Client has been offered job in United Arab Emirates (will be there for about 3 years) and has been told by his UK employer that an NT code will be applied to his salary so that no UK tax paid although still subject to NIC.
As will no doubt be apparent, I know very little about overseas employment issues and the issue of NT codes but was wondering if those earnings would or may be subject to taxation in the overseas country through whatever mechanism might be in place to collect/assess such untaxed earnings.
I understand that these need not be declared upon UK tax return where non-resident but are they completely tax free?
Laura
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UAE Taxes
In this instance your client's employers are probably right to do what they have suggested. There are no personal income taxes or social security contributions in UAE, although the employee does need to have healthcare coverage to get residence in UAE, but they have probably sorted that out. As there are are no taxes/SS, it is worth maintaining NI contributions, but not paying taxes, so NT would be the better option.