WellTax Blog

New rules introduced in UAE in 2023

December 12, 2023

Residents in the UAE have recently witnessed a series of significant updates that aim to streamline various aspects of their life. From the abolition of the alcohol tax to the introduction of a new corporation tax, here are some noteworthy changes introduced in the UAE in 2023.

Reduced tourism tax in Abu Dhabi: Abu Dhabi’s Department of Culture and Tourism has announced a reduction in tourism taxes, including a slash in the tourism fee for guests of accommodation facilities and the elimination of certain municipality fees starting from September 1, 2023.

Updating the Emirates ID online: Residents now have the convenience of updating their Emirates ID details online, whether it involves changes in personal information or residency details, thanks to the introduction of streamlined procedures.

New procedure to remove travel bans: Dubai Public Prosecution has launched a new digital service that will allow defendants to pay court fines online and automictically lift travel bans, aligning thus with the government’s ‘Services 360’ initiative.

Involuntary Loss of Employment (ILOE) Scheme: The Involuntary Loss of Employment (ILOE) Scheme, effective from January 1, 2023, offers workers up to three months of compensation if they lose their jobs, mandating all employees to enrol by October 1, 2023, to avoid fines.

Grace period for Dubai visit visas revoked: The grace period for Dubai visit visas has been eliminated, with visitors now facing fines for overstaying their visas, as confirmed by the Federal Authority for Identity, Citizenship, Customs, and Port Security (ICP).

Work permits extended from 2 to 3 years: The duration of work permits has been extended from two years to three years, aiming to reduce associated costs, according to the Federal National Council (FNC).

Abolition of the Alcohol tax: The removal of the 30 per cent tax from alcohol purchases has resulted in immediate price reductions, while alcohol licenses are now obtainable free of charge for both residents and tourists.

New marriage laws: The new Federal Personal Status Law allows non-Muslim couples to marry through a non-Sharia legal process, streamlining the divorce process and ensuring equal custody rights for children.

Introduction of the corporation tax: A new corporate tax law, effective from the financial year starting on or after June 2023, will impose a standard rate of 9 per cent on taxable profits exceeding Dhs375,000, while offering support for small businesses and startups by taxing profits up to this threshold at a zero percent rate and also providing other tax advantages through the Small Business Relief.

For an initial consultation on the UAE market, email us at info@well-tax.com.

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