Dubai: A PWC report, shared by the Dubai Media Office on Monday, rated Dubai as the first, globally, based on the what the take-home salary of individuals working in the emirate was.
The study compared the salaries taken home by highly-paid resident employees in different cities across the world, and Dubai came out on top with employees here taking home 100 per cent of their income.
The take-home salary refers to the net salary taken home by an employee after deducting tax and/or social security payments. The report also assumes that the employee is not a remote worker, and resides in the country of employment. The survery was done based on incomes of married individuals with no children.
Income tax in the UAE
Income earned by salaried individuals in the UAE is 100 per cent tax free in the country. There is also no social security contribution levied from non-national employees in the UAE. This gives salaried UAE residents the ability to take home their entire income with no deductions by the UAE government.
However, for some foreign citizens, they may be liable to tax rules of their home country. For example, an American citizen working in the UAE will have to pay no taxes here, but may be liable to pay taxes back home on the income made while working in the UAE. On the other hand, for instance, non-resident Indians (NRI) in the UAE pay zero tax on salary earned in the UAE and also pay no tax in India due to their NRI status.