9 New Regulations That the UAE Will Implement in 2023 You Need To Know About

Introduction:

As a dynamic and progressive nation, the United Arab Emirates (UAE) continues to evolve its legal framework to enhance the quality of life for its residents. In 2023, several significant changes have been introduced, from tax reductions to new social security schemes, making the UAE an even more attractive destination.

In this article, we will delve into these 9 new regulations introduced in the UAE in 2023 that you should be aware of.

9 New Regulations That the UAE Will Implement in 2023

Tourism Tax Reduction in Abu Dhabi:

The Department of Culture and Tourism in Abu Dhabi has recently announced a substantial change in government fees within the tourism sector. Effective September 1, 2023, the tourism fee for guests has been reduced from six percent to four percent. Additionally, the municipality fee for guests has been abolished, providing tourists with more cost-effective options for their stay in Abu Dhabi.

Streamlined Emirates ID Updates:

Updating your Emirates ID to reflect changes in personal details, occupation, or employer has become more convenient. Residents can now make these changes online through the official website or the smart application, using their UAE Pass login details. This simplifies the administrative process and ensures accurate identification of residents.

Digital Travel Ban Lifting:

In a move to streamline travel ban removal, Dubai Public Prosecution has introduced a digital service. This service allows individuals to make payments online, leading to an automatic lifting of their travel restrictions after court approval. This initiative aligns with the ‘Services 360’ policy, aiming to provide smart solutions for administrative tasks and reduce the need for in-person visits to government service centers.

Involuntary Loss of Employment (ILOE) Scheme:

Commencing on January 1, 2023, the ILOE Scheme offers a form of social security, providing workers in the UAE – both in the private and public sectors – with up to three months of compensation if they lose their jobs. It is mandatory for all employees to enroll in this scheme by October 1, 2023. Failing to do so within the grace period will result in fines imposed by the Ministry.

Removal of Grace Period for Dubai Visit Visas:

Previously, visitors in Dubai enjoyed a 10-day grace period after the expiry of their tourist visas. However, this grace period has been eliminated, and overstay fines of Dhs50 per day are now immediately imposed for those who exceed their visa validity.

Extended UAE Work Permit:

Work permits for employment in the UAE have been extended from two years to three years, as per the announcement by the Federal National Council. This change aims to reduce the costs associated with acquiring work permits, benefiting both employers and employees.

30% Tax Removal on Alcohol:

Effective January 1, 2023, the 30% tax on alcohol purchases has been removed, resulting in reduced prices for consumers. Additionally, obtaining an alcohol license is now free, simplifying the process for residents and tourists.

Significant Updates to Marriage Laws:

The new Federal Personal Status Law permits non-Muslim couples to marry in a non-Sharia legal process. It eliminates the need to prove fault or justify the need for divorce, making the process smoother and faster. Joint and equal custody of children is automatically granted in divorce cases, and non-Muslims can now register wills concurrently with their marriage certificates.

New Corporate Tax Law:

Starting from the financial year in June 2023, businesses in the UAE will be subject to a corporate tax. This imposes a standard rate of 9% on taxable profits exceeding Dhs375,000, with profits below this threshold taxed at a zero percent rate to support small businesses and startups.

Conclusion:

These nine new rules introduced in the UAE in 2023 signify the country’s commitment to providing a better quality of life for its residents and enhancing its status as a global destination. These changes reflect the UAE’s dedication to creating a more inclusive and prosperous environment for all. Stay informed and take advantage of these new regulations to make the most of your time in this ever-evolving nation.

FAQs

Here are some frequently asked questions (FAQs) about the nine new rules introduced in the UAE in 2023:

1. What is the significance of reducing tourism tax in Abu Dhabi?

The reduction in tourism tax makes it more affordable for tourists to stay in Abu Dhabi. It helps boost the tourism sector and provides cost savings for visitors.

2. How can I update my Emirates ID with the new procedures in 2023?

You can update your Emirates ID online through the official website or the smart application using your UAE Pass login details. Alternatively, you can visit a customer happiness center or an approved typing center.

3. Can you explain the new digital travel ban lifting process?

The new digital service introduced by Dubai Public Prosecution allows individuals with travel bans to make payments online, leading to the automatic removal of travel restrictions upon court approval. This digital process aims to streamline the procedure and reduce in-person visits.

4. What is the Involuntary Loss of Employment (ILOE) Scheme?

The ILOE Scheme is a form of social security introduced in 2023 that provides compensation to workers, both in the private and public sectors, for up to three months if they lose their jobs. All employees are required to enroll in this scheme to be eligible for compensation.

5. What are the consequences of not enrolling in the ILOE Scheme within the grace period?

Failing to enroll in the ILOE Scheme within the grace period will result in fines imposed by the Ministry, with a fine of Dhs400 for failure to subscribe and Dhs200 for not paying the prescribed insurance premiums for more than three months.

6. How have the rules changed regarding Dubai visit visas in 2023?

The 10-day grace period that was previously available after the expiry of Dubai tourist visas has been removed. Any overstay beyond the visa’s validity will now incur a fine of Dhs50 per day.

7. Can you explain the extension of the UAE work permit from two years to three years?

The UAE work permit, a requirement for employment in the UAE, has been extended from a two-year validity to three years. This extension is expected to reduce the costs associated with obtaining work permits, benefiting both employers and employees.

8. What is the impact of the removal of the 30% tax on alcohol in the UAE in 2023?

The removal of the 30% tax on alcohol purchases in 2023 has led to reduced prices for consumers. Additionally, obtaining an alcohol license is now free, making it easier for residents and tourists to purchase and consume alcohol.

9. How have the marriage laws been updated in the UAE in 2023?

The new Federal Personal Status Law allows non-Muslim couples to marry in a non-Sharia legal process, simplifying the marriage procedure. It also streamlines divorce proceedings, allows for joint custody of children, and enables non-Muslims to register wills simultaneously with their marriage certificates.

10. What does the new corporate tax law mean for businesses in the UAE in 2023?

Starting from the financial year in June 2023, businesses in the UAE will be subject to corporate tax. This imposes a standard rate of 9% on taxable profits exceeding Dhs375,000, with profits below this threshold taxed at a zero percent rate to support small businesses and startups.