Tax Equilisation for Abu Dhabi Job Contract

While Abu Dhabi is a tax-free environment, depending on where you're from, you'll be liable for tax in your home country. Tax Equalization is usually a large concern of people from America, who must pay taxes to the US regardless of their location (unless they're working in a country with a dual tax agreement).

Americans working in Abu Dhabi will want to negotiate a tax equalisation stipulation in their contract, because otherwise they will have to pay tax to the US government on their salary as well as ALL of their allowances (like school allowances, accommodation allowance, car allowance, etc...). This can take a huge chunk out of your income and wipe out any benefits you had from working in a tax-free environment in the first place.

Most employers are familiar with this stipulation and do include it.

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