I have my job based in United Arab Emirates, but I live in the United States. Can I continue to get paid in UAE Dirhams in my bank account in Dubai? Or do I need to transfer the same to the US?

Does this become an illegal thing to do? If not, how much money can I transfer every month from my Dubai account to my American account?

  • As far as the US is concerned, you can get paid any amount you want in any currency you want in any account you want. You just have to be sure you do everything right when reporting it for your taxes.
    – BrenBarn
    Jan 7 '15 at 5:30

The US requires its (tax) residents to report foreign accounts if the balances (on all the accounts together) are $10K or more at any given day during the year. This is done through the FBAR system.

In addition, you obviously need to report this income on your US tax return and pay taxes. If the balances on your foreign accounts exceed specific threshold, your tax return should also include form 8938.

If you report everything and pay the taxes due - you can keep the money wherever you want and transfer it between your accounts as you may see fit. If you don't - the US government may come after you with huge penalties, and the Dubai bank may freeze your account.

Its easy to become US tax resident. Stay in the US for more than half a year in a row - and here you are. Subject to the US taxation. Even if you're not a US citizen or green card holder, or at all illegal. Some immigration statuses may grant you an exemption, but none that allows you working for your Dubai employer, so I'm assuming you're a US tax resident.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.