# Tax Liability



## ndskidder (Mar 8, 2010)

Hello, I am a US citizen and considering a 3-6month consulting contract in Abu Dhabi. I am being pitched by the firm that it is tax free but my sense is that they are speaking more from the firm's liability than my own--it is a small firm with limited presence in the region at the moment. I gather that I am subject to taxes based on my nationality and not my physical presence. I have no intention of relinquishing my US citizenship or status as long term resident at the moment. Anyone able to advise on the conceptual basis of my situation, as well as any deductions and or pitfalls out there?

Thanks very much
Nick


----------



## Bevdeforges (Nov 16, 2007)

Evidently there are no income taxes in Abu Dhabi (or in the rest of the Emirates). But as a US citizen, you must declare and pay taxes on your worldwide income - including from any consulting gigs in Abu Dhabi or any other country with or without income taxes.

Unfortunately, a 3 to 6 month gig will not qualify you for the overseas earned income exclusion (form 2555). For that you need to be overseas for 12 consecutive months, or for an entire calendar year (i.e. Jan 1 to Dec. 31). 
Cheers,
Bev


----------



## ndskidder (Mar 8, 2010)

Bevdeforges said:


> Evidently there are no income taxes in Abu Dhabi (or in the rest of the Emirates). But as a US citizen, you must declare and pay taxes on your worldwide income - including from any consulting gigs in Abu Dhabi or any other country with or without income taxes.
> 
> Unfortunately, a 3 to 6 month gig will not qualify you for the overseas earned income exclusion (form 2555). For that you need to be overseas for 12 consecutive months, or for an entire calendar year (i.e. Jan 1 to Dec. 31).
> Cheers,
> Bev


Thanks Bev, I can't tell you how helpful this information is. I really appreciate it


----------

