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In June, the UAE will enforce three major rules that will affect companies and employees in the country, with violators facing fines of up to Dh42,000.
Here’s what you need to know:
The UAE will begin enforcing corporate tax starting June 1. Corporate tax will be set at 9 percent for taxable business profits that exceed Dh375,000. Business with profits at Dh375,00 or less will not be taxed as part of the UAE’s support for small businesses and start-ups. Corporate Tax will not be applied to salaries or other personal income from employment.
ALSO READ: 6 new rules for UAE Corporate Tax scheme
All employees in the UAE must have unemployment insurance or job loss insurance, with the deadline extended to June 30.
The scheme’s subscription officially started on January 1 for Emiratis and expats working in the public and private sectors. All employees are required to subscribe by June 30 or face a Dh400 fine.
The insurance scheme, spearheaded by the Ministry of Human Resources and Emiratisation (MoHRE), has ultra-low monthly premiums ranging from Dh5 to Dh10, with the insured receiving 60 percent of their basic salaries for three months in the event of job loss for reasons other than disciplinary action or resignation.
By June 30, companies that employ 50 workers or more must meet an Emiratisation target equivalent to 1 percent in skilled jobs. This means they must hire at least one Emirati for every 50 skilled job position. This is in addition to the 2 percent Emiratisation that is mandatory as of 2022. Companies that fail to meet the target by June 30 will be fined Dh42,000 for every Emirati not hired, or Dh7,000 per month for 2023.The fines will increase by Dh1,000 annually until 2026. ICA/Expat Media
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