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If Dubai Impose Personal Income Tax, What will be the side effect ? (Let's try to predict future)

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If Dubai impose personal income tax, Do you think It will survive?
Or People left the country and Dubai Become a Ghost City.
Or Dubai Never impose Personal income tax.

What Do you think about future?



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I think it's less likely UAE would introduce personal income tax, but I wouldn't be surprised if they added corporate taxes at some point.


they(UAE) have nothing going on for them beside truism and oil. 0 taxes(with exceptions) brought in a lot of rich people from around the world who spend their money in UAE which feeds the local economy. there is no chance they would impose income tax because they would lose these rich people.

there are better places for territorial tax system(georgia, malaysia, ...) that are not just a desert. and the neighbouring countries have 0% tax as well so they would take themselves out of competition, especially when people can hop right next door.

so i would say both of these are improbable. they already have VAT("sales tax") and they already tax oil companies and banks, the richest businesses. so that is plenty of money to build the infrastructure and run the government. there is not much incentive for additional taxation since there is no need for it.

though, i can see them taxing other types of big businesses, especially in the financial sector.

BUT they might be forced by other countries and organizations to implement at least some kind of income tax. and that i'd say is highly probable, especially of other countries will see capital flight. they will simply pressure UAE thought the threat of imposing various sanctions against them.

even if they would be forced to implement income tax, i am 100% certain they will never implement capital gains tax on all types of capital because that is how the rich make their money. income tax is for normal people so they don't have to care that much about them.

in the future, when UAE is extremely developed and the land will be more infrastructure than desert, i can see them going Singapore way. but i think that is at least 100 years in the future and who knows how the geopolitical situation will look then.


PERSONAL income tax in UAE is out of question. It would be game over for UAE as we know now.
Everybody would leave UAE
However, they could introduce corporate income tax to meet international OECD requirements.
Also the residence requirements will be much more strickt in the future (they will require longer stays, real address (property or rental) adequate size, probably some real minimum investment in real estate or have local bank account with 1m balance). I don't think existing set-up with incorporation of company in FZE and getting residence would stay long.
I would not be suprised that they revoke lots of residencies in the future if let's say person don't have real address etc.
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