UAE relaxes tax rules to lure back fleeing expats

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The FT reports that the UAE is allowing expat residents to spend more time abroad without losing their generous tax status. This move is designed to incentivise the return of workers who have fled due to the Iran war. Foreign residents of the UAE are not subject to income tax but must stay in the country for 183 days a year to qualify for this status, falling to 90 days for people with a permanent residence. Legions of expats have left since Iran started launching strikes against its neighbours. If the exodus becomes permanent, it would have a particularly damaging effect on Dubai, a hub for international business and tourism that does not rely on fossil fuel reserves. The Emirati tax authority has erred against a blanket exemption but is advising individuals that their requests will be addressed on a case-by-case basis.