United Arab Emirates

Contracting in United Arab Emirates

How can an Umbrella Company Help with Contracting in United Arab Emirates?

Most freelance workers aren’t superheroes who successfully tackle these issues all on their own. There are companies who specialise in helping workers make the most out of their contracts.

They’re called Umbrella Companies (or, contractor management companies).

Basically, an Umbrella Company acts as your full-time employer, even though you maintain your independence as a contractor. They collect and filter payments from your clients, filtering out the necessary social security and fees. You send them your timesheets, and they send you payments.

Because they act as your “employer,’ they can sponsor you and provide a single work permit for multiple contracts in the United Arab Emirates. Even better, most are experts in the United Arab Emirates and expat tax law, meaning they’ll also help you optimise your earnings in the United Arab Emirates.

Although the Umbrella Company is technically your “employer,” you’re essentially freeing yourself to work even more independently. You still dictate your contracts, your hours, your schedule. The Umbrella Company simply filters out the time-consuming admin and immigration issues, allowing you to focus on your new contract.

Can I Organise My Taxes and Work Permit Myself?

Generally, you need to have an employer sponsor in order to secure the appropriate work permit and work visa for the United Arab emirates.

If you’re working independently, it can be difficult to find clients willing to sponsor you. Moreover, even if your client can do this, you’ll need a new sponsor each time you decide to take on a new contract. Of course, every new sponsor will mean more paperwork.

Also, are you familiar with the intricacies of the tax system in the United Arab Emirates, as well as your own country’s laws on overseas earnings? If so, good on you!

However, if you’re like the rest of us, figuring out (much less reducing) your tax liability in the United Arab Emirates and your home country can seem like full-time work in itself.

A Contractor’s Guide to Taxes in United Arab Emirates

One of the most consistently challenging aspects of contracting in the UAE is complying with the country’s tax system. As well as paying tax in the UAE, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.

How do I calculate my taxable income in United Arab Emirates

Currently, there are no taxes on income in the UAE. However, laws are constantly changing. You will need to find someone who can keep you updated and informed!

Tax Filing as a Contractor in United Arab Emirates

Tax Figures in United Arab Emirates

Currency Arab Emirates Dirham (AED)

Tax Residency in United Arab Emirates

When do you become a tax resident in United Arab Emirates

You become a tax resident in United Arab Emirates when:

There is no residency for tax purposes in the UAE. However, the Ministry of Finance issues certificates to individuals who have been physically present in the UAE for at least 183 days within any 12-month period.

Does the 183 day rule apply in United Arab Emirates

Yes

Am I taxed on my global income in United Arab Emirates

No

Can you set up your own Limited Company in United Arab Emirates?

How long does it take to set up 8-9 days
How much does it cost AED6,270 + notary fees of 0.25% of the capital (capped at AED10,000) + 5% of the value of the lease agreement
Is it easy? Starting a business in the UAE has its administrative challenges. The UAE has a ‘Starting a Business Rank’ of 51 out of 190 countries (Source: World Bank).

Tax Calculator in United Arab Emirates

If you are a contractor and want a calculation on your tax and net retention in the UAE, we can supply it to you free of charge.

Using an Umbrella Company for Income Tax in United Arab Emirates

Contractors in the UAE are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A UAE umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in UAE taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the UAE tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax in United Arab Emirates

We work with numerous umbrella companies in the UAE, many of whom are experts in tax and immigration laws. If you have any questions about tax in the UAE, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their UAE work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in the UAE but without the overhead of directly dealing with the UAE tax authorities. Get in touch with us today for some reliable advice on tax in the UAE!

A Contractor’s Guide to Work Permits in United Arab Emirates

How Does an Umbrella Company Work?

Most people want to do their work, earn their money and enjoy their spare time without taking on loads of admin in a new country. That is why an umbrella company can help.

When you’re working through an Umbrella Company, you’ll essentially be outsourcing the admin and tax issues to specialists.

While the umbrella company will charge a fee, you’ll likely end up saving more money in the long run: you’ll be able to focus on your work, expertly reduce your tax liability, and comply with all laws and regulations in the United Arab Emirates (which means avoiding fees, fines, or even worse penalties).

How Can We Help You?

There’s a huge variety of Umbrella Companies with different specialities and advantages in the United Arab Emirates. How do you find the right one for your circumstances?

We work closely with Umbrella Companies all throughout the United Arab Emirates and match contractors with the right company for them. If you’ve already secured a contract in the United Arab Emirates, we can help you find your best match (for free). Or, we can simply give you feedback on your situation (for free).

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