Corporate Tax, June 1
The UAE’s Ministry of Finance has issued two decisions that
seek to bring transparency and clarity to the country’s
corporate tax regime, which will come into effect from June 1,
2023.
Ministerial Decision No. 82 of 2023 specifies that taxable
entities, including qualifying free zone companies that
derive revenues of over Dh50 million are required to prepare
and maintain audited financial statements
If you need assistance with Corporate Tax and VAT registration in UAE, request a callback from one of our expert advisors.
Emiratisation Target, June 30
The Ministry of Human Resources and Emiratisation (MOHRE)
recently announced that by June 30, companies with 50
employees or more must have 1 percent of Emiratis skilled
jobs. This is in addition to the 2 percent Emiratisation that
companies must have achieved by the end of 2022.
In July 2023, fines will be applied to non-compliant companies
for not achieving the required half-yearly rate for this year as
well as the 2022 targets. A penalty of Dh42,000 will be used
for every Emirati not hired. The calculation is Dh7,000 per month
for 2023. The fines will increase by Dh1,000 annually until 2026.
Job Loss insurance scheme, June 30
Employees who fail to meet the June 30 deadline for
unemployment insurance subscription will have to pay penalties.
It is mandatory for all employees of both public and private
sectors to sign up for the scheme under Federal Decree-Law No.
13 of 2022. Subscription opened on January 1, 2023.
Officially called Involuntary Loss of Employment insurance,
it seeks to provide residents with financial security in case
they lose their jobs for reasons other than disciplinary
action or resignation.