Taxation of temp work in UAE

[European]

Hi all,
Imagine you are a tax resident in a EU country C1, have been working as a freelance in that country in 2023 until August.
You get a temp job offer from a FZC in UAE for October-December and move there to work for those 3 months.
Your salary would be tax free in UAE but would it be liable to tax in C1 since you are still a tax resident there?
Thanks

 

[Sols]

It depends on what the laws in C1 say. It's possible that you should continue to pay tax in C1 on your UAE income, but so long as you sever your ties to C1 properly and notify them of your new residence, they might leave you alone and not demand tax. That's quite common. Especially if you aren't a citizen of C1.

Check the local rules and see how they are applied. Since you mention UAE specifically, check carefully how C1 handles tax resident moving to UAE (or to zero/low tax jurisdictions in general). There may be different rules for moving to UAE or other such jurisdictions.

 

[European]

I wouldn't be severing ties fully with C1 since it is a temp contract and, although it might be extended, I would likely return to C1 in Jan next year

 

[Sols]

Then you are likely expected to pay taxes in C1 on your UAE income, but check the local rules in C1.

 

[Larin]

Is it your intention to return to C1 after your contract is finished? If so, you will almost certainly be considered a tax resident of C1 for the duration of your temporary absence. However, as @Sols mentioned, it will ultimately depend on the tax residency rules of C1.

 

[JustAnotherNomad]

Also check your visa status in the UAE. It is highly illegal to work on a tourist visa in the UAE.
Getting a UAE residency visa costs the employer money and it takes a while - so "temp work" sounds rather illegal. The UAE really isn't a place where you want to be caught breaking the law.