New tax rule

New UAE Tax Residency Rule

Cabinet Decision No. 85 of 2022 – Issued 2 Sept 2022   Brief overview The new decision effectively provides us with guidelines on determining the tax residency for both natural and legal persons. It also outlines the requirements and conditions for identifying a person as a Tax Resident in the UAE.   Publication and Enforcement The decision shall be effective from March 01, 2023.   Coverage 1. Natural persons shall be considered UAE tax residents if they: Have their primary residential place and financial


Over Dh60,000 Currency, Assets, and Jewelry have to be declared

It is mandatory for all passengers entering or leaving the UAE with more than Dh60,000, or equivalent amounts in currency, financial assets, precious metals, or stones, to declare them to customs. Families members over 18 years old may carry an amount not exceeding Dh60,000 or the equivalent in foreign currency without disclosing it to customs officers under the UAE’s disclosure system. The cash and other valuable items carried by passengers less than 18 years of age, including children and adolescents, are added


Invoices worth Dh10,000 or more require MoFAIC attestation

A new rule by the UAE Ministry of Foreign Affairs and International Cooperation (MoFAIC) states that companies would be required to attest import invoices with a value of Dh10,000 and above and the attestation of invoices will be done electronically.   Key Points: This will come into effect on February 1, 2023. There will be an attestation cost of Dh150 per commercial invoice. Customers will have a grace period of 14 days after the declaration of goods to comply with the attestation. Businesses that


Unemployment Insurance Scheme

What is the ‘Unemployment Insurance scheme’? In the event that a UAE employee working in the Private sector or under the Federal government loses their job as a result of termination by their employer, they will receive the benefits of Unemployment Insurance (60 percent of their average basic salary, calculated on an average of the six months leading up to unemployment), which is a form of insurance or social security. An insurance premium will be paid by the worker

Gold sector

UAE announces VAT changes in Gold and Diamond sector

The Ministry of Finance (MOF) announced that the tax registrants supplying Gold are not required to impose VAT on the supply of Gold and products which mostly consist of Gold, if the conditions of Cabinet Decision No. 25 are met. In such instances, VAT in respect of the Gold is accounted for under a special reverse charge mechanism which requires the registered recipient to account for VAT on the supply instead of the supplier. Based on a new decision by the


UAE’s latest bet on tech: a ministry in the metaverse

The United Arab Emirates, which already boasts the world’s tallest skyscraper and has launched a bold Mars mission, now hopes to become a pioneer in the depths of the metaverse. In a project launched at Dubai’s gleaming Museum of the Future, it announced that the UAE’s economy ministry was setting up shop inside the immersive virtual world that is now taking shape. The metaverse is an online world where users will eventually be able to game, work and study, its proponents say

Power transmission

Abu Dhabi power transmission project signs $3.2 billion financing

  Abu Dhabi Offshore Power Transmission Company has secured more than $3.2 billion in financing with export credit agencies and banks for an offshore electricity transmission project, the Japan Bank for International Cooperation said in a statement. The financing is to build and operate a high-voltage direct current offshore power transmission system linking two offshore production facilities owned by state-controlled oil giant Abu Dhabi National Oil Company (ADNOC) to Abu Dhabi’s onshore grid. “The project will receive payment of power transmission charges from


UAE firms resisting pay-rise demands as inflation climbs

  Companies in the United Arab Emirates are largely resisting demands for higher pay to offset the impact of inflation, according to a survey that showed two-thirds of companies have received requests for salary increases. Mercer, in its 2022 UAE Inflation Spot Survey of 200 international and local firms, said only 16% of them have taken some action, like one-time lump-sum payments, off-cycle salary bumps or housing allowance increases, as they look to retain talent. The Central Bank of the UAE projects inflation


Dubai court orders man to pay $1.25 billion to Denmark in tax case

  A British man accused by Denmark of masterminding a USD 1.7 billion tax fraud has been ordered by a Dubai court to pay Copenhagen’s tax authority USD 1.25 billion, court filings seen on Friday show, just days after another Dubai court rejected an extradition order for him. The order by the Dubai Court of Appeal against Sanjay Shah comes as part of a civil case filed four years ago by Denmark’s tax authority, who have been pursuing him as part of


UAE economy grew 8.2% in Q1, central bank estimates

  The United Arab Emirates’ economy grew by an estimated 8.2% in the first quarter, buoyed by higher oil production, the central bank said on Wednesday. Real gross domestic product (GDP) is expected to grow 5.4% this year and 4.2% next year, the central bank said. There was a high probability of stronger growth due to higher oil production and a government pledge to double the manufacturing sector’s size by 2031. Hydrocarbon GDP climbed an estimated 13% in the first quarter, when