UAE: Cryptocurrency for Salaries and Payments

Khaleej Times, 4 June 2025: The UAE is set to integrate cryptocurrency into daily transactions, allowing residents to pay bills, traffic fines, and receive salaries in digital currencies.

Residents and businesses across the UAE, will be able to use cryptocurrencies for utility bills, groceries, and other payments. The legal precedent was set by a Dubai court when it ruled allowing an employee’s dues to be paid in both dirhams and cryptocurrency, as per their contract.

To use crypto currencies, businesses have to adapting their payment systems to accept cryptocurrencies, and residents would have to ensure compliance with the legal framework governing digital transactions.

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UAE: Banks to Increase Minimum Balance Requirement

Khaleej Times, 20 May 2025: Several banks in the UAE have announced an increase in the minimum balance requirement from AED 3,000 to AED 5,000 as per the Central Bank’s personal loan regulations.

Customers who do not maintain the new minimum balance will incur a monthly fee of AED 25, unless they hold a credit card or have personal financing with the bank. The decision aims to enhance banks’ deposit levels and cover the costs of maintaining customer accounts.

Customers with a total balance of AED 20,000 or more, or a monthly salary transfer of AED 15,000 or more, will be exempt. Those with salary transfers between AED 5,000 and AED 14,999 who also have a credit card, overdraft facility, or loan will also be exempt.

Finance experts have raised concerns about the financial disadvantage to low-income workers, urging banks to reconsider the increase or offer varied minimum balances based on salary ranges. Alternative options, such as using money exchanges or financial institutions for salary disbursement, are suggested to mitigate the impact on affected workers.

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Fujairah: Police Announce New Traffic Plan for Pedestrian Safety

Khaleej Times, 20 May 2025: The Fujairah Police have unveiled a comprehensive traffic plan aimed at improving pedestrian safety across the emirate.

This initiative involves the establishment of new pedestrian crossings and the redesign of existing hazardous ones. The decision targets both drivers and pedestrians to reduce run-over accidents and promote safe crossing practices.

The plan aligns with Article 89 of Federal Decree-Law No. 14/2024 on the Traffic and Road Law, which penalises jaywalking with a fine of 400 AED. It forms part of a broader operational strategy for 2025, including a campaign titled “Pedestrians Have the Right to Cross Safely.” This campaign aims to lower mortality and injury rates by encouraging the use of designated crossings and discouraging risky behaviours.

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UAE: Federal Tax Authority Clarifies Corporate Tax Rules for REIT Investors

The Finance World, 7 May 2025: The UAE Federal Tax Authority (FTA) issued a clarification CTP005 on the Taxation of investors in a Real Estate Investment Trust (REIT) that is exempt from Corporate Tax as a Qualifying Investment Fund

The clarification covers the income that will be taxed in the hands of juridical persons that are investors in a REIT and the relevant Tax Period in which the income will be taxed for such investors. It also provides information on the compliance obligations of the REIT and the investors.

A REIT that meets the conditions of Article 10(1) of Federal Decree-Law No. 47/20221 and Article 4(1) of Cabinet Decision No. 34/20252 can make an application to the Federal Tax Authority to be exempt from Corporate Tax as a Qualifying Investment Fund. Where a REIT is exempt from Corporate Tax, the Taxable Income of a juridical person that is an investor in the REIT is adjusted to include 80% of the prorated Immovable Property Income of the REIT. However, if the REIT makes a distribution within nine months from the end of its Financial Year and the investor has not received the dividend distribution due to the disposal of its entire Ownership Interest in the REIT, the investor will not be subject to Corporate Tax on the Immovable Property Income of the REIT.

A REIT must provide specific information in respect of the period to which the distribution relates, or the relevant Financial Year of the REIT, as the case may be. This includes the amount of Immovable Property Income of the REIT; whether the REIT is a distributing fund for such Financial Year; and the amount of tax depreciation deduction for each investment property.; any disposals of investment property for which a tax depreciation deduction was previously claimed. A REIT is not required to provide investors with information that is not relevant to the investor’s Corporate Tax obligations or which the investor has an obligation to keep in their own records, such as the investor’s own acquisition cost or disposal proceeds of an Ownership Interest in the REIT.

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UAE: Securities Authority Imposes Disciplinary Actions for Market Violations

Mubasher, 6 May 2025: The UAE Securities and Commodities Authority (SCA) has issued a financial penalty of AED 100,000 to an investor for engaging in pre-emptive trading activities.

The relevant regulation governs trading, clearing, settlement, transfer of ownership, and custody of securities.

In a separate disciplinary action, the SCA revoked a preliminary approval of an employee holding the position of “Promotion Manager” at a licensed company. The revocation followed the employee’s proven misconduct during an examination on the UAE’s financial systems and regulations.

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