Gary Clement for The National
Gary Clement for The National

Taxes are still a pain for mostly non-taxed expats



OK, I admit it: I'm on a roll. Last week, death. This week, taxes. It's no wonder I haven't been invited to any dinner parties lately.

Who cares about tax, I hear you ask? If we don't pay any in the UAE, how can this much-maligned (and some would say deservedly so) topic have any bearing on where we are, let alone what we do?

You'd be surprised. Let's have a show of hands: who pays tax or has to file a tax return in their home countries? I'm not sure I should even count this group, but I see there's a 100 per cent showing of every American who lives in the UAE (well, the ones who read this column, anyway). For once, it's hard not to feel sorry for non-resident US citizens, who are forced to file a tax return every year for Uncle Sam.

But there's also a decent amount of representation from people who rent out their properties in their home countries, which is considered income, and others who have received an inheritance and have to pay death taxes, for instance.

So, even though we live in a tax-free country, taxes still have an impact on our personal finances here. Unfortunately, there's nothing we can do about it. But, clearly, earning a tax-free salary helps to take the sting out of our responsibilities to governments back home, wherever that may be.

I'm not a fan of taxes, but I do understand they are a necessary evil, sorry, part of our lives to keep infrastructure and all things government-related clipping along, from bloated civil-servant salaries to keeping the president's stationery cupboard stocked. Taxes are meant to pay for the upkeep and building of roads, for health care and simple things such as garbage collections, as well other federal, state and local services that are too many to list here.

Probably the best example of a monumental misuse of taxpayer dollars was in the US during the height of the financial crisis: the controversial US$700 billion (Dh2.5 trillion) Troubled Asset Relief Program (Tarp). The Bush government magnanimously threw Wall Street the Tarp lifeline in October 2008 to save the country's banks, which then enabled them to continue calling in troubled mortgages from low-income earners or people who had lost their jobs thanks to the sub-prime debacle, caused, of course, by the lenders themselves.

A year ago, Reuters reported that the US government's bailout watchdog said in its quarterly report to Congress that while Tarp was supposed to encourage banks to increase financing for US businesses and consumers, lending had decreased on a month-by-month basis.

Preserving homeownership and promoting jobs were also "explicit purposes" of the Emergency Economic Stabilization Act of 2008 that enabled Tarp, Reuters added. But the "unemployment rate remained at 10 per cent and only a small fraction of troubled mortgages have been permanently modified to lower borrowers' monthly payments".

Now that's an interesting way to thank the people, rather than, say, being a little humane about it and giving them back their homes or, at the very least, some breathing space to catch up on their payments.

But back to tax. If you live in Sweden, you are hit with one of the highest rates in the world - an average of 57.77 per cent (but all those benefits from the socialist government does help to ease the pain), Australians pay between 17 per cent and 45 per cent, depending on the level of their income, and in India, you pay from 10 per cent to 30 per cent.

Hong Kong is renowned as a tax-friendly city, with residents paying no more than 17 per cent, while its rival, Singapore, is also up there with the best: a maximum of 20 per cent, according to www.worldwide-tax.com. Monaco, of course, is zero per cent. If you earn £150,000 (Dh890,496) or more in the UK, you will lose 50 per cent of your salary to Her Majesty's Revenue & Customs. This drops to 40 per cent on a salary of between £37,401 and £150,000. Pakistan charges a maximum of 25 per cent, the Philippines 5 per cent to 32 per cent and in Canada, federal taxes come in at between 15 per cent and 29 per cent, not to mention the other taxes levied by the country's states and provinces. The US is similar, with taxes levied at 15 per cent to 35 per cent of your salary.

We all have smart tax advisers at home to help us to legally minimise the yearly hit on our salaries.

Luckily, we work in the UAE, which means we can escape the worst of it if we declare ourselves non-residents of our home countries - barring our poor American cousins, of course.

But here's an idea: what if we did pay tax in the Emirates? Would you support it, or are you here solely because there is no income tax and you can (supposedly) save more?

There has been talk of this happening. Back in 2008, the UAE was reportedly considering the introduction of a value-added tax (VAT) as it sought to diversify public revenues.

This has yet to happen and the idea seems to have been forgotten now that the price of oil has recovered.

In the meantime, however, we should enjoy our tax-free salaries - and save as much as possible.

'The Woman in the House Across the Street from the Girl in the Window'

Director:Michael Lehmann

Stars:Kristen Bell

Rating: 1/5

The Brutalist

Director: Brady Corbet

Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn

Rating: 3.5/5

Emergency phone numbers in the UAE

Estijaba – 8001717 –  number to call to request coronavirus testing

Ministry of Health and Prevention – 80011111

Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre

Emirates airline – 600555555

Etihad Airways – 600555666

Ambulance – 998

Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries

The Written World: How Literature Shaped History
Martin Puchner
Granta

RESULTS

Lightweight (female)
Sara El Bakkali bt Anisha Kadka
Bantamweight
Mohammed Adil Al Debi bt Moaz Abdelgawad
Welterweight
Amir Boureslan bt Mahmoud Zanouny
Featherweight
Mohammed Al Katheeri bt Abrorbek Madaminbekov
Super featherweight
Ibrahem Bilal bt Emad Arafa
Middleweight
Ahmed Abdolaziz bt Imad Essassi
Bantamweight (female)
Ilham Bourakkadi bt Milena Martinou
Welterweight
Mohamed Mardi bt Noureddine El Agouti
Middleweight
Nabil Ouach bt Ymad Atrous
Welterweight
Nouredine Samir bt Marlon Ribeiro
Super welterweight
Brad Stanton bt Mohamed El Boukhari

The full list of 2020 Brit Award nominees (winners in bold):

British group

Coldplay

Foals

Bring me the Horizon

D-Block Europe

Bastille

British Female

Mabel

Freya Ridings

FKA Twigs

Charli xcx

Mahalia​

British male

Harry Styles

Lewis Capaldi

Dave

Michael Kiwanuka

Stormzy​

Best new artist

Aitch

Lewis Capaldi

Dave

Mabel

Sam Fender

Best song

Ed Sheeran and Justin Bieber - I Don’t Care

Mabel - Don’t Call Me Up

Calvin Harrison and Rag’n’Bone Man - Giant

Dave - Location

Mark Ronson feat. Miley Cyrus - Nothing Breaks Like A Heart

AJ Tracey - Ladbroke Grove

Lewis Capaldi - Someone you Loved

Tom Walker - Just You and I

Sam Smith and Normani - Dancing with a Stranger

Stormzy - Vossi Bop

International female

Ariana Grande

Billie Eilish

Camila Cabello

Lana Del Rey

Lizzo

International male

Bruce Springsteen

Burna Boy

Tyler, The Creator

Dermot Kennedy

Post Malone

Best album

Stormzy - Heavy is the Head

Michael Kiwanuka - Kiwanuka

Lewis Capaldi - Divinely Uninspired to a Hellish Extent

Dave - Psychodrama

Harry Styles - Fine Line

Rising star

Celeste

Joy Crookes

beabadoobee

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