make it simpler.
What tax deductions and credits am I eligible for as an expat in Dubai?
As an expat living in Dubai, you may be eligible for several credits and tax deductions when filing American working in Dubai taxes. This includes FEIE that allows you to exclude a portion of your foreign earnings from US taxation, and the Foreign Tax Credit, that deals with taxes paid to the UAE. However, making use of these needs careful documentation, which only certified CPA companies can help with.
What are the implications of Dubai’s VAT for US expats?
Dubai’s VAT, which stands at 5%, is the only tax that you’d come across when staying in the country. It is applicable on all goods and services that you may opt for, be it for personal purchases or for the business. This VAT can thus impact your living costs or even business operations in the UAE. Feel free to connect with us for more info on UAE’s VAT and how to file expat US taxes.