UAE Considers Imposing Remittance Tax On Expats

By ExpatBriefing.com Editorial 02 October, 2013

The government of the United Arab Emirates is considering whether to tax remittances, according to the president of Dubai Chamber of Commerce and Industry, Hamad Buamim.

The government is seeking feedback on the proposal from relevant bodies such as banks and financial institutions, Buamim said.

The proposed tax is seen as a response to concerns that the UAE is losing too much money through foreign workers sending a portion of their earnings abroad in the form of remittances. Currently foreign citizens make up about 80 percent of the population of the UAE. Workers sent a net AED45.1bn (USD12.3bn) abroad last year, an increase from AED41.2bn a year earlier.

Buamim said he believes expatriates in the UAE will continue to send money home even if the tax is imposed. "I don't think it will really impact the remittance business [but] it will impact the consumer, no doubt about that," he said.

Tags: Expatriates | United Arab Emirates | Tax | Business | Dubai | Expats | Work |

 





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