Dubai high earners keep more of their salary than anywhere else in world: Report

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High earners in Dubai take home more of their salary after tax and social security contributions than anywhere else in the world, according to a report from accountancy firm Pricewaterhousecoopers.

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The emirate’s liberal tax policies mean that workers can keep all of their income without any being diverted to the state coffers directly.

Hong Kong was second on the list; high earners in the special administrative region of China are taxed around 15 percent of their income.

Singapore, another city state coveted by expats for its high salaries, taxes its wealthiest at around 20 percent of their income, placing it third on the list.

Florida, the highest-rated US state on the list, placed fourth, while the UK came in at ninth.

The list compiled by Pricewaterhousecoopers was Tweeted by Dubai’s media office on Monday.

Although Dubai does not impose any income tax, a five percent value-added tax was introduced in the United Arab Emirates at the beginning of 2018.

The UAE also levies corporate tax on oil companies and foreign banks, a tourism tax of around 10 percent of the cost of a hotel room.

Renters are also charged a municipality fee amounting to five percent of annual rent, which funds civic services including waste management.

The country introduced a series of reforms in 2020 widely seen as attempting to counterbalance the effect of the coronavirus pandemic on its economy by attracting high earners.

These included new rules making ten-year ‘golden’ residency visas more widely available.

All doctors in the country, for example, are now eligible for the long term visas – whereas residency for other expatriates is tied to their employer.

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