Month: December 2022
UAE Corporate Tax Law – HLB HAMT Webinar
December 28, 2022
Phone:- +971 4 327 7775
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Email:- dubai@hlbhamt.com
The release of the Corporate Tax law signifies a significant change in the UAE’s current economic environment. In this webinar, the tax committee of HLB HAMT explains the nuances of recently issued corporate tax law.
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CBUAE Issues New AML/CFT Guidelines for the Insurance Industry
HLB HAMT News Team
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New anti-money laundering (AML) and Countering the Financing of Terrorism (CFT) guidelines have been released by the Central Bank of the UAE (CBUAE) for the Licensed Financial Institutions (LFIs) in the insurance sector, which includes insurance and re-insurance firms, agents, and brokers.
The guidelines go through how insurance operators should use preventative measures to detect, analyze, monitor, and prevent money laundering and funding of terrorism risks that are pertinent to life insurance and other investment-related insurance products.
The Role of Due Diligence
- Conduct due diligence on each client,
- Comprehend the type of the customer’s business,
- The purpose of the operator’s relationship with the customer,
- Should maintain transaction monitoring systems, and
- Subject all customers to continual surveillance during the business relationship.
Any activity that may be connected to money laundering, terrorist financing, or a criminal offence must be reported by sending suspicious activity or transaction reports straight to the UAE’s Financial Intelligence Unit via the “goAML” site.
Financial institutions throughout the globe, particularly those in the Gulf region, are discovering that it is more and more challenging to apply new legislation and create complete compliance systems as the regulatory framework evolves and becomes more demanding. However, the government has put in place rigorous regulations to prevent money laundering and terrorist funding in the UAE.
HLB HAMT is a renowned consultancy firm conducting impartial evaluations of anti-money laundering compliance systems in many sectors. Our team of professionals can assist you in developing, implementing, and enhancing your compliance programme for financial and other designated non-financial organisations.
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The UAE’s Ministry of Finance Launches Corporate Tax Awareness Workshops for Business Communities
HLB HAMT News Team
Phone:- +971 4 327 7775
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Following the publication of the Federal Decree-Law on Taxation of Corporations and Businesses, the Ministry of Finance of the United Arab Emirates has commenced a Corporate Tax Public Awareness workshop. The first corporate tax public awareness session will take place on January 9 in Abu Dhabi, according to the ministry announcement.
Schedule of Workshops
| Monday 9th Jan, 2023 11:00 TO 12:30 | ABU DHABI Rosewood Hotel | OVERVIEW OF UAE CORPORATE TAX Session Language: English |
| Monday 16th Jan, 2023 09:30 TO 11:00 | DUBAI Ritz Carlton DIFC | OVERVIEW OF UAE CORPORATE TAX Session Language: English |
| Monday 23rd Jan, 2023 09:30 TO 11:00 | VIRTUAL | OVERVIEW OF UAE CORPORATE TAX Session Language: English |
| Monday 6th Feb, 2023 | SHARJAH | OVERVIEW OF UAE CORPORATE TAX Session Language: English |
| Monday 13th Feb, 2023 | RAS AL KHAIMAH | OVERVIEW OF UAE CORPORATE TAX Session Language: English |
| Monday 20th Feb, 2023 | FUJAIRAH | OVERVIEW OF UAE CORPORATE TAX Session Language: Arabic |
- Closed recordings of CT awareness will take place six weeks from 20th Feb – 27th March 2023
- Virtual sessions on the Webinar platform will be conducted from April to December 2023
Although everyone is welcome to attend the workshops, chief financial officers, tax directors and managers, legal counsels, business owners, and other business executives from all industries are the main targeted group.
The Ministry of Finance’s tax specialists will lead workshops that are intended to increase knowledge, offer a dependable forum for open dialogue, answer inquiries from diverse business sectors, and promote awareness.
In addition to addressing specialised areas like computing taxable income, tax relief, tax groups, transfer pricing, and other subjects, attendees will receive a summary of the corporate tax legislation, including scope, rates, important concepts, exempted individuals, free zones, administration, and deadlines.
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Corporate Tax in UAE Updates
December 19, 2022
Phone:- +971 4 327 7775
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The Federal Decree-Law No. 47 of 2022, released by the Ministry of Finance of the United Arab Emirates (UAE), establishes the legal framework for corporate tax on business profits in the UAE. In this video, HLB HAMT’s Tax Partner, Mr. Jay Krishnan shares updates on corporate taxes in the UAE.
Enjoy the session, offer your thoughts, and be sure to follow our channel for regular updates.
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The UAE Visa Rules: No Extension of a visit visa without exit
HLB HAMT News Team
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Mobile:- +971 55 160 1291
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Email:- dubai@hlbhamt.com
The requirements for UAE travel visa extensions have already been loosened as a result of COVID-19. However, now that situations are getting back to normal, the UAE’s immigration authority has made the decision to reinstate pre-pandemic rules.
The new regulation, which came into force on December 13, 2022, states that visitors in the UAE must depart the country before submitting an application for a visit visa renewal. From within the nation, it won’t be allowed to extend visitor visas. Instead, they must leave the UAE before applying for a visa extension.
Individuals who are in the nation on a visit visa now have a number of alternatives accessible to them.
- Until further notice, anyone with a visit visa from Dubai who wishes to extend their stay can do so from within the country.
- If an individual has a visa from another emirate and wants to stay in the UAE longer, they must leave the nation and submit new permission.
- If a person with a visit visa wants to alter their status, they must apply for a new visa, and after it is approved, they must leave the nation and return.
Due to humanitarian concerns during the outbreak, when travel was difficult, the UAE approved this alteration. The UAE’s immigration laws have undergone a considerable change as a result of the recently implemented new visa criterias.
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A Guide on Statutory Leaves in the DIFC
HLB UAE Payroll Team
Phone:- +971 4 327 7775
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The Dubai International Finance Centre (DIFC), established in 2004, is a prominent jurisdiction for financial and banking licenses with a strong foothold to reach expanding markets in the MENA market,
Since its inception, the DIFC has been the location of several prestigious banks, financial institutions, and insurance firms that cater to a sizable clientele in the area. The fact that DIFC upholds international law has attracted several foreign investors to the region. DIFC also oversees the strategic expansion, operational management, and administration of Dubai’s financial firms.
The leaves granted to employees working in the DIFC (Dubai International Financial Centre) are as follows:
- Annual Leave
- Hajj Leave
- Sick Leave
- Maternity Leave
- Paternity Leave
- Public Holidays
Annual Leave Policy in DIFC
Article 30 of the DIFC Employment Law states the following regarding the vacation leave policy:
An employee who has been employed for at least ninety (90) days is entitled to paid vacation leave for twenty (20) work days in each year.
Is vacation leave in DIFC based on working days?
Yes. Vacation leave is calculated based on working days in DIFC and is exclusive of public holidays to which an employee is entitled.
Will an employee get their full salary on vacation leave?
While on vacation, an employee is entitled to receive their full salary.
What regulations apply to UAE public or national holidays that are included in an employee’s annual leave?
Any holidays stipulated by law or by mutual agreement, that fall within a vacation leave are not treated as being part of the leave thereof, hence resulting in increasing the days of vacation.
Can an employee carry forward their unused vacation leave in DIFC?
For a maximum of twelve (12) months after which any unused vacation leave expires, an employee is permitted to carry forward up to five (5) working days of untaken leave into the subsequent vacation leave period.
Will maternity leave affect the accrual of vacation leave in DIFC?
During maternity leave, vacation leave will continue to accrue.
Is it possible to convert vacation leave into sick leave if required?
Vacation leave cannot be converted to sick leave if an employee becomes ill while on vacation leave unless otherwise agreed by an employer.
Can an employee claim compensation for unutilized leaves at termination of contract?
When an employee’s contract expired, the employer must pay the worker a sum in place of any unused vacation time that has accrued up to and including the date of termination.
What will happen if the employee took more vacation leave than the accrued vacation leave?
If the employee has taken more vacation leave than has accrued at the termination date, the employer shall be entitled to deduct this amount from the end-of-service calculation.
Sick Leave
Sick leave is a permitted absence from work because of illness, and it’s different from paid vacation leave since sickness deals with health matters.
Sick leave is granted for 60 working days per year (calendar year) at the following rate:
- The first 10 working days: with full pay.
- The next 20 working days: with half pay.
- Any subsequent period to a maximum of 30 working days: without pay.
FAQs
Is sick leave in the DIFC based on calendar days or working days?
Sick leave is calculated based on working days and excludes weekly off days that fall within sick leave.
Can an employer terminate an employee who has exhausted his sick leave and is unable to return to work?
Yes, as stipulated in Article 36, an employer may terminate an employee. If an employee takes more than sixty working days of sick leave in one year, the employer may terminate the employment contract with immediate effect upon giving written notice to the employee. But this rule does not apply where an employee takes sick leave on account of a disability that has a substantial and long-term adverse effect on the employee’s ability to carry out duties for an employer.
How are UAE national or public holidays that fall within an employee’s sick leave treated in DIFC?
Sick leave is calculated based on working days, any holidays stipulated by law that fall within sick leave are treated as public holidays.
Is there a distinction between unpaid sick leave and unpaid leave?
The days taken after the first 30 working days are regarded as unpaid sick leave and are different from unpaid leave. When calculating an employee’s service duration, the days that qualify as this kind of leave are taken into account. This leave does not impact the outstanding vacation, air ticket payout, or any other payroll accrual due to the employee.
Maternity leave in DIFC
A female employee who has been continuously employed by her employer for at least 12 months may take maternity leave for up to sixty-five (65) work days at the following rate:
- Full pay for first thirty-three (33) work days; and,
- Half pay for the next thirty-two (32) days.
FAQs
Is maternity leave in DIFC based on calendar days or working days?
Maternity Leave is calculated on working days, excluding weekly off days and any holidays covered by Maternity Leave.
How many days of maternity leave are granted to female workers in DIFC?
A female employee may take maternity leave for up to sixty-five (65) working days, out of which 33 working days will be fully paid leave and the rest 32 days will be half paid leave.
Your “full pay” entitlement is your gross salary?
The “full pay” to which you are eligible while on maternity leave is your gross income, which comprises both your base pay and any additional benefits.
Is maternity leave applicable for the adoption of a child?
The maternity leave provisions under Article 37 also apply to a female employee who is adopting a child who is less than five (5) years old, and, in such a case, references to childbirth in Article 37(2) are treated as references to the date of adoption.
Will annual leave get accrued while employees are on maternity leave?
Vacation Leave shall continue to accrue during Maternity Leave and, subject to the reasonable needs of the employer’s business, may be taken consecutively to Maternity Leave.
Is an employee eligible to get compensation for unused maternity leave?
An employee is not entitled to receive compensation in lieu of accrued but untaken maternity leave.
Can an employer terminate an employee who is on maternity leave?
An employee who is on maternity leave cannot be terminated by her employer.
Paternity Leave in DIFC
Who is eligible for paternity leave?
A male employee may take paternity leave of up to five (5) work days if he has been continuously employed by his employer for at least twelve (12) months.
Is paternity leave in DIFC based on calendar days or working days?
Paternity Leave is calculated based on working days, excluding weekly off days and any holidays that fall within Maternity Leave.
Is paternity leave applicable for the adoption of a child?
Paternity Leave shall also be available to a male employee who is adopting a child who is less than five (5) years old and must be taken within a month from the date of the child’s birth or the adoption date of the child.
Is an employee eligible for full pay during paternity leave in DIFC?
An employee on paternity leave is entitled to receive full pay for 5 work days but will not be entitled to receive compensation in lieu of accrued but untaken paternity leave.
How are national or public holidays that fall within an employee’s maternity leave treated in DIFC?
Any public holiday falling on a work day during paternity leave shall be treated as additional leave having the effect of extending the paternity leave by the period of the public holiday.
Hajj Leave
A Muslim employee who has completed at least one (1) year of continuous employment with an employer shall be entitled to special unpaid leave not exceeding twenty-one (21) days to perform the Hajj pilgrimage once during the period of their employment with the employer.
Public Holiday in DIFC
Who is entitled to a public holiday?
Every public holiday that is declared in the UAE by the appropriate relevant authority for the public sector or the private sector, whichever is pertinent to the employee’s employer and falls on a work Day, enables the employee to leave.
Is there any deduction on pay for a public holiday in DIFC?
An employer must pay an employee their daily wage for each public holiday.
What will happen if an employee works on a public holiday?
In addition to the day salary required by Article 32(2), the employer must provide one of the following benefits to an employee who accepts to work on a holiday:
- A day of leave in lieu of each public holiday worked; or
- Payment of an amount equal to the employee’s daily wage or
- Payment of a portion of the employee’s daily salary that is prorated according to the time spent working on the public holiday.
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Statutory Leaves in UAE as per New Labor law (Federal Law No.33 of 2021)
HLB UAE Payroll Team
Phone:- +971 4 327 7775
Mobile:- +971 50 205 9540
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
The balance between work and private life is currently one of the most important components of the company structure. Understand how time off in the United Arab Emirates is critical to keeping your employees happy.
Helping customers across a wide variety of industries is a long-standing tradition for HLB HAMT. With our in-depth expertise, we are able to provide you with clear and understandable information on the leave policies of the United Arab Emirates.
A leave of absence is generally a consent that you give your employees to be off work for a predetermined period of days. As of February 2, 2022, Federal Law No. 33 of 2021, which went into force in the UAE, regulates leave days. In accordance with this legislation, employees of the United Arab Emirates are entitled to the following types of leave
A. Annual Leave
According to Article 29 of the new UAE labour law, annual leave entitlement policies for employees are as follows:
- Thirty (30) Days- if they have served one year of service; and
- Two (2) days per month- if they have served for six months but not one year
The employee will receive leave for the fraction of the final year of service if his or her employment is terminated prior to using all of their annual leave balance. According to the employment contract, part-time employees are entitled to annual leave based on the number of hours they worked.
B. Sick leave
The employee on probation is not eligible for sick leave with pay during the probationary period. It is only after a probationary period that sick leave becomes operational. The act now limits sick leave to no more than 90 days per year of employment.
- First 15 days will be full pay
- Next 30 days will be half Pay
- For the remaining 45 days, there will be no pay
According to Article 31 of the UAE Labor Law which mandates that employees produce their employers with a medical report issued by a medical organisation within three days of being sick.
C. Maternity Leave
A female employee is eligible for a 60-day maternity leave, which includes:
- First 45-days will be full pay
- Next 15 days will be half pay
Up to 30 days ahead to the anticipated due date of delivery, a female employee may submit her maternity leave application. If she suffers an illness during her pregnancy or after giving birth and is not able to work again, she may take an extra 45 days of unpaid leave in place of the standard maternity leave described above.
A medical certificate obtained by the appropriate medical authority must be used to demonstrate the ailment. These leave days may be continuous or scattered.
For more details, please follow the link Maternity Leave in UAE
D. Parental leave
The UAE is the first Arab nation to provide parental leave for its private sector workforce. Employees are entitled to five working days of parental leave starting with the birth of their child and up to six months. Both parents have the option of applying for parental leave, which is paid leave.
For more details, please follow the link Parental Leave in UAE
E. Compassionate Leave
Compassionate or bereavement leave may be granted to employees to mourn the death of a close relative. In the UAE, a private sector employee is eligible to:
- A five-day paid leave in the case of a spouse’s demise
- A three-day paid leave starts from the date of the occurrence of the death of a grandparent, grandchild, sibling, parent, or child.
For more details, please follow the link Compassionate Leave in UAE
F. Study Leave
The UAE has incorporated paid study leave into the country’s newly updated labour law because it recognizes the importance of education in a worker’s career and overall development.
If a worker is enrolled in one of the accredited educational institutions in the UAE, they are eligible for a 10-day paid leave of absence to take an examination. To be eligible for study leave, an employee must have worked for the company for at least two years.
For more details, please follow the link Study Leave in UAE
G. Sabbatical leave
Private sector employees in the UAE are eligible for a paid sabbatical leave, which is considered a prolonged leave from work to complete their national service.
For more details, please follow the link Sabbatical Leave in UAE
Final Reflections
It is essential that your HR Directorate understands and appropriately applies the relevant leave regulations in order to encourage increased efficiency, to comply with labour laws, to preserve excellent interactions with personnel, and to prevent lawsuits.
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Maternity Leave in DIFC
HLB UAE Payroll Team
Phone:- +971 4 327 7775
Mobile:- +971 50 205 9540
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Maternity leave is a period granted to a woman who is about to have a child or just had a baby, in order to reestablish herself after the delivery and take care of her new baby.
The paid maternity leave system in DIFC provides female employees with the opportunity to balance family and career without having to make any compromises.
Maternity leave in DIFC: An Overview
Dubai International Financial Centre, a special economic zone in Dubai established in 2004 as a financial hub for the Middle East, Africa, and South Asia (MEASA). DIFC is home to an internationally recognized, independent regulator and a proven judicial system with an English common Law framework.
Article 37 (Maternity Leave) and Article 38 (Maternity Pay) of the DIFC Employment Law state the following:
A female employee may take maternity leave for up to sixty-five (65) work days at the following rate:
- Full pay for the first thirty-three (33) Working days,
- Half pay for the next thirty-two (32) Working days
Frequently Asked Questions
Who is eligible for maternity leave?
A female employee shall be entitled to maternity leave if she has been continuously employed by her employer for at least twelve (12) months, including any period of secondment, immediately preceding the expected or actual week of childbirth.
Is maternity leave in DIFC based on calendar days or working days?
Maternity Leave is calculated on working days, excluding weekly off days and any holidays covered by Maternity Leave.
How many days of maternity leave are granted to female workers in DIFC?
A female employee may take maternity leave for up to sixty-five (65) working days, out of which 33 working days will be fully paid leave and the rest 32 days will be half-paid leave.
What are the components to be included for paying salary during maternity leave?
The “full pay” to which you are entitled while on maternity leave is specified as gross income, which includes both basic salary and any additional benefits.
What is the timeline to submit the application for maternity leave in DIFC?
An employee must notify her employer in writing that she is pregnant at least eight (8) weeks before the expected week of childbirth and must provide a certificate from a medical practitioner registered with a competent authority confirming the expected or actual birth date. She must also notify her employer in writing at least twenty-one (21) days before the day on which she proposes to begin her maternity leave.
Is maternity leave applicable for the adoption of a child?
The maternity leave provisions under Article 37 also apply to a female employee who is adopting a child who is less than five (5) years old, and, in such a case, references to childbirth in Article 37(2) are treated as references to the date of adoption.
Will annual leave get accrued while employees are on maternity leave?
Vacation Leave shall continue to accrue during Maternity Leave and, subject to the reasonable needs of the employer’s business, may be taken consecutively to Maternity Leave.
How are national or public holidays that fall within an employee’s maternity leave treated in DIFC?
Any public holiday falling on a work day during the maternity leave period shall be treated as additional leave having the effect of extending the maternity leave by the period of the public holiday.
Is an employee eligible to get compensation for unused maternity leave?
An employee has no right to be compensated in lieu of accrued but unused maternity leave.
Does a female employee qualify for additional breaks after delivery?
In addition to the break referred to in Article 26(1), where the working time for a female employee returning to work from maternity leave exceeds six (6) hours, the employee is entitled to nursing breaks of at least one (1) hour in aggregate during the work day for a period of six (6) months following the actual date of childbirth.
Can an employer terminate an employee who is on maternity leave?
While an employee is on maternity leave, the employer is not allowed to terminate her.
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Sick Leave policy in the DIFC
HLB UAE Payroll Team
Phone:- +971 4 327 7775
Mobile:- +971 50 205 9540
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Sick leave is permitted absence from work because of illness and it’s different from paid vacation leave since sickness deals with health matters.
Dubai International Financial Centre, a special economic zone in Dubai established in 2004 as a financial hub for the Middle East, Africa and South Asia (MEASA). DIFC is home to an internationally recognized, independent regulator and a proven judicial system with an English common law framework.
Compared to UAE Labor Law, DIFC law has some changes. In this article, we are explaining the sick leave policy of DIFC.
Article 34, 35 and 36 of the DIFC Employment law number 2 of 2019 states the following about sick leave.
Sick leave is granted for 60 working days per annum (calendar year) at the following rate
- The first 10 working days: with full pay.
- The next 20 working days: with half pay.
- Any subsequent period to a maximum of 30 working days: without pay.
Frequently Asked Questions
Is sick leave in the DIFC based on calendar days or working days?
Sick leave is calculated based on working days and excludes weekly off days that fall within sick leave
Can an employer terminate an employee who has exhausted his sick leaves and is unable to return to work?
Yes, as stipulated in article 36 an employer may terminate an employee. If an Employee takes more than sixty working days of Sick Leave in one year, the Employer may terminate the Employment Contract with immediate effect on written notice to the Employee. But this rule does not apply where an Employee takes Sick Leave on account of a disability which has a substantial and long-term adverse effect on the Employee’s ability to carry out duties to an Employer.
How are UAE national/public holidays that fall within an employee’s sick leave treated in DIFC?
Sick leave is calculated based on working days, Any holidays stipulated by law that fall within sick leave are treated as public holidays.
What is the difference between sick leave unpaid and unpaid leave?
The days taken after the first 30 days are regarded as sick leave unpaid and are different from unpaid leave. The days falling under this type of leave are included when determining the service period of an employee. This leave does NOT impact the outstanding vacation, air ticket payout or any other payroll accrual due to the employee.
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The United Arab Emirates has issued its first federal “Corporate Tax Law”
HLB HAMT News Team
Phone:- +971 4 327 7775
Mobile:- +971 50 677 5860
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Email:- dubai@hlbhamt.com
His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, has released the federal decree law No. 47 of 2022 on the taxation of corporations and businesses, referred to as the “corporate tax law.” A federal corporate tax will be implemented in the UAE on the basis of the corporate tax law, and it will go into effect for fiscal years beginning on or after June 1, 2023.
For the first time ever in the history of the UAE, corporate tax is being put into effect. The corporate tax will be applicable to all UAE businesses and legal entities or individuals conducting business in all emirates. Corporate tax management, collection, and administration shall be handled by the UAE Federal Tax Authority in conformity with the rules and regulations. The implementation of a corporate tax supports the nation’s goal of expanding its revenue sources and lowering its reliance on oil, which has traditionally served as the foundation of the economy.
Getting ready for and adhering to the new federal corporate tax will be a challenging path through uncharted territory for many UAE enterprises. HLB HAMT can provide you with a clear picture of what to anticipate from the law and what it will entail for the management and operation of your whole company. With our expertise by your side, you won’t have to worry since we have an in-depth understanding of UAE accounting, tax, and free zone operations, allowing us to offer our clients the best answers to the challenges.
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