Many of us in the UAE and across the GCC have a link to the USA: a passport, a green card, a flat in Florida, shares held with a broker or a stake in a USA company. Salaries are not taxed here, so it is easy to assume there is nothing to file. The USA sees it differently. It depends on who you are and where your income comes from.
Group 1: USA citizens and green card holders
The USA taxes its citizens and green card holders on their worldwide income, wherever they live. Your salary, rent and investment income from the UAE or any GCC country go on a USA return each year once your income passes the filing threshold, which depends on your filing status.
- Reliefs such as the Foreign Earned Income Exclusion mean many people in the Gulf owe little or nothing, but only if they file.
- If your non-USA bank accounts held more than USD 10,000 in total at any time in the year, you also file an FBAR, a separate report of those accounts.
- If you own a company in the UAE or the GCC, expect extra forms about it, such as Form 5471 or Form 8865.
- All of this also applies if you hold USA citizenship through birth or a parent and have never lived there.
- Missed earlier years? The IRS Streamlined procedures let people living abroad catch up: three years of returns and six years of FBARs, with penalties waived if you qualify.
Group 2: not American, but with income or assets in the USA
If you are not a USA citizen or resident, the USA generally taxes only your income from USA sources. The return is Form 1040-NR. Common cases in the UAE and the GCC:
- USA property. Rent, or a sale. On a sale the buyer usually withholds part of the price, and the return is how you settle the real tax and claim back any excess.
- A share in a USA partnership or multi-member LLC. Each partner receives a Schedule K-1 every year. If you receive one, you normally need to file.
- A USA company you own but do not run. A USA LLC with one foreign owner usually has to send the IRS a yearly information return (Form 5472), even with no income. The penalty for missing it starts at USD 25,000.
- USA shares and funds. Dividends reach you after 30% USA tax is taken at source, because no GCC country has an income tax treaty with the USA. Gains on USA shares are generally not taxed for nonresidents. USA shares and property can also fall under USA estate tax, and the exemption for non-Americans is only USD 60,000.
- Work in the USA. Pay for work you physically did there.
To file you need a USA tax number: a Social Security number or an ITIN. The ITIN application (Form W-7) normally goes in with your first return.
Dates for 2025 returns
- USA citizens and green card holders living abroad: 15 June 2026, or 15 October 2026 with an extension.
- Form 1040-NR with USA wages: 15 April 2026, or 15 October 2026 with an extension.
- Form 1040-NR without USA wages: 15 June 2026, or 15 December 2026 with an extension.
- Form 5472 for a USA LLC with a foreign owner: 15 April 2026, or 15 October 2026 with an extension.
- FBAR: 15 October 2026.
An extension gives more time to file, not more time to pay.
Questions to ask yourself
- Do I hold a USA passport or a green card, even one I no longer use?
- Do I own, rent out or plan to sell property in the USA?
- Do I own a USA company or LLC that someone else runs for me?
- Am I a partner in a USA business, and do I receive a Schedule K-1?
- Do I hold USA shares or funds, or receive USA dividends?
- Do I do paid work in the USA, even for short periods?
If any answer is yes, check your position before the next date above.
About the author
Ashraf Noureldin is a USA CPA (California) and UAE Tax Agent with more than 25 years in accounting, audit and tax. He founded ANCPA Auditing L.L.C, an audit and tax firm in Emirates Towers, Dubai. For a question about your own case, email info@cpaauditing.ae, call +971 4 319 7316 or WhatsApp +971 56 620 0575.
This article is general information only. It is not tax, legal or financial advice for any person or company. Take advice on your own facts before you act.