The UAE welcomed 2022 with quite a few reforms, visa and labour. So, as the country braces to ring in 2023 it won’t be inappropriate to talk about certain new laws that would be introduced in the new year. These pertain to Emiratisation targets, corporate tax, insurance against job loss etc. Hence, today we will unleash these for readers’ sake.
Job Insurance
From next year onwards, it will be a must for employees to buy insurance against job loss. This applies to the ones working in private as well as federal government departments. However, there are certain exemptions as well. This will not be binding for investors and entrepreneurs who are self-employed, domestic workers, temporary workers, minors (below the age of 18) and pensioners who have joined a new company.
Tax For Corporates
This is all set to come into force from June next year. From 2023 onwards companies clocking a yearly profit of AED 3,75,000 will have to pay a tax of 9 percent. The cess will apply only to the profit segment, not to the total turnover of the company. The law will not apply to the salary of the residents. However, those on the freelance visa will have to pay the corporate tax if their income goes beyond the prescribed limit. Similarly, it will not apply to income accrued via bank deposits, saving programmes and investments, dividends etc.
Emiratisation
This topic has been gaining currency for a while and come 2023 it will be binding upon entities employing over 50 employees to meet the Emiratisation target of 2 percent or pay a penalty. A monthly fine of AED 6,000 will be slapped for every UAE national who has not been employed and the amount has to be paid upfront as well. Also, if a UAE citizen resigns from a job, then that vacancy has to be filled with another UAE citizen.
Personal Status Law
From February 2023 onwards, a new personal status law on all non-Muslim foreigners will be effective. The new law will encompass the marriage conditions and the procedures of contracting and documenting the marriage before the relevant courts. Also, non-Muslim foreigners could agree to bring into effect other laws on family or personal status in force in the UAE rather than the provisions of this Decree-Law.
Ban On Single-use Plastic
The emirates of Ajman and Umm Al Quwain are preparing to eliminate single-use plastics from January 2023 onwards. The retail outlets are supposed to levy 25 fils for each plastic bag that shoppers use from 2023 onwards. The outlets in Abu Dhabi, Dubai and Sharjah are already imposing 25 fils per bag on consumers to curb the usage of single-use bags and plastic in the country.
