The majority of expats relocating to Dubai from US are moving for work purposes. Certainly, the young job market of the UAE appreciates workers with good pay and a tax-free income.
However, with 47-48 working hours per week and the working days starting from Sunday to Thursday, you might find it a little different from what you had in the US.
But with time, you will get acclimated to it. So, to enjoy your stay in the City of Gold as a worker, you need to understand what jobs are available to you as an American. Here is a list of jobs and their average monthly salaries.
- Psychologist – 21,488 AED.
- Information Security Analyst – 24,200 AED.
- Electronics and Communication Engineering – 45,000 AED.
- Radiation Therapist – 59,200 AED.
- Accounting Manager – 32,400 AED.
- Sales Manager – 37,400 AED.
- Academic Advisor – 23,700 AED.
- Events Manager – 13,900 AED.
- Pharmacist – 11,800 AED.
- Software Developer – 19,500 AED.
UAE Tax System
The UAE is considered a tax-free country because it doesn’t place any levy on income earned in the country. You only get taxed on your income when you are a tax resident of another country.
This means that if you are a tax resident of the United States, you will be taxed for every income you earn in the UAE. However, even though the UAE is considered tax-free, it is not always true.
Even though there are no income taxes in the UAE, there are a plethora of taxes that are levied on a regular basis. As an American moving to Dubai from US, you should know that you will be taxed 10% municipal tax on hotel and entertainment.
This means that whenever you book a hotel or pay for a meal, 10% municipal tax will be added to your bill. Also, there are corporate taxes and other indirect taxes on alcohol.
If you purchase alcohol with a legal liquor license, you will be taxed 30%. However, if you choose to import alcohol from another country into Dubai, there is a 50% tax attracted. It’s important to note that these taxes aren’t much. And as you may already know, so many skilled workers come to the UAE, particularly Dubai because it is almost tax-free.
That’s why workers in the UAE are given the privilege to enjoy their salaries without any significant amount deducted as they don’t pay income tax in the UAE (and there seem to be no plans of the taxation system of the UAE changing anytime soon).