A DEWS plan FBAR filing is usually required for US citizens working in the Dubai International Financial Centre. DEWS, the DIFC Employee Workplace Savings plan, holds each member's contributions in an invested account run by a regulated administrator. Its value counts toward the $10,000 FBAR threshold, and it also belongs on Form 8938 once the overseas filing thresholds are met.
Most Americans arrive in the DIFC knowing about the foreign earned income exclusion and little else. DEWS rarely comes up until a streamlined filing years later. Yet it creates three US questions at once: FBAR and Form 8938 reporting, the timing of tax on employer contributions, and PFIC exposure inside the funds. Unlike a UK pension, no tax treaty softens any of them.
What the DEWS plan is
The DIFC Employee Workplace Savings plan is a funded savings scheme that replaced the end-of-service gratuity for DIFC employees from 1 February 2020. Employers must pay at least 5.83% of an employee's monthly basic wage for the first five years of service and 8.33% after that, according to the Emirates News Agency (WAM) announcement. Employees can add voluntary contributions.
Who runs it
At launch, Zurich Workplace Solutions was appointed administrator, Equiom master trustee and Mercer investment adviser. Members choose from a range of investment funds. Check your latest member statement for the current providers, because the account details you need for the FBAR come from it.
DEWS versus the mainland gratuity
Mainland UAE employers usually still owe an end-of-service gratuity, which is an unfunded promise paid on leaving. That difference changes the US answer, as the table below shows. Some mainland employers have also joined the optional federal savings scheme approved by UAE Cabinet Resolution No. 96 of 2023, and that scheme raises the same account-based questions as DEWS.
| US question | End-of-service gratuity (unfunded) | DEWS plan (funded) |
|---|---|---|
| FBAR | No account, so generally not reported | Generally reported as a foreign financial account |
| Form 8938 | Generally not a financial asset until paid | Reportable once thresholds are met |
| When US tax arises | When the gratuity is paid | Employer contributions can be taxable as made |
| PFIC exposure | None | Possible, through the investment funds |
Why DEWS plan FBAR reporting applies
The FBAR (FinCEN Form 114) covers financial accounts at foreign financial institutions in which a US person has a financial interest or signature authority. A DEWS member account is an investment account held at a regulated institution. The assets sit in a trust, but each member's share is allocated to them alone. Under the FBAR rules, a US person who holds more than half of the present beneficial interest in a trust's assets is treated as having a financial interest in its accounts.
The $10,000 aggregate test
The FBAR threshold is $10,000 across all your foreign accounts combined, at any point in the year, according to FinCEN. Your UAE salary account usually crosses it on its own. Once you file, every reportable account goes on the form, so DEWS must be listed even when its balance is small.
Deadline and valuation
The 2026 FBAR is due on 15 April 2027, with an automatic extension to 15 October 2027. Report the highest balance during the year in US dollars. The dirham is pegged at AED 3.6725 to the dollar, so conversion is simple, but see our guide to FBAR maximum account value for statement-based valuation.
Form 8938 for DEWS members abroad
Form 8938 is a separate IRS form, filed with your Form 1040. A funded foreign retirement or savings account is a specified foreign financial asset. However, the thresholds are much higher for taxpayers living abroad, according to the IRS Form 8938 instructions.
| Filing status (living abroad) | Value on last day of year | Value at any time in year |
|---|---|---|
| Single or married filing separately | More than $200,000 | More than $300,000 |
| Married filing jointly | More than $400,000 | More than $600,000 |
Our comparison of FBAR vs Form 8938 explains why many DIFC professionals file the FBAR every year but only reach Form 8938 as savings build.
No treaty, no deferral: the US-UAE gap
The United States has no income tax treaty with the UAE. That single fact makes DEWS harder than a UK pension for an American. There is no equivalent of Article 18 of the US-UK treaty to defer US tax on contributions or growth.
Employer contributions
A foreign employer-funded trust like DEWS is generally treated as a nonexempt employees' trust under section 402(b). Employer contributions are then included in your US income when they vest. Where DEWS contributions are vested from the start, they are US wages in the year paid. They are foreign earned income, so they can fall within the 2026 foreign earned income exclusion of $132,900 set by Rev. Proc. 2025-32 and confirmed on the IRS FEIE page.
Investment growth and PFICs
UK pension members escape Form 8621 through Treasury Regulation section 1.1298-1(c)(4), which requires a treaty-recognised pension fund. DEWS members cannot use that exception. If the trust is looked through to the member, non-US funds inside DEWS can be PFICs. Our guide to PFICs inside pensions sets out how that analysis runs.
Form 3520 relief may not fit
Rev. Proc. 2020-17 removes Form 3520 reporting for certain tax-favoured foreign retirement trusts. Its conditions include favourable treatment and information reporting under local tax law. A plan in a country with no personal income tax may struggle to meet them, so this needs a scheme-specific review.
Worked example: a compliance manager in the DIFC
The figures are illustrative. Daniel, a US citizen, has a basic monthly wage of AED 40,000 and a total package of AED 720,000 a year. He is in his third year of service, so his employer pays the 5.83% minimum.
The numbers
Daniel's employer pays AED 2,332 a month, or AED 27,984 a year, into DEWS. At AED 3.6725 to the dollar, that is about $7,620. His package is about $196,052, already above the $132,900 exclusion for 2026. Consequently, the DEWS contribution adds roughly $7,620 of taxable income, with no UAE tax to credit against it.
The reporting result
After three years, Daniel's DEWS balance is around AED 84,000 before growth, about $22,860. That alone exceeds the $10,000 FBAR threshold. He lists DEWS on every FBAR, but he does not reach the $200,000 Form 8938 threshold for a single filer abroad yet.
If you never reported DEWS
Missed DEWS reporting is common and usually fixable. If your returns were filed but the FBAR was not, the delinquent FBAR route may apply. If income was also missed, the IRS streamlined filing procedures are usually the right path. Since Bittner v. United States (2023), non-wilful FBAR penalties apply per report, not per account. Our guide to delinquent FBAR submission procedures explains the choice.
DEWS checklist for US citizens
- Download every annual DEWS statement since you joined, including the highest balance.
- List DEWS on the FBAR every year you file, alongside your UAE bank accounts.
- Track the Form 8938 thresholds for residents abroad as the balance grows.
- Add employer contributions to US wages where vested, then apply the FEIE.
- Have the funds reviewed for PFIC status before you add voluntary contributions.
- Record your DIFC start date, because the employer rate rises to 8.33% after five years.
For the wider picture of working in the emirate, read our guide on US citizens working in Dubai, and our US expat tax returns pillar for filing basics.
How Tranzesta can help
Tranzesta works with US citizens across the UAE, UK and US. We map DEWS and other UAE savings plans to the right US forms, fix missed FBARs, and run the PFIC and section 402(b) analysis before it becomes a problem. To get your DIFC savings reported correctly, book a consultation with our UAE desk.
Frequently Asked Questions
Do I report my DEWS account on the FBAR?
Yes, a US citizen should generally report a DEWS account on the FBAR. The DIFC Employee Workplace Savings plan holds an invested balance allocated to the member at a regulated institution. If your foreign accounts together exceed $10,000 at any time in the year, every account, including DEWS, goes on FinCEN Form 114.
Is DEWS reported on Form 8938?
DEWS is a specified foreign financial asset for Form 8938, but you only file once you exceed the thresholds. For a single filer living abroad, those are more than $200,000 on the last day of the year or more than $300,000 at any time. Married couples filing jointly abroad have thresholds of $400,000 and $600,000.
Are DEWS employer contributions taxable in the US?
DEWS employer contributions can be taxable US income when they vest, because a foreign employer-funded trust is generally a nonexempt employees' trust under section 402(b). They count as foreign earned income. As a result, they can be covered by the foreign earned income exclusion of $132,900 for 2026 if your salary leaves room.
Does the US-UAE tax treaty protect DEWS savings?
No, there is no income tax treaty between the United States and the UAE. US citizens in the DIFC therefore get no treaty deferral on DEWS contributions or growth. This is a key difference from UK pensions, which benefit from Article 18 of the US-UK treaty.
Can DEWS investment funds be PFICs?
Funds held inside DEWS can be passive foreign investment companies if the plan is looked through to the member. The PFIC exception for pension funds in Treasury Regulation section 1.1298-1(c)(4) requires a tax treaty, which the US and UAE do not have. A scheme-specific review is the safest way to confirm whether Form 8621 is needed.
What is the minimum DEWS employer contribution?
The minimum DEWS employer contribution is 5.83% of the employee's monthly basic wage for the first five years of service. After five years, it rises to 8.33%. These rates mirror the end-of-service gratuity that DEWS replaced for DIFC employees from 1 February 2020.
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