The Ministry of Finance, UAE has released a Public Consultation Document on Corporate Tax

On April 28, 2022, the Ministry of Finance (MoF) of the United Arab Emirates (UAE) release a Public Consultation Document on the proposed UAE Corporate Tax regime to obtain input from stakeholders.

Recognizing the importance of consultation with the business community and other interested stakeholders the MoF has requested the stakeholders to send in their clear and concise comments by 19 May 2022, focusing on aspects of the proposed Corporate Tax regime that may help to reduce compliance cost and complexity, and improve certainty for both the tax administration and taxpayers alike. Ministry also invited comments on areas that are otherwise not covered in this document.

UAE Tax authority announces whistleblower program

The Federal Tax Authority (FTA) has launched its ‘whistleblower’ programme for tax violations and evasion The new program, named ‘Raqeeb’ is a reporting mechanism that aims enhance transparency and competitiveness in the field of doing business, raise tax compliance rates, and boost tax awareness and society’s confidence in the tax system.

Effective from April 15, the programme allows FTA to receive reports from individuals on tax evasion cases, tax-related fraud and violations of tax legislation. It also enables the authority to verify the reports and grant monetary rewards to informants if the report leads the authority to collect tax amounts worth more than Dhs50,000.

The FTA’s whistleblowing program applies to excise and valued-added taxes at present. The program could take on more significance in 2023 when the UAE introduces a corporate tax for the first time.

UAE Cabinet approves establishment of UAE Council for Digital Economy

The UAE Cabinet met in second week of April 2022 and approved a new Digital Economy Strategy that aims to increase the contribution of this sector to the GDP to 20 percent over the next 10 years.

The meeting was chaired by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai and was held at Qasr Al Watan Abu Dhabi.

The UAE Digital Economy Strategy aims to double the contribution of the digital economy to the GDP from 9.7 per cent to 19.4 per cent within the next ten years, according to state news agency WAM.

The strategy includes more than 30 initiatives and programmes targeting six sectors and five new areas of growth. It will define the digital economy, with a unified mechanism for measuring its growth while measuring its indicators periodically.



The Cabinet also approved the establishment of the UAE Council for Digital Economy chaired by Omar bin Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Teleworking Applications.

The UAE Council for Digital Economy will support the aim to double the contribution of the digital economy to the UAE’s GDP in the year 2031 and enhances the implementation of the Digital Economy Strategy initiatives in all economic sectors.

Among the several resolutions adopted during the meeting was the decision in the form of cabinets approval to adopt an agreement to link the payment systems of the Gulf Cooperation Council (GCC) countries.

FTA issued clarification on gold making charges

The Federal Tax Authority (FTA) in UAE has recently issued a public clarification – VATP029 on Gold Making Charges confirming that the suppliers of the gold jewellery are required to pay VAT on the making charges. This clarification only applies to gold and products consisting mostly of gold, that do not qualify for zero-rating. These goods are collectively referred to as “Gold Items”.

Public Clarification on Missing or deficient Excise Goods released

The United Arab Emirates (UAE) Federal Tax Authority (FTA) has published an Excise Tax Public Clarification (EXTP007) on Excise goods that are deficient or missing and the process for the destruction of Excise goods within a Designated Zone (DZ).

As per the clarification, the FTA needs to be notified of the deficiency or shortage within 30 days of discovering the deficiency through a declaration along with supporting documents. An approval from competent authority is also required to be provided in case of destruction of goods that were expired and can be destroyed only on sanction from the FTA.

The scenarios of deficiency, procedure for filing the Declaration and the requirements of supporting documents have been detailed in the clarification. It has also been clarified that there is no ability under the Executive Regulation for businesses to secure relief on products which have been subject to excise tax previously but are then considered as ‘wastage’.

FTA issued clarification regarding time limit for claiming refund of VAT by tourists

FTA in its Decision No. 4 of 2022 has decided that the operator of the Tax Refunds for Tourist Scheme shall set a one-year time limit for tourists to claim the refund of Value Added Tax through bank card or by cash, from the date of verification of the refund request.

Ministry of Economy released circular in connection with AML/CFT Compliance for Licensed Real estate brokers and agents

The UAE Ministry of Economy has on 24 June 2022 released Circular No. 05/2022 instructing all real estate brokers and agents to inter alia submit a ‘Real Estate Transaction Report’ (“REAR”) via the Financial Intelligence Unit’s (“FIU”) goAML platform in following circumstances:

Cash transaction equal to or exceeding AED 55,000

Method of payment is virtual asset

In case of funds used for transaction has been converted from a virtual asset.

Chilean Senate Approves Tax Treaties with United Arab Emirates, alongwith India and the Netherlands

On 8 June 2022, the Chilean Senate (upper house of Congress) approved the laws for the ratification of the pending tax treaties with the United Arab Emirates along with India and the Netherlands. The laws were approved by the Chamber of Deputies (lower house) on 3 March 2022.

The income tax treaty between Chile and the United Arab Emirates was signed on 31 December 2019. The treaty will enter into force once the ratification instruments are exchanged and will generally apply from 1 January of the year following its entry into force.

Comprehensive Economic Partnership Agreement between India and the United Arab Emirates [UAE] has Entered into Force

The UAE-India CEPA was signed on 18 February 2022 and entered into force officially on 1 May 2022. The immediate benefits will include:

Simpler customs procedures – the process will be much smoother and near-frictionless

Clear and transparent rules on trade
Lower tariffs
Enhanced market access
Government procurement opportunities
Greater information and guidance for SMEs

UAE exporters can now benefit from greater market access through preferential tariff rates. Some products will be subject to zero tariffs from day one - others will see them reduced over time. The Ministry of Economy website lists the tariff classification (based on HS code of the product), This is help business to determine the preferential tariff rate for their product and estimate the charges.

We would like to start the 2022 series of our articles from short review of main tax features that should be taken into consideration by every foreign consultant or foreign businessman who works with Russia.

Tax reporting period is started

End of winter and spring is period when Russian companies and individuals are liable to submit their financial statements and tax returns

All Russian tax residents are liable to submit the following forms not later than April 30:

CFC reporting

Russian legal entities and individuals who own or control CFC are liable to submit the following forms:

CFC notification on control in respect of CFC and ownership structure; deadline is 30 of April (failure to file a notification leads penalty – 5800 EUR)
CFC financial statements in respect of 2020 with audit opinion if there is no DTT between Russia and country of CFC; deadline is 30 of April (failure to file a notification leads penalty – 11 600 EUR)
Notification about any changes in the structure of CFC ownership, deadline is 3 months from corresponding change (failure to file a notification leads penalty – 580 EUR)

Please note that the Russian CFC rules treat as CFC not only legal entities but also trusts and foundations

Personal income tax reporting

Individuals who are recognized as tax resident upon the end of 2021 are liable to submit personal income tax return reflecting all foreign and Russian income including CFC income. Deadline is 30 of April (failure to file a tax return leads penalty – 30% of amount due; unpaying tax leads to penalty – 20% / 40% of amount due)

VAT on electronic services

Non-Russian company which provides software, multimedia contents or online services to the Russian clients (individuals or legal entities) should be registered in Russian tax authorities and pay Russian VAT at the rate 20%. This VAT is deductible by the Russian customers – legal entities.

Our team is able to help with tax registration at the Russian tax authorities and with submission of VAT tax returns.

Russian tax benefits for IT companies

Russia provides tax benefits for IT companies:

CIT – 3% instead of 20% (general CIT rate), 1% in some regions

Social contribution tax: 7,6% of gross salary

For small companies: full VAT exemption, CIT 6% from gross income or 15% from net income

Condition to apply tax benefits: average number of employees should be not less than 7 persons

Implementation of 2022 Edition of the WCO Harmonized System (HS) Nomenclature

The Unified Commodity Description and Coding Table of the GCC States has come into force from 16 February 2022 on the basis of the Harmonized System - Edition 2022. The Federal Decree No. (85) of 2007 of the Common Customs (Regulation) Law for the GCC states has been repealed and replaced by the Federal Decree Law No. (15) of 2022.

Dubai issues First Law Regulating Virtual Assets

The Emirate of Dubai has issued Dubai Law No. 4 of 2022 dated 28 February 2022 on the Regulation of Virtual Assets in the Emirate of Dubai (“Dubai Virtual Assets Law” or the “DVAL”).

The DVAL will become effective on its publication in the Official Gazette. Its scope will be limited to authorising the conduct of activities relating to virtual assets in the Emirate of Dubai only (including free zones and special development zones but excluding the Dubai International Financial Centre).

The law establishes a separate authority called the “Dubai Virtual Assets Regulatory Authority” (the “VARA”) to oversee the regulation and authorisation of virtual asset related activities in Dubai. VARA will report into the Dubai World Trade Centre (“DWTC”)

Any person who requires an “authorisation” from VARA to conduct virtual asset services, must operate in the Emirate of Dubai and must obtain a trade licence from the relevant commercial authority in Dubai.

The Ministry of Human Resources & Emiratisation (“MOHRE”) has announced an overhaul to the labour laws in the UAE

The new UAE Labour Law (Federal Decree Law No. 33 of 2021) (“New Law”), which came into effect as of 2 February 2022 (“Effective Date”), seeks to address changes in the work environment, align UAE labour relations with international best practices, and recognise the need for atypical and/or flexible working structures. The New Law has replaced Federal Law No. 8 of 1980, as amended (“Original Law”) in its entirety, and it is the most significant amendment to UAE labour legislation since the Original Law’s enactment.

The key amendments inter-alia include changing the existing unlimited contracts to limited contracts by 1 February 2023.

UAE Cabinet Approves Pending Tax Treaty with the Democratic Republic of the Congo

On 28 February 2022, the United Arab Emirates Cabinet approved the treaty, signed 12 October 2021 with the Democratic Republic of the Congo.

Tax Treaty between Guyana and the UAE Signed

As reported by Newsroom Guyana, the agreement – Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital – was signed on 24 March 2022.

As part of this new agreement too, a specific carve-out was made for oil and gas.

Tax Treaty between Antigua and Barbuda and the UAE has Entered into Force

According to an update from the UAE Ministry of Finance(list of Tax Treaties) , the income tax treaty signed on 15 January 2017 with Antigua and Barbuda entered into force on 24 February 2022.

The UAE Ratifies Pending Protocol to Tax Treaty with Ukraine

According to an update from the UAE Ministry of Finance (list of Tax Treaties), the United Arab Emirates Cabinet approved the pending protocol to the 2003 income and capital tax treaty with the Ukraine on 31 January 2022.

Chile Lower House Ratifies Tax Treaties with the United Arab Emirates

The Chile Lower House of Parliament on 3 March 2022 adopted the ratification law bills regarding the tax treaty signed between Chile and the United Arab Emirates on 31 December 2019 (Bill No.

Notice on Temporary Suspension of Export and Re-export of wheat and wheat flour

The export or re-export of wheat and wheat flour originating from the Republic of India, which was imported after May 13, 2022 has been temporarily banned vide Customs Notice No. (06/2022) issued on 30/06/2022.

Companies wishing to export / re-export wheat and wheat flour must submit a request to the Ministry of Economy to obtain permission to export outside the UAE along with supporting documents to verify the origin of the shipment.

The permit is valid for only 30 days from issuance and must be submitted to Dubai Customs via electronic clearance systems.

Amendment of Decision No. 3 of 2021

The Federal Tax Authority has amended Decision No. 3 of 2021 and released updated Decision No. 3 of 2022 on Implementing the marking of tobacco and tobacco products scheme.

This update specifies prevention of supply, transfer, storage or possession of cigarettes, electrically heated cigarettes and water pipe tobacco in the State (Local Market, Arrival and Departure Terminals) using marks with the old design from 31 December 2023.

Democratic Republic of the Congo Approves Pending Tax Treaty with the UAE

On 8 July 2022, the Cabinet of the Democratic Republic of the Congo approved the ratification of the pending income tax treaty with the United Arab Emirates.

UAE to introduce new gold import rules

The UAE will introduce a new set of regulations on gold imports in line with international rules that seek to thwart money laundering and the financing of terrorism and illegal organisations.

The Regulations, drafted in accordance with OECD guidance on gold imports will come into effect from January 2023. They have been drafted in accordance with guidance from the Organisation for Economic Co-operation and Development (OECD) and its corresponding protocol for gold.

Dubai issues decree to regulate the grant of ‘Musataha’ rights on use of commercial lands

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued Decree No. (23) of 2022 regulating the grant of ‘Musataha’ rights on commercial lands in Dubai.

The Decree regulates the use of commercial lands in Dubai by granting the right of ‘Musataha’ to develop real estate projects.

As per the Decree, the ‘Musataha’ agreement creates a real property right that entitles its holder to construct a building or invest in, mortgage, lease, sell, or purchase a plot of land belonging to a third party for a period of up to 35 years with an extension upto max of 50 years.

The holder of the agreement has to abide by a number of rules and regulations.

The UAE to Introduce Fines for Failure to Comply with the Emiratisation Quota

From January 2023, private sector companies with more than 50 employees that do not reach the Emiratisation quota will be subject to fines.

The penalties and incentives shall be based on the size of the establishment and extent of meeting Emiratisation criteria.

UAE and France sign Comprehensive Strategic Energy Partnership

On July 19, 2022, His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates and Ruler of Abu Dhabi signed two agreements in Paris.

The first, a Comprehensive Strategic Energy Partnership (CSEP), which focuses on enhancing energy security, energy affordability, decarbonisation and climate action, ahead of the COP28. The 28th session of the Conference of the Parties (COP28) is set to take place in the UAE in 2023, and

The second is a strategic partnership agreement between Abu Dhabi National Oil Company (ADNOC) and TotalEnergies to explore new opportunities for growth across the energy value chain.

Goods supplied in a designated zone & connected shipping or delivery services in the UAE

The Federal Tax Authority (‘FTA’) has issued a Public Clarification (VATP027) - Goods Supplied in a Designated Zone and Connected Shipping or Delivery Services on 30 October 2021.

This latest Public Clarification aims to:

Avoid potential double taxation on goods supplied from a designated zone to the UAE mainland; and provide registration relief to non-resident suppliers who also ship or deliver these goods.

VAT Public Clarification on Mobile Phones, Data Packages and Airtime Made Available to Employees for Business Use

A business is entitled to recover input tax in respect of Phones, Airtime, and Packages acquired if these costs are incurred to make taxable supplies and specific requirements as to the name, documented policy, tax invoice etc. are met.

Amendment of Tax Procedures law.

The UAE Cabinet has issued Federal Decree-Law No. 28 of 2021 (16 September 2021), amending Federal Decree-Law on Tax Procedures No. 7 of 2017 (11 June 2017) (The Federal Decree-Law on Tax Procedures). The amendments are effective from 1 November 2021.

Major points are as follows.

Any decisions issued before effective date shall follow old tax procedures law.

The time limits for filing reconsideration applications, objections before the Federal Tax Authorities (FTA), Tax Dispute Resolution Committee (TDRC), and appeals before Competent Courts have been increased from 20 to 40 business days.

An alternate mechanism for filing objections and appeals to be prescribed for federal and local government entities in tax disputes for which the Cabinet shall – according to a suggestion by the Minister – issue a respective decision.

Increase in the time limits for filing tax applications/objections and softening the requirement to pre-deposit only tax amounts for filing objections before TDRC and 50% of penalties at the time of appeal before the Competent Courts

Annual Economic Substance Regulation(‘ESR’) Reporting and Country by Country Reporting

Entities conducting relevant activity & earning income from the relevant activity (provided not an exempted licensee) needs to submit the ESR Report by 31st Dec 2021 for FY ended 31st Dec 2020. For Entities conducting relevant activity for FY ended 30th June 2021 needs to be submit ESR notification by 31st Dec 2021.

Country by Country Reporting is required to be done by Ultimate Parent Entity of the MNE Group whose Tax residence is in the UAE. Reporting needs to be done by 31st Dec 2021 for the Fiscal year ended 31st Dec 2020.

New UAE Labour Law coming into force on 2 February 2022

The Ministry of Human Resources & Emiratisation (“MOHRE”) has announced an overhaul to the labour laws in the UAE. The new UAE Labour Law (Federal Decree Law No. 33 of 2021) (“New Law”), which will come into effect as of 2 February 2022 (“Effective Date”), seeks to address changes in the work environment, align UAE labour relations with international best practices, and recognise the need for atypical and/or flexible working structures.

The New Law will replace Federal Law No. 8 of 1980, as amended (“Current Law”) in its entirety, and it is the most significant amendment to UAE labour legislation since the Current Law’s enactment.

Corporate Tax Introduced in the UAE – Effective from 1 June 2023

The Finance Ministry in the UAE announced introduction of Corporate Income Tax.

The UAE Corporate Tax regime will become effective from financial years starting on or after 1 June 2023 and will be applicable to all UAE businesses / Commercial activities except for extraction of natural resources (which are already subject to Tax).

The new regime implies a standard statutory tax rate of 9% when taxable profits exceeds AED 375,000. There is an indication that there will be a different tax rate for large multinationals that meet the criteria under ‘Pillar Two’ of the OECD Base Erosion and Profit Shifting project (i.e. that have consolidated global revenues above EUR 750m).

Individuals would be subject to Corporate Tax only if they have ongoing and regular business in UAE. Employment income, income from real estate, income from savings, investment returns and other income earned by individuals in their personal capacity that is not attributable to a UAE trade or business shall not be subject to corporate tax.

Foreign Companies and Individuals would be subject to tax only if they are engaged in a business in the UAE on a regular basis.

The detailed law on Corporate Tax is yet awaited.

UAE Issues Rules on Installment and Waiver of Administrative Penalties

UAE Cabinet Decree No. 105 of 2021 was issued on 28 December 2021, providing new rules for the installment and waiver of administrative penalties.

It is provided that requests for both installments and waivers of administrative penalties must be submitted to the FTA, which shall review the request within 40 business days.

Dubai Customs issues notice concerning procedures for Cross Border e-commerce

The Notice No. (15/2021) issued by Dubai Customs on procedures for Cross Border e-commerce with the purpose of simplifying and facilitating customs procedures and regulating the movement of goods through cross-border e-commerce channels, came into effect from 01 January 2022. This notice repeals Customs Notices No. (9/2021), (13/2021) and (14/2021).

UAE to Sign Tax Treaties with Dominica, Guyana, and Jamaica and Protocols to Tax Treaties with Algeria and Finland.

As reported by Bloomberg tax, on 14 January 2022, the United Arab Emirates Cabinet approved the signing of income tax treaties with Dominica, Guyana, and Jamaica, as well as amending protocols to the 2001 tax treaty with Algeria and the 1996 tax treaty with Finland.

The treaties will be the first of their kind between the UAE and the respective countries and the protocols will be the first to amend the respective treaties. The treaties and protocols must be signed and ratified before entering into force.

Tax Treaty between Israel and the UAE has Entered into Force

The income tax treaty between Israel and the United Arab Emirates entered into force on 29 December 2021. The treaty, signed 31 May 2021, is the first of its kind between the two countries.

UAE has launched its first Space Economic Zone in Masdar City

The UAE Space Agency and Masdar have announced they have agreed to establish the country’s first Space Economic Zone in Masdar City.

The Masdar City Free Zone will offer tailor-made business licenses for space-related companies across the launch sector, satellite communication, logistics, data analysis, science, technology, engineering, among other things.

New UAE Cybercrimes Law to come into force in January 2022

The Federal Decree Law No. 34 of 2021, effective from January 2, 2022, covers new areas of the internet, bringing major amendments to the Federal Law 5 of 2012 on Combatting Cybercrimes.

The new law criminalises publishing and sharing fake news, rumours and misleading or inaccurate information that cause panic on online platforms. Violators will face at least one year in prison and a minimum Dh100,000 fine. The penalty increases to two years in prison and a minimum Dh200,000 fine if the crime was committed during pandemics, emergencies and crises.

VAT Public Clarification on Mobile Phones, Data Packages and Airtime Made Available to Employees for Business Use

The UAE Federal Tax Authority (“FTA”) published a new VAT Public Clarification (VATP028) to provide guidance on the input VAT recoverability related to mobile phones, airtime, and data packages that are made available to employees for business use by their employers.

The Public Clarification inter-alia clarifies that a business is entitled to recover input VAT from mobile phone usage if these costs are incurred to make taxable supplies and all the following conditions are met:

The business is registered for VAT and has purchased Phones, Airtime, and Packages in its own name (Not in Employees name)
The business has a detailed documented policy which clearly states that the Phones, Airtime, and Packages may only be used for business purposes, and shall also specify the consequences of any personal use.
The business regularly monitors the use of Airtime and Packages and retains explanation for the variances
The business takes action against employees using Phones, Airtime, and Packages for personal use.
The business shall obtain and maintain the tax invoice received from supplier against their services

United Arab Emirates – Niger Tax Treaty comes into effect:

The 2018 Tax treaty between UAE and Niger entered into force on 18 August 2021 and will apply as from 1 January 2022. When in effect, the treaty provides that dividends and interest will be taxable only in the state of residence of the recipient. A 10% rate will apply to royalties.



UAE issues new Federal Electronic Transactions and Trust Services Law



The UAE has issued Federal Decree by Law No. 46 of 2021 on Electronic Transactions and Trust Services (“Law”). It introduces legal concepts into UAE law that are similar to the European eIDAS Regulation to promote legal certainty in electronic interactions.

The Law provides a new means for regulating Electronic Identification Systems and Trust Services.

Electronic identification allows businesses and consumers to identify and authenticate who they are. Under the Law, The Telecommunications and Digital Government Regulatory Authority (‘TDRA’) is to issue the rules, procedures and standards related to the electronic identification systems, verification procedures and digital ID, after coordination with concerned bodies.

Trust Services are electronic services which aim to improve the confidence of citizens and businesses in the security and certainty of electronic transactions.

The Law repeals the existing Federal Law No. 1 of 2006 concerning e-transactions and e-commerce (“Old Law”) as of 2 January 2022. However, there is a 12-month grace period which allows those subject to the Law to ensure that they are compliant.

Federal Decree No. 32 of 2021 concerning Commercial Companies comes into force from 02 January 2022



The United Arab Emirates government published the Federal Decree No.32 of 2021 concerning Commercial Companies (CCL 2021) which comes into force from 02 January 2022, on which date the Federal Decree Law No. 2 of 2015 and its amendments (CCL 2020) will be repealed.

The CCL 2021 incorporates changes that will affect (in a positive way) the present operations of companies, and investors that wish to establish business presence in the UAE.

Companies incorporated at the date of commencement of the CCL i.e. January 2022, will be permitted a period of 12 months from that date to amend their memorandum and articles of associations, such that they are not inconsistent with the provisions of the CCL 2021. Failure to do so can result in a company’s liquidation and exposure to fines that may be prescribed by Cabinet in this regard.

VAT Public Clarification on Mobile Phones, Data Packages and Airtime Made Available to Employees for Business Use

The UAE Federal Tax Authority (“FTA”) published a new VAT Public Clarification (VATP028) to provide guidance on the input VAT recoverability related to mobile phones, airtime, and data packages that are made available to employees for business use by their employers.

The Public Clarification inter-alia clarifies that a business is entitled to recover input VAT from mobile phone usage if these costs are incurred to make taxable supplies and all the following conditions are met:

The business is registered for VAT and has purchased Phones, Airtime, and Packages in its own name (Not in Employees name)
The business has a detailed documented policy which clearly states that the Phones, Airtime, and Packages may only be used for business purposes, and shall also specify the consequences of any personal use.
The business regularly monitors the use of Airtime and Packages and retains explanation for the variances
The business takes action against employees using Phones, Airtime, and Packages for personal use.
The business shall obtain and maintain the tax invoice received from supplier against their services

United Arab Emirates – Niger Tax Treaty comes into effect:

The 2018 Tax treaty between UAE and Niger entered into force on 18 August 2021 and will apply as from 1 January 2022. When in effect, the treaty provides that dividends and interest will be taxable only in the state of residence of the recipient. A 10% rate will apply to royalties.

UAE issues new Federal Electronic Transactions and Trust Services Law

The UAE has issued Federal Decree by Law No. 46 of 2021 on Electronic Transactions and Trust Services (“Law”). It introduces legal concepts into UAE law that are similar to the European eIDAS Regulation to promote legal certainty in electronic interactions.

The Law provides a new means for regulating Electronic Identification Systems and Trust Services.

Electronic identification allows businesses and consumers to identify and authenticate who they are. Under the Law, The Telecommunications and Digital Government Regulatory Authority (‘TDRA’) is to issue the rules, procedures and standards related to the electronic identification systems, verification procedures and digital ID, after coordination with concerned bodies.

Trust Services are electronic services which aim to improve the confidence of citizens and businesses in the security and certainty of electronic transactions.

The Law repeals the existing Federal Law No. 1 of 2006 concerning e-transactions and e-commerce (“Old Law”) as of 2 January 2022. However, there is a 12-month grace period which allows those subject to the Law to ensure that they are compliant.

Federal Decree No. 32 of 2021 concerning Commercial Companies comes into force from 02 January 2022

The United Arab Emirates government published the Federal Decree No.32 of 2021 concerning Commercial Companies (CCL 2021) which comes into force from 02 January 2022, on which date the Federal Decree Law No. 2 of 2015 and its amendments (CCL 2020) will be repealed.

The CCL 2021 incorporates changes that will affect (in a positive way) the present operations of companies, and investors that wish to establish business presence in the UAE.

Companies incorporated at the date of commencement of the CCL i.e. January 2022, will be permitted a period of 12 months from that date to amend their memorandum and articles of associations, such that they are not inconsistent with the provisions of the CCL 2021. Failure to do so can result in a company’s liquidation and exposure to fines that may be prescribed by Cabinet in this regard.

Dubai Customs Launches Self – Audit Finding Service

The Dubai Customs has launched self – audit findings service where registered customers / individuals are allowed to disclose errors and commissions committed in customs declarations according to specific terms and conditions.

The service can be availed any time after clearance of goods but before notice or commencement of customs audit procedure. The form is available on Dubai Customs and Dubai Trade portals and the submission is required to be complete with all relevant information pertaining to the errors and omissions.

H. H. Sheikh Hamdan bin Mohammed amends Resolution on payment of outstanding public funds by instalments

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, issued Executive Council Resolution No. (53) of 2022 amending Article No. (25) of Executive Council Resolution No. (5) of 2021, which pertains to Executive Regulation of Law No. (1) of 2016 on the Financial Regulations of the Government of Dubai.

Article No. (25) is related to payment of outstanding public funds. According to the amended Resolution, if an applicant cannot make the minimum payment of 25% of the outstanding amount before applying for the payment by instalments, the head of the government entity or their authorised representative may reduce the minimum payment after reviewing the reasons behind the request.

The Resolution shall be effective from the date of its publication in the Official Gazette.

The State of Kuwait and United Arab Emirates have signed a double Tax Treaty

On 30 August 2022, the Kuwait Ministry of Finance announced that the State of Kuwait and the UAE recently signed a Treaty for the avoidance of double taxation (“the Tax Treaty”).

The objective of the Tax Treaty is to strengthen the co-operation frameworks in tax matters and unite the financial, economic, and investment partnership between the two countries.

This is the first Tax Treaty that Kuwait has signed with any Gulf Cooperation Council (GCC) member state.