6 New Rules introduced in the UAE in 2023
Each year, the UAE makes significant changes to its laws to make it easier for residents to enjoy life in Dubai. From non-Sharia compliant marriages to mandatory unemployment insurance, here are six new rules introduced in 2023 you should know about:
Involuntary loss of employment (ILOE) scheme
The Involuntary Loss of Employment (ILOE) Scheme came into effect as of January 1 2023 and is a form of social security that will provide workers with up to three months of compensation if they lose their jobs. The scheme applies to all workers in the private and public sector, and everyone needs to be enrolled by Friday June 30, 2023. The compensation is calculated at up to 60 per cent of the employee’s salary.
According to the Cabinet Resolution No. 97 of 2022 , UAE employees that fail to subscribe to the insurance within the grace period will be required to pay a fine of Dhs400 imposed by the Ministry, and a fine of Dhs200 in case the insured fails to pay the prescribed insurance premiums for more than three months.
Removal of grace period for Dubai visit visas
Visitors will no longer be given a 10-day grace period after the expiry of their Dubai tourist visas, the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) confirmed to The National on Wednesday, May 31. Previously, tourists would have 10 extra days from the date their visa expired to stay in the emirate before overstay fines were imposed. This means the grace period is no longer applicable and anyone who overstays their Dubai visit visa will be immediately fined Dhs50 per day.
UAE work permit extended from two years to three years
Work permits are a requirement for anyone undertaking employment in the UAE. But the current two-year work permit is set to be extended to three-years, according to the Federal National Council (FNC). As announced in May 2023, The move is set to reduce the costs associated with getting work permits. All work permits are issued by the UAE’s Ministry of Human Resources and Emiratisation (MOHRE), although a timeline for the roll out wasn’t given.
30 per cent tax removed from alcohol
The 30 per cent tax was removed from all alcohol purchases in 2023, effective from Sunday, January 1 2023. Liquor stores African & Eastern and MMI immediately dropped their prices for consumers buying from shops.
Alcohol licenses are also now free to obtain since Sunday, January 1. Those looking to apply will just need their Emirates ID for residents, or passport for tourists. The mandatory alcohol license for all non-Muslims was previously Dhs270 per year.
Huge updates to marriage laws
The new Federal Personal Status Law allows non-Muslim couples to marry in a non-Sharia legal process. Since February 2022, non-Muslim couples in Abu Dhabi have been able to tie the knot in the civil court, in a similar way to a registry office wedding in the UK or Europe. From February 1, 2023 this became a UAE-wide law.
As per the new decree, either spouse will now be able to ask to the court to end the marriage, without proving a party as at fault, or justify the need to end the marriage. Divorces may be granted after one hearing, and it won’t be required to go through family guidance counselling, nor meditation sessions that were previously required.
If a divorcing couple has children, joint and equal custody of the children will automatically be granted until the children are 18 years old. Where there are custody disputes, the court can take further action and involvement, with consideration always given to the child or children’s best interests. If witness testimony is required, a woman’s testimony to be equal to that of a man.
The new law allows non-Muslims to register wills at the same time as their marriage certificate, which will allow them to give their property to whoever they wish.
New corporate tax law
Effective from the financial year starting on or after June 2023, businesses in the UAE will be subject to corporate tax, which will impose a standard rate of 9 per cent 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.
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