Four UAE Laws Introduced in 2023 You Should Know
The UAE strives to make it easier for residents to enjoy life in the country with updated laws each year. The country announced several laws back in 2022 to be effective from 2023, here are four of the new rules introduced in 2023.
Involuntary Loss of Employment Scheme
The new Unemployment Insurance Scheme or Involuntary Loss of Employment Scheme went into effect on January 1, 2023. It allows employees in the UAE to sign up for some kind of social security if they have been laid off. It's mandatory for all employees to signup to this scheme. However, those who work under free zones are exempt.
The initiative will be accessible to employees of the federal government and the private sector, and subscription to the scheme is compulsory, according to the Ministry of Human Resources and Emiratisation (MOHRE).
Employees will be compensated with a salary for up to three months in the case of job loss once they are eligible to receive compensation under the scheme.
Learn more about it here.
New Corporate Tax Law
The UAE issued Federal Decree-Law No. 47 of 2022 on Taxation of Corporations and Businesses (the “Corporate Tax Law”). Businesses will become subject to UAE Corporate Tax (“Corporate Tax”) from the beginning of their first financial year which starts on or after 1 June 2023.
The UAE’s Corporate Tax regime will levy a standard rate of 9 percent for taxable profits exceeding AED375,000. Profits up to and including that threshold will be taxed at a 0 percent rate to support small businesses and start-ups.
More details are here.
Dropping a 30% Tax on Alcohol
Dubai has suspended the 30% tax on the sale of alcohol in Dubai for one year. Suspension of the tax began on January 1st, 2023 and will continue until December 31st, 2023, in what has been described as a trial period.
Restaurants, bars and hotels purchasing alcohol in Dubai will pay 30% less than they have in previous years.
Read the full story here.
Marriage Law for Non-Muslims
he UAE announced a Federal Decree-Law on Personal Status to all non-Muslim foreigners in the country, to be applied from 1st February 2023.
The Decree-Law provisions regulate the marriage conditions and the procedures of contracting and documenting the marriage before the competent courts. The Decree-Law specifies the procedures of divorce that can be initiated jointly or unilaterally.
It organizes the procedures for settling the financial claims after divorce and the arrangement of joint custody for the children. Moreover, the Decree-Law organises the procedures for inheritance and testaments (wills) and proofs of paternity.
Click here to read more about the law.