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Sharjah: Council Committee Reviews Proposed Law on Military Pensions and Benefits News developments

Sharjah: Council Committee Reviews Proposed Law on Military Pensions and Benefits

  • 13/12/202413/12/2024
  • by Hannah Gutang

The Legislative and Legal Affairs, Appeals, Suggestions, and Complaints Committee of the Sharjah Consultative Council (SCC) convened to deliberate on a proposed law addressing pensions and end-of-service benefits for military personnel within the emirate’s regulatory bodies.

The draft law was initially presented during a previous council session. A meeting was held this morning at the council’s headquarters in Sharjah, led by the committee’s head.

Committee members and key officials, including the legal advisor and the committee secretary, participated in the session.

The focus was on scrutinising the draft law’s provisions, with particular emphasis on its core articles.

This involved evaluating the eligibility criteria for pensions and benefits, the procedures for their distribution, and the transitional provisions related to membership requirements.

The committee underscored the legal and financial aspects embedded in the draft law, aiming to establish robust regulations for subscriptions, benefits, and pension calculations.

During the meeting, the committee shared insights on various articles, emphasising the importance of regulatory measures tailored to the unique characteristics of Sharjah’s military organisations.

The committee plans to continue its thorough review of the draft law in upcoming meetings, ultimately preparing a final report for submission to the Consultative Council for further discussion and approval.

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

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

  • 10/12/202410/12/2024
  • by Hannah Gutang

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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UAE: New Federal Traffic Law Introduces Stricter Regulations and Safety Measures News developments

UAE: New Federal Traffic Law Introduces Stricter Regulations and Safety Measures

  • 05/12/202405/12/2024
  • by Hannah Gutang

Khaleej Times, 3 December 2024: On 29 March 2025, a significant federal decree on traffic regulations will be implemented, introducing several key changes aimed at enhancing road safety.

The minimum driving age will be reduced to 17 years, allowing younger individuals to obtain a driver’s license.

In a bid to reduce noise pollution, the decree bans the operation of excessively noisy vehicles and restricts the use of car horns within city limits, except in situations where they are necessary to prevent danger or accidents.

The new regulations also prioritise pedestrian safety by prohibiting road crossings where speed limits exceed 80 km/h.

Authorities have emphasised that non-compliance will result in civil or criminal liability.

To deter serious traffic violations that could lead to fatal accidents, the law outlines “deterrent penalties” for offences such as driving under the influence of alcohol or narcotics, hit-and-run incidents, jaywalking, and driving in flood-prone areas during adverse weather conditions.

Additionally, transporting hazardous materials or unusual loads will now require a special permit from the relevant authorities, ensuring safer transportation practices across the country.

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Sharjah: Reduces Property Transaction Fees News developments

Sharjah: Reduces Property Transaction Fees

  • 05/12/202405/12/2024
  • by Hannah Gutang

Arabian Business, 27 November 2024: Sharjah moves to reduce fees for the sale and purchase of property transactions, a move seen to enhance the attraction of the emirate’s real estate sector to international investors.

The decision on the fee reduction, approved by the Sharjah Executive Council (SEC), was conveyed to the organisers of the forthcoming real estate exhibition ACRES.

SEC’s decision includes a 0.5% reduction in selling fees for developers and discounts on purchase fees; one percent for UAE and GCC citizens and 2 percent for other nationalities.

The Organising Committee of the Sharjah Real Estate Exhibition said the decision to reduce property transaction fees will significantly enhance the emirate’s real estate sector.

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UAE: Corporate Tax Registration Deadline for Resident Juridical Persons News developments

UAE: Corporate Tax Registration Deadline for Resident Juridical Persons

  • 29/11/202429/11/2024
  • by Hannah Gutang

The Federal Tax Authority (FTA) has renewed its calls for Resident Juridical Persons with Licences issued in October and November, regardless of the year of issuance, to promptly submit their Corporate Tax registration application no later than 30 November 2024, to avoid Administrative Penalties.

The FTA advises Taxable Persons to adhere to the timelines specified in Cabinet Decision No. 3/2024 on the Timeline for Registration of Taxable Persons for Corporate Tax, which came into effect on 1 March 2024.

Resident Juridical Persons incorporated or established before March 1, 2024, must submit their Corporate Tax registration application based on the month their Licence was issued, irrespective of the year.

For Taxable Persons holding multiple Licences on 1 March 2024, the deadline is determined by the Licence with the earliest issuance date.

Registration for Corporate Tax is available through the EmaraTax digital platform, accessible 24/7.

The process has been streamlined into four main steps, taking approximately 30 minutes. Taxable Persons can also register through authorised Tax Agents or government service centres.

The FTA has urged Taxable Persons subject to Corporate Tax to review the Corporate Tax Law, related decisions, and guidelines published on the FTA website: tax.gov.ae.

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Sharjah: Issues Law Regulating Digital Department News developments

Sharjah: Issues Law Regulating Digital Department

  • 29/11/202429/11/2024
  • by Hannah Gutang

Sharjah has issued a law regulating the Sharjah Digital Department (SDD).

This law aims to improve Sharjah’s status as a smart digital city, solidifying its local and international leadership and competitiveness.

It seeks to raise awareness among government entities about the importance of digital transformation, transparency, and governance to advance institutional work and enhance stakeholder satisfaction.

The law contributes to enhancing the effectiveness and efficiency of performance through the excellence of the government sector in digital transformation and providing smart digital services based on global standards.

It supports the government’s efforts to achieve comprehensive development in the emirate by providing shared digital systems, platforms, and channels, facilitating the exchange of information and data among government entities.

The SDD is empowered to develop relevant strategies and standards related to digital transformation, information security, and technology use.

It coordinates joint efforts between institutions in the governmental and private sectors to efficiently build, develop, and manage the digital transformation system and its services.

The department supervises the digital transformation system in the emirate, establishing necessary standards and indicators to support operational plans within government entities and their governance.

Furthermore, the SDD oversees the official government portal, the unified government services platform, and applications developed, operated, and enhanced by government entities.

It develops specifications to ensure optimal use of modern technology, data analysis practices, and AI in government entities, monitoring their implementation.

The department studies, reviews, and approves all initiatives and projects submitted by government entities regarding digital transformation, information technology, and information security to ensure their standardisation across the emirate.

It formulates frameworks and technical standards for infrastructure, data sharing platforms, open data, and digital service and technology management methodologies.

The SDD manages projects and programs related to digital transformation, infrastructure development, digital communication networks, applications, and systems at the emirate level, integrated services, and defines roles and responsibilities for each entity.

It represents the emirate at local, regional, and international levels in relevant fields, participating in exhibitions, events, conferences, seminars, and meetings.

The law outlines the department’s competencies related to digital systems and services, information security, data management, infrastructure, and digital empowerment.

It specifies the Director-General’s authority, including developing policies, overseeing operations, proposing draft laws, representing the department, presenting budgets, signing agreements, forming committees, and delegating powers.

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Sharjah: SEDD Implements Executive Council Decision on Registering Family Businesses News developments

Sharjah: SEDD Implements Executive Council Decision on Registering Family Businesses

  • 27/11/202427/11/2024
  • by Hannah Gutang

Sharjah Economic Development Department (SEDD) began to implement the Sharjah Executive Council decision regarding the registration of family businesses in the emirate.

This aims to develop the family business system in Sharjah in accordance with the best global practices that go with the provisions of Sharjah Executive Council Decision No. 31/2024 regarding the regulation of family companies in the Emirate of Sharjah.

The SEDD Chairman has stressed that Sharjah is working continuously to develop a legislative and regulatory environment to enhance the growth of family businesses and support their continuity and sustainability over the coming decades, in accordance with the best international practices.

He has added that such thing is important because family businesses represent a basic and significant element in enhancing the growth of the emirate’s economy and supporting its competitiveness regionally and globally.

Also, he has pointed out that in continuation of the national efforts to provide an ideal work environment for family businesses and encourage them to grow and prosper, a number of family businesses have been registered in the Companies Register.

SEDD Director has stated that the decision specified the scope of its provisions to be applied to family companies established in the emirate, existing companies owned by owners from one family, branches of family companies from the emirates, and family companies established in free zones, in a manner that does not conflict with the laws and regulations of the free zones.

According to the decision, the company shall have an incorporation contract in accordance with the provisions mentioned in the Companies Law.

The decision has also included articles regulating the ownership of the family company, the partner’s shares disposition and valuation, the categories of shares, the family endowment company, in addition to the family charter, dispute settlement, dissolution and liquidation of the company, executive decisions, implementation and validity.

Furthermore, the document that regulates the governance of family affairs related to the Family Business, and the family relationship with the family business, in accordance with Sharjah Executive Council Decision No. 31/2024 regarding the regulation of family companies in Sharjah.

This charter includes the rules for family ownership, goals and values, mechanisms for evaluating shares and methods for distributing profits.

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UAE: Private firms Reminded To Meet Emiratisation Targets By Year End News developments

UAE: Private firms Reminded To Meet Emiratisation Targets By Year End

  • 22/11/202422/11/2024
  • by Hannah Gutang

Khaleej Times, 19 November 2024: Authorities in the UAE have reminded private sector companies to meet their 2024 Emiratisation targets by the end of December.

Non-compliant firms will face hefty fines starting from 1 January 2025.

Emiratisation policies apply to establishments with 50 or more workers, requiring them to increase the number of Emirati employees in skilled positions by 2% by the end of the year.

Failure to comply will result in a fine of Dh96,000 for each Emirati not hired.

Additionally, a select group of establishments employing 20 to 49 workers across 14 specified economic activities are also subject to Emiratisation policies.

These establishments must employ at least one Emirati and retain any nationals employed prior to 1 January 2024.

Non-compliance will also lead to a Dh96,000 fine for each Emirati not hired.

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Sharjah: SCC Discusses Developments of Sharjah Ports Customs and Free Zones Authority News developments

Sharjah: SCC Discusses Developments of Sharjah Ports Customs and Free Zones Authority

  • 22/11/202422/11/2024
  • by Hannah Gutang

The Sharjah Consultative Council (SCC) continued its third session of the second ordinary meeting in its eleventh legislative term to discuss the policies of the Sharjah Ports, Customs, and Free Zones Authority (SPCFZA).

A Member of Sharjah’s Executive Council and Chairman of SPCFZA has highlighted the authority’s role in supporting the tourism and commercial sectors, aligning its strategies with federal and local visions.

He has emphasised initiatives like digitising services and using AI to streamline operations, enhance sustainability, and foster community engagement.

Members have raised concerns on emiratising jobs in free zones, boosting customs efficiency, and developing specialised zones for food security.

Proposals included leveraging technology like AI for customs processes, promoting sustainable energy in free zones, and enhancing partnerships with educational institutions to align academic outcomes with market needs.

The session concluded with the SPCFZA reiterating its commitment to advancing Sharjah’s investment environment and supporting the national economy through modern infrastructure and digital transformation.

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UAE: Issues Federal Decree Establishing UAE Aid Agency News developments

UAE: Issues Federal Decree Establishing UAE Aid Agency

  • 14/11/202414/11/2024
  • by Hannah Gutang

The UAE has issued a Federal Decree No. 27/2024 to establish the UAE Aid Agency, affiliated with the International Humanitarian and Philanthropic Council.

The agency will implement foreign aid programs, focusing on disaster relief, early recovery, post-conflict stabilisation, development, and capacity-building initiatives.

It aims to enhance the impact of the UAE’s global priority foreign aid and maximise positive outcomes in executing humanitarian relief programs and developmental projects worldwide.

The UAE’s leadership has emphasised the country’s commitment to addressing global humanitarian challenges, fostering sustainable development, and collaborating with international partners to create a lasting positive impact, especially in crisis-affected regions.

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