How do I tax you? Let me count the ways...

nowhere else in the world (unless someone corrects me) would one still enjoy a "tax-free" living, except here in GCC (gulf cooperative council) countries like UAE. as an employee, it's such a huge weight off our backs. it has attracted so many expats, in fact 80% of the population are expats! and so many companies have invested here. there are even a number of freezone areas in every emirate. last august 22, it was stated in Gulf News "UAE has ranked 20th worldwide and third in the arab world for the best international investment destinations (international outsourcing and offshore services center)..."


but wait!!!! no need to pack your suitcases and come running here! there are a number of hidden creative taxations that you should know first...



for employees like me


1. housing - flat rents have soared high!!! so if your housing allowance has not increased the past years, it either means you need to make do with lower standard of room space, or you go as far as ajman (and yes, accept the traffic!). in 2002, we were renting a nice 3BR flat for only $6,250/annum. now, we can't find 3BR within our budget, so we opt for 2BR at $16,300/annum. do the math to get the rate of increase in a span of 5 yrs!


2. electricity and water - oh same story, but a little less cushioned than the flat rent stories.

3. food - prices of basic commodities have shot up by almost 30%! so your budget allocation for food has increased in the same proportion, unless you go the famous route of 'dieting'!

4. transportation - given that your transportation to-and-from office is free, your cab fare for your leisure activities has increased by almost 50% since 2003!

5. if you're a filipino - your salary converted to peso has decreased by almost 18% (from P55 to P45 dollar conversion in a span of 4 years!), considering that most salary levels has not increased, or if they did, only about 5-10%


6. dining out - even with restos mushrooming everywhere, it does not make the pricing pro-consumer. i guess the demand is still much higher than the supply!


so you're one blessed employee if the company pays for your housing, furnishings, water, electricity, clothing, car, gasoline, parking, phone bills, medical insurance and gym! ;)



for companies




1. emiratization - for every 50 employees, the company should hire one local (emirati) with a minimum salary of AED4000 ($1,086) for a high school graduate! plus you have to pay part of their pension, and give way to special working conditions for locals.


2. labor visas - visa fees per staff has crazily gone up by almost 500% since 2002! plus you need to surrender a bank guarantee of $1000 per staff!


3. parking fees - gone are the days when you can freely park anywhere! public roads are charging $0.27 per hour, $1.35 for 2 hours and $2.17 per 3 hours! i'm sure in a few years' time, the malls will start making money out this too!


4. salik tollway - here's another bygone privilege... no more free use of the Sheik Zayed road! salik, proclaimed to be created to reduce the traffic in that road (oh, yeah?!) was said to be amassing dirhams by now, what with $1 per passing, and $54 for fines!


5. promotional fees - i can't believe that each kind of flyer we have to pay $135 per month! plus we have to pay all kinds of concocted fees for every promo that we make (and it's darn expensive!) and on top of that, we have to pay the economic department and/or chamber of commerce (really confusing at times! double pay!) to participate in their lame promos!


6. fines, fines, fines - sometimes you will not be aware of a ruling, until someone from baladiya (municipality) gives you a notice of fine! oh well!


7. business permits - many of business process has modernized, but entails more fees. of course! modernization has a price tag!


well, at least, as what taxation was all about hundreds of ages ago, it is those who make much money a.k.a companies, that are being heavily 'taxed'!