US tax · US citizens and green card holders
US taxes, handled from the UAE, reviewed by a California licensed CPA.
Every US citizen and green card holder owes the IRS a return, wherever they live. Our US associates prepare and sign it, reviewed from Dubai.
Who this is for
Three kinds of American in the UAE. One return each, plus the forms that go with it.
Employees and freelancers
You earn a salary or fees here and pay no UAE income tax. You still file Form 1040 every year. Form 2555 takes the first USD 130,000 of earned income out of US tax for the 2025 filing year. Most owe nothing and must still file.
Owners of a UAE company
If you own 10% or more of a UAE company, Form 5471 is usually due with your 1040, and always when the company is more than 50% US-owned. It is the form most often missed. The penalty is USD 10,000 per form per year. It is built from the accounts we keep or audit on the UAE side.
Retirees and investors
Pension, dividends, rent and capital gains are not earned income, so Form 2555 does not cover them. Form 1116 credits tax paid elsewhere. FBAR and Form 8938 report the accounts. We work out which apply to you.
What must be filed
Five forms. Most people need two or three.
Dates are for a calendar year filer living abroad. Where a US figure changes yearly we give the 2025 filing year. Check the IRS figure for your year.
| Form | Who files it | When | If it is missed |
|---|---|---|---|
| Form 1040 | Every US citizen and green card holder, wherever they live. | 15 June abroad, 15 October on request. Tax owed is due 15 April. | Interest from 15 April on tax owed, plus late filing and late payment penalties. |
| Form 2555 or 1116 | With the 1040. Form 2555 excludes up to USD 130,000 of earned income for 2025. Form 1116 credits foreign tax paid. | With the 1040. | The 1040 shows US tax on income that could have been excluded or credited. |
| FBAR FinCEN 114 | Anyone whose non-US accounts together went over USD 10,000 at any point in the year. | 15 April, automatic extension to 15 October. Filed online with the Treasury. | Civil penalties set by FinCEN; check the current figure. Missed years are usually fixed through the streamlined procedure. |
| Form 8938 FATCA | Those abroad with foreign financial assets over USD 200,000 at year end or USD 300,000 at any time (single). Double for married filing jointly. | With the 1040. | A fixed penalty per form. Check the IRS figure for your year. |
| Form 5471 | A US person who owns 10% or more of a foreign company, including a UAE company. Always due when the company is more than 50% US-owned. | With the 1040. | USD 10,000 per form per year. |
There is no US and UAE income tax treaty. Nothing in a residence visa or a free zone license changes what the IRS expects from you.
The year of deadlines
Where the US dates fall against your UAE dates.
15 April for tax owed and the FBAR. 15 June for the return. 15 October if you extend. 30 September for the UAE corporate tax return of a December year end. One office watches all of them.
Missed years
Many US citizens in the UAE learn about the filing duty years after they arrive. The IRS has a route for this: the Streamlined Foreign Offshore Procedures. You file the last 3 years of returns and 6 years of FBARs, with a signed statement of why they were missed. For non-wilful cases there is no penalty.
Non-wilful means you did not know the rule, misunderstood it, or were told wrongly. It does not mean you knew and chose not to file. The IRS reads the statement, so it has to be true and specific to you. It is written with you, from your facts, not from a template.
If wilfulness is a real question in your case, we say so before anything is filed. The streamlined route is not the right one then.
The streamlined package
- 3 years of Form 1040, with the forms that apply
- 6 years of FBARs
- 0 penalty for non-wilful cases
- 1 signed statement, written from your facts
Why a firm in Dubai
The online firms are good at the American side. We are in the room for both.
Capable online firms prepare US expat returns, and for one salary and one bank account they do a fine job. Where they cannot help is the UAE side of the same file. Your Form 5471 and your UAE corporate tax return come from the same accounts. When two firms prepare them, the returns often disagree, and both authorities can see it.
- WhatsApp answered within one business day. Office 902, Makateb Building, Port Saeed, Monday to Friday 9:00 am to 6:30 pm.
- The UAE side in the same file. Bookkeeping, audit and corporate tax by the office that reviews your 1040 and 5471.
- A UAE corporate tax return that agrees with the 5471. Same figures, same year end, one set of working papers.
- Prepared and signed by our US associates in Dallas, Texas and Laguna Hills, California. Reviewed from Dubai by the firm's California licensed CPA, license 147070, checkable on the Board's public record.
Fees
A fixed fee, quoted before we start.
A fixed fee, quoted within one business day of seeing last year's return and a list of your accounts and companies, before any work starts.
A second company, a rental property or a state return is quoted on top. If you own a US corporation or have US employees, see US business tax and payroll.
Questions we are asked
Seven straight answers.
- 01
Do I still have to file if I pay no tax?
Yes. Filing does not depend on owing tax. Most US citizens in the UAE owe nothing after Form 2555, but the 1040 and usually the FBAR must still be filed every year.
- 02
What is FBAR?
A report of foreign bank accounts, FinCEN Form 114, filed online with the US Treasury. It is due if your non-US accounts together went over USD 10,000 at any moment in the year. Salary, savings and joint accounts all count.
- 03
Does my UAE salary count?
Yes. It goes on Form 1040 as earned income. Form 2555 then excludes up to USD 130,000 of it for the 2025 filing year; check the IRS figure for your year. Anything above that is taxed in the US, with no UAE income tax to credit against it.
- 04
Does the UAE have a tax treaty with the US?
No. There is no income tax treaty between the two countries. Relief comes from the exclusion on Form 2555 and the credit on Form 1116.
- 05
What about my UAE company?
If you own 10% or more, Form 5471 usually goes in with your 1040, and every year once the company is more than 50% owned by US persons, with the company's balance sheet and income statement. The penalty for a missing form is USD 10,000 per form per year.
- 06
Can you do my UAE corporate tax too?
Yes. The firm's Tax Agent is on the Federal Tax Authority's register, TAAN 20024196, and the firm is a Ministry of Economy and Tourism registered auditor, entry LC4409-01. The return and any audit are done in Dubai by the same office that reviews and coordinates your US forms, so the two agree. See Corporate tax.
- 07
Who signs my US return?
Our US associates in Dallas, Texas and Laguna Hills, California prepare and sign it. The firm's California licensed CPA, license 147070, reviews the file and coordinates it from Dubai. You deal with Dubai throughout.
Contact us