Tax Implication for Wife after Dubai Relocation
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14 June 2022
Hello All,
Background: I am a salaried employer and am moving from Mumbai, India to Dubai, UAE in July'22 on a work visa through my current company. My wife is currently employed as well in India. However, her company is unable to provide work visa immediately for the move and hence we have decided that she will take a tourist visa for now and then in 4 weeks get her converted into Dubai Residential Visa. Her company will provide Work permit in around 2 months and she will start working from Dubai.
Query: What would be the residential status of my wife if we get her visa converted into residential visa in Dubai by Aug'22? Since she is not moving as a result of employment, will she be liable to file income tax this year on her worldwide income (which she will earn once she gets work permit?)
Options: Her company has also provided her an option to terminate her services in India as she leaves and then rehire her in Dubai once they are able to provide work permit. So this means she will travel with me as a dependent and her company will not report anything on India payroll after July.
Objective : My objective is how can we avoid paying taxes on her income in Dubai as she is not moving to Dubai on work permit but as a dependent.
Experts, please share your suggestions.
Background: I am a salaried employer and am moving from Mumbai, India to Dubai, UAE in July'22 on a work visa through my current company. My wife is currently employed as well in India. However, her company is unable to provide work visa immediately for the move and hence we have decided that she will take a tourist visa for now and then in 4 weeks get her converted into Dubai Residential Visa. Her company will provide Work permit in around 2 months and she will start working from Dubai.
Query: What would be the residential status of my wife if we get her visa converted into residential visa in Dubai by Aug'22? Since she is not moving as a result of employment, will she be liable to file income tax this year on her worldwide income (which she will earn once she gets work permit?)
Options: Her company has also provided her an option to terminate her services in India as she leaves and then rehire her in Dubai once they are able to provide work permit. So this means she will travel with me as a dependent and her company will not report anything on India payroll after July.
Objective : My objective is how can we avoid paying taxes on her income in Dubai as she is not moving to Dubai on work permit but as a dependent.
Experts, please share your suggestions.
14 June 2022
She is moving as dependent but going to get work permit and earning income may considered as going for employment.
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14 June 2022
Thanks Sir.
So relocating through Work Visa is not necessary, is it? We can show that since she is earning income in UAE before Sep 20, 2022 (182 days this FY), she is a non resident here in India and not liable to pay tax on Global income?
So relocating through Work Visa is not necessary, is it? We can show that since she is earning income in UAE before Sep 20, 2022 (182 days this FY), she is a non resident here in India and not liable to pay tax on Global income?
14 June 2022
Thanks Sir.
So relocating through Work Visa is not necessary, is it? We can show that since she is earning income in UAE before Sep 20, 2022 (182 days this FY), she is a non resident here in India and not liable to pay tax on Global income?
So relocating through Work Visa is not necessary, is it? We can show that since she is earning income in UAE before Sep 20, 2022 (182 days this FY), she is a non resident here in India and not liable to pay tax on Global income?
14 June 2022
Yes, you are right
.
.
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