Would you stick around in the Middle East if income tax was imposed?

In Qatar and the UAE it's the locals in the banking sector able to earn the more attractive salaries. In Saudi expat pay outstrips that of the indigenous population in the private sector. Nonetheless, a controversial plan to introduce income tax for expats to level the playing field has been rejected by the government.

All this begs the question of whether expats would stay in the GCC if income tax was introduced.

One of the main selling points of working in the region is the potential to up your earnings by avoiding giving a proportion to the state's coffers. In some ways this makes up for the fact that, in areas like investment banking at least, the earning potential is lower in the region.

If the Saudi proposals followed plans mooted in 2003, any expat earning over SAR3,000 (US$800) a month would be open to paying income tax. This would include just about everyone working in the financial sector. However, the Shoura Council voted 70 to 45 against the proposal.

While there's no direct income tax for expats living in Saudi, any foreigners making money in the kingdom – either through a business or professional services – who are non-residents can be taxed up to 30% on any income above SAR66k (US$17.6k).

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