UAE: Government Issues Federal Decree-Law to Reorganise Civil Defence Authority

The UAE Government has issued a Federal Decree-Law to reorganise the Civil Defence Authority, aiming to enhance the country’s readiness to respond to emergencies and disasters while ensuring the highest standards of public safety and protection.

This Decree marks a significant step in modernising the national civil protection framework.

The reorganisation focuses on improving coordination between local and federal entities working in civil defence, developing advanced alert and evacuation systems, providing care for affected individuals, and forming specialised teams for relief efforts.

The Decree establishes a new entity named the “Civil Defence Authority”, part of the National Emergency, Crisis, and Disasters Management Authority.

This new body replaces the Civil Defence Department previously operating under the Ministry of Interior.

The Civil Defence Authority is tasked with strategic responsibilities to enhance civil protection and ensure comprehensive readiness to address risks and disasters.

These responsibilities include developing policies, strategies, and regulations related to civil defence in coordination with relevant entities, studying potential risks and incidents, and preparing plans to manage them efficiently.

The Authority is also responsible for creating hazards prevention programmes and establishing safety standards, securing buildings and facilities against fire hazards, and deploying rapid response teams to incident sites to extinguish fires effectively.

The Authority’s duties extend to establishing and equipping specialised risk management centres and public alert systems to warn residents of potential hazards.

It also prepares evacuation plans for residents when necessary and ensures residential and institutional buildings are adequately equipped.

Medical and social care is provided for affected individuals in collaboration with relevant entities.

To further bolster national preparedness, the Authority is tasked with procuring and maintaining equipment essential for civil defence operations.

It also coordinates essential services—medical, social, engineering, administrative, and educational—to ensure continuity during times of disasters.

Additionally, the Authority organises efforts and collaborates with entities that have internal security systems, such as oil companies and airports, to provide support as required.

The Civil Defence Authority is committed to forming specialised teams to carry out response and relief operations in affected areas.

It organises joint training programs for civil defence personnel and volunteers and implements awareness campaigns to educate residents on the necessary actions during emergencies.

The Authority’s responsibilities also include monitoring radiological, chemical, and biological hazards and taking the necessary measures to address them in coordination with relevant authorities.

Furthermore, it enhances cooperation among UAE emirates to establish support centres that improve civil defence services at national and international levels.

The Civil Defence Authority prioritises coordination with entities that maintain internal security and safety systems, such as oil companies and airports, to ensure effective support and assistance when required.

This includes organising methods for providing aid and fostering efficient collaboration during emergencies.

The Civil Defence Authority is tasked with forming specialised teams for response and relief operations in disaster-affected areas.

It organises training programmes and joint simulation exercises for civil defence personnel and volunteers to enhance their readiness for various emergency scenarios.

Additionally, the Authority oversees awareness campaigns to educate residents about necessary precautions and procedures during emergencies.

The Authority requires entities to refrain from issuing any licences for properties or facilities unless they first obtain a certificate verifying compliance with safety and prevention standards.

The Decree establishes a dedicated committee to review compensation claims related to damages caused by civil defence operations, with a grievance mechanism in place.

It also enforces strict penalties, including imprisonment of up to six months or fines of up to AED250,000 for violations of the law or disruptions to civil defence activities.

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UAE: Mandatory Health Insurance, Starting 1 January 2025

Khaleej Times, 17 December 2024: Starting 1 January 2025, employers in the Northern Emirates, including Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah, will be mandated to provide health insurance for their employees as a condition for issuing or renewing residency permits.

This move aligns with similar policies already in place in Abu Dhabi and Dubai.

Although the Human Resources and Emiratisation Ministry has not explicitly stated it, industry experts anticipate that the mandatory insurance scheme will eventually extend to employees’ family members.

This would require employees to secure health insurance for their dependents, similar to the existing requirements in Dubai and Abu Dhabi.

The basic health insurance package, starting at Dh320 per year, is designed to be affordable and accessible. It covers individuals aged one to 64, with no waiting period for those with chronic illnesses.

The plan includes a 20% co-payment for inpatient care, with a maximum of Dh500 per visit and an annual cap of Dh1,000.

Outpatient care requires a 25% co-payment, capped at Dh100 per visit, with no co-payment for follow-up visits within seven days. Medication co-payments are capped at 30%, with an annual limit of Dh1,500.

Industry leaders highlight the affordability and competitiveness of the Dh320 package, emphasising its role in expanding healthcare access and aligning with the UAE’s goal of universal health insurance coverage.

However, they advise sponsors to evaluate whether the basic plan meets their family’s comprehensive healthcare needs.

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UAE: Launches World’s First VAT Refund System for E-Commerce Tourists

Khaleej Times, 16 December 2024: The Federal Tax Authority (FTA) has unveiled a groundbreaking VAT refund system for e-commerce retail purchases made by tourists during their stay in the UAE, marking a world-first initiative.

This innovative system, developed in partnership with Planet, the authorised operator, is part of the FTA’s strategy to embrace proactive solutions through innovation and digital transformation.

The new system integrates platforms and e-commerce retailers registered with the Authority into the ‘VAT Refund for Tourists on E-Commerce Purchases’ program.

This initiative builds on the success of a fully digital VAT refund system launched over two years ago, which has been continuously updated to remain entirely paperless.

Tourists can now enjoy a seamless shopping experience, easily scanning their passports and completing purchase transactions that are automatically converted into digital invoices.

The system allows for quick verification of invoices via a shoppers’ portal, ensuring fast and efficient VAT refund procedures for eligible purchases.

The FTA’s Director-General expressed pride in launching this pioneering electronic system, which enhances the UAE’s reputation as a leading international tourism destination.

The system has been praised for its simplicity, efficiency, and speed, offering tourists a unique experience by enabling VAT recovery on purchases from both traditional stores and registered e-commerce platforms.

The VAT refund process is designed to be smooth and efficient, from purchase to refund completion upon the tourist’s departure.

Tourists can apply for VAT refunds directly through registered e-commerce platforms by providing travel document details and personal information to verify eligibility at the time of purchase.

The registration is finalised once the tourist’s identity is confirmed during delivery or online order fulfillment.

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UAE: Announces Amendments to Corporate Tax Law

Finance Ministry has announced updates in relation to certain provisions of Federal Decree-Law No. 47/2022 on the Taxation of Corporations and Businesses.

These amendments aim to enhance the business environment in the UAE and promote greater compliance with global standards for tax transparency and fairness.

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UAE: Announces 15% Domestic Minimum Top-Up Tax for Multinationals in 2025

Khaleej Times, 9 December 2024: The UAE is set to implement a new tax on multinational companies operating in the Emirates.

Large multinational enterprises (MNEs) must pay a minimum effective tax rate of 15% on their profits.

The Finance Ministry has announced that Domestic Minimum Top-up Tax (DMTT) will be effective for financial years starting on or after 1 January 2025 to establish a fair and transparent tax system aligned with global standards.

The Ministry has added that the DMTT will apply to multinational enterprises operating in the UAE with consolidated global revenues of €750 million (Approx Dh300 billion) or more in at least two out of the four financial years immediately preceding the financial year in which the DMTT applies.

Further details on this legislation will be issued by the Finance Ministry in due course.

The UAE continues to improve its business-friendly environment, reflecting its commitment to national strategic objectives such as strengthening economic competitiveness and improving ease of doing business.

This major update is in line with the country’s commitment to implement the Organisation for

Economic Co-operation and Development’s (OECD) Two-Pillar Solution.

To promote sustainable growth, innovation, and investment, the Finance Ministry is considering the
introduction of the following Corporate Tax Incentives under Federal Decree-Law No. 47/2022.

A research and development (R&D) tax incentive is being considered to encourage research and development (R&D) activities and foster innovation and economic growth within the UAE.

Based on feedback received during public consultations conducted in April 2024, the proposed incentive is expected to take effect for tax periods starting on or after 1 January 2026.

The R&D tax incentive will be expenditure-based, offering a potential 30-50% tax credit and will be refundable depending on the revenue and number of employees of the business in the UAE.

The scope of Qualifying R&D activities will be aligned with the OECD’s Frascati Manual guidelines and must be conducted within the UAE.

Another incentive being considered is a refundable tax credit for high-value employment activities.

This aims to encourage businesses to engage in activities that deliver significant economic benefits, stimulate innovation, and enhance the UAE’s global competitiveness.

This incentive is proposed to take effect on 2 January 2025 and will be granted as a percentage of eligible salary costs for employees engaged in high-value employment activities.

This includes C-suite executives and other senior personnel performing core business functions that add substantial value to the UAE economy.

The final form and implementation of the proposed incentives are subject to legislative approvals.

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