The United Arab Emirates (UAE) has always been a dynamic nation, constantly evolving its laws to enhance the quality of life for its residents. The year 2023 was no exception, with nine legal changes introduced that have far-reaching implications for both residents and visitors.
Revamping Tourism Tax in Abu Dhabi
The Department of Culture and Tourism in Abu Dhabi announced a reduction in tourism fees from six percent to four percent, effective from September 1, 2023. Additionally, the municipality fee of Dhs15 per room per night was abolished, along with the six percent and four percent municipality fees applied to hotel restaurants.
Streamlining Emirates ID Updates
The process of updating Emirates ID details has been simplified. Residents can now make changes such as name, occupation, employer, passport details, and nationality online. Any changes to residency information will necessitate a new Emirates ID card replacement, which can be obtained through the official website or approved typing centres.
Digital Solution for Lifting Travel Bans
Dubai Public Prosecution launched a digital service to lift travel bans imposed due to criminal cases. Individuals can make an online payment and, upon court approval, their travel restrictions will be automatically lifted.
Introduction of Involuntary Loss of Employment Scheme
The Involuntary Loss of Employment (ILOE) Scheme, effective from January 1, 2023, provides up to three months of compensation at 60 per cent of the employee’s salary for those who lose their jobs. This scheme applies to all workers in the private and public sector.
Removal of Grace Period for Dubai Visit Visas
The Federal Authority for Identity, Citizenship, Customs and Port Security confirmed the removal of the 10-day grace period after the expiry of Dubai tourist visas. Overstaying tourists will be immediately fined Dhs50 per day.
Extension of UAE Work Permit
The Federal National Council announced that the two-year work permit would be extended to three years, reducing the costs associated with obtaining work permits.
Elimination of Alcohol Tax
The 30 percent tax on all alcohol purchases was removed effective from January 1, 2023. Additionally, alcohol licenses became free to obtain for residents and tourists.
Revolutionizing Marriage Laws
The new Federal Personal Status Law allows non-Muslim couples to marry in a non-Sharia legal process. The law also introduces significant changes to divorce proceedings and child custody rules.
Introduction of Corporate Tax
From June 2023, businesses in the UAE will be subject to a corporate tax of 9 percent on taxable profits exceeding Dhs375,000. Profits up to this threshold will be taxed at a zero percent rate to support small businesses and startups.
These nine new rules mark a significant shift in the UAE’s legal landscape, reflecting the nation’s commitment to progress and adaptability.