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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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UAE: Tax Loss Utilisation Rules for Companies News developments

UAE: Tax Loss Utilisation Rules for Companies

  • 08/11/202408/11/2024
  • by Hannah Gutang

Khaleej Times, 4 November 2024: UAE companies must meet certain conditions to claim tax losses.

Tax losses can be carried forward without limitation provided the same person or persons continue to own at least 50% of the entity with the losses.

If there is a greater than 50% change in ownership, tax losses may still be carried forward provided there is no major change in the nature or conduct of the entity’s business.

Tax losses from one UAE group company may be used to offset the taxable income of another UAE group company where there is 75% or more common ownership and certain other conditions are met.

These conditions include both companies being UAE resident juridical persons, neither being an exempt person or a qualifying free zone business, and their financial statements being prepared using the same accounting standards and financial year.

Tax losses can, subject to certain conditions, be offset against the taxable income of future periods, up to a maximum of 75% of the taxable income in each of those future periods.

Any excess (unused) tax losses can be carried forward and used against taxable income of future tax periods indefinitely.

Example: A taxpayer has a taxable income of Dh360,000 and carried forward losses of Dh300,000.

It can offset (75% x Dh360,000) = Dh270,000 of its losses carried forward in the relevant tax period, reducing its taxable income to Dh90,000.

The amount of tax losses available for carry forward to subsequent tax periods would reduce to Dh30,000 (Dh300,000-Dh270,000).

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Sharjah: Issues a Decree Establishing the Judicial Council News developments

Sharjah: Issues a Decree Establishing the Judicial Council

  • 08/11/202408/11/2024
  • by Hannah Gutang

Sharjah has issued a decree establishing the Judicial Council in the Emirate, to be chaired by the Deputy Ruler.

The decree states the establishment of a judicial council called the “Judicial Council”, which shall have legal personality and the necessary legal capacity to achieve its objectives and exercise its competencies.

It shall have financial and administrative independence and shall be the highest authority for the judicial system in the Emirate, aiming to assist the Ruler in managing and organising the judicial authority.

The Judicial Council shall be formed under the chairmanship of the Deputy Ruler, and the membership of the Head of the Judicial Department, the Head of the Legal Department of the Government, the Head of the Court of Cassation, the Head of the Judicial Inspection Department, and two members of the judicial authority chosen by the Judicial Council.

A law shall be issued to organise the Judicial Council in the Emirate, in accordance with the legislative procedures followed.

For the full story, click here.

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UAE: Regulator Sets Requirements for End-of-Service Gratuity Investment Funds News developments

UAE: Regulator Sets Requirements for End-of-Service Gratuity Investment Funds

  • 31/10/202431/10/2024
  • by Hannah Gutang

Mubasher, 28 October 2024: The UAE Securities and Commodities Authority (SCA) has established eight key requirements for companies licensed to manage end-of-service gratuity savings funds within the country.

These requirements are part of the optional alternative system for end-of-service benefits, known as the “savings scheme.”

Financial institutions that have obtained licenses from the SCA have highlighted that the most crucial requirements include determining the contribution rate, ensuring a safe investment of funds to address concerns about potential losses, and specifying the timing for receiving entitlements upon termination of employment.

The requirements also cover the possibility of employees increasing their contributions to maximise benefits, as well as the option to continue investing their entitled funds in the fund after termination of employment.

Additionally, the benefits for participating employees and employers who contribute to these funds have been outlined.

The SCA has granted the first-of-its-kind licences to “National Bonds Corporation” and “Daman Investments” to manage end-of-service gratuity savings funds within the UAE.

This move aims to facilitate the safe and reliable investment of employee gratuities, ensuring the protection of their rights and increasing the value of their entitlements while enhancing the UAE’s position as an attractive destination for work and investment in the region.

According to the National Bonds Corporation, the basic employer contribution rate for their capital-protected investment fund is 5.83% of the employee’s basic monthly salary for full-time employees with less than five years of service, and 8.33% for those with more than five years of service.

Employees can also voluntarily contribute a percentage of their salary or a fixed monthly amount, subject to a maximum of 25% of their annual salary.

Participating employees are entitled to receive all basic contributions made by their employer to the alternative end-of-service gratuity system, along with any accrued returns during the contribution period, within 14 days of termination of employment.

Beneficiaries have the option to continue investing their entitled funds in the fund, and employees can withdraw part or all of their voluntary contributions or investment returns at any time during their employment, subject to conditions set by the fund manager.

For the full story, click here.

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UAE: FTA Publishes New Guide on Tax Residency and Tax Residency Certificate News developments

UAE: FTA Publishes New Guide on Tax Residency and Tax Residency Certificate

  • 24/10/202424/10/2024
  • by Hannah Gutang

On 18 October 2024, the UAE Federal Tax Authority (FTA) had published a new guide titled Tax Residency and Tax Residency Certificate – Tax Procedures Guide (TGPTR1).

The guide covers various aspects of tax residency, reviewing the relevant criteria under UAE tax laws and double taxation agreements (DTAs) and offering several examples.

It provides guidance on how a UAE tax resident can obtain a Tax Residency Certificate (TRC) or request the FTA’s stamp on an original TRC form issued by another jurisdiction.

One of the key aspects the guide addresses relates to the Place of Effective Management (POEM) as a criterion for determining UAE corporate tax residency.

The guide analyses the facts and circumstances that need to be considered when deciding if key management and commercial decisions, on the basis of which POEM is determined, are made in the UAE or elsewhere.

It indicates various criteria for identifying persons who make key management and commercial decisions for the company, outlining three tests: the board of directors test, the delegation of authority test, and the shareholder activity test.

The guide offers various examples of when the POEM is in the UAE (e.g., board meetings held virtually when the majority of directors are physically located in the UAE) or not (e.g., when key management and commercial decisions are made in the UAE on an occasional or one-off basis).

The guide also explains who can qualify for the TRC and the procedures to follow to obtain it.

A TRC cannot be obtained for future periods or periods exceeding 12 months.

When a TRC is needed for the current period, the FTA will review the application after three months into the period for juridical persons, as soon as the criteria to be a Tax Resident are met for natural persons, and one day into the period for Government Entities and Government Controlled Entities.

The new guide is essential for those handling corporate tax in the UAE or navigating global tax responsibilities.

Although not legally binding, it will certainly help businesses and individuals optimise their tax strategies.

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Sharjah: Digital Department Creates Platform for Real Estate Services News developments

Sharjah: Digital Department Creates Platform for Real Estate Services

  • 24/10/202424/10/2024
  • by Hannah Gutang

The Sharjah Digital Department (SDD) signed a partnership agreement with ADRES Real Estate Services to support and enhance all real estate services in the emirate of Sharjah through a single platform that provides reliable and accurate information about the real estate sector.

The agreement was signed in the presence of officials from the Ruler’s Office, Sharjah Digital Department, and Aldar Properties Group.

This event took place on the sidelines of GITEX 2024, where the signing of the partnership agreement was accompanied by the announcement of the integrated real estate platform “Aqari,” which aims to create a qualitative shift in real estate services in the emirate of Sharjah.

The “Aqari” platform is part of the distinguished Sharjah Digital initiatives, which aim to facilitate access to services through a platform available across multiple channels, including an electronic portal and smartphone applications compatible with both iOS and Android operating systems.

This platform will digitise and simplify real estate transactions, enhance transparency, and support economic growth in the emirate of Sharjah by providing a unified database for all properties.

It will include services such as lease contracts, property ownership, agency management, dispute resolution, as well as facilitating buying, selling, mortgaging, and issuing property certificates.

The platform will also work on developing a comprehensive real estate ecosystem that improves customer experience and provides a holistic view of the real estate market for decision-makers.

The “Aqari” platform is set to launch in December 2024, starting with property leasing services, including the endorsement and renewal of lease contracts, issuance of clearance certificates including investment contracts, as well as services from dispute resolution services.

In the first phase, the focus will be on rental services and positive dispute resolution, with plans to integrate all other real estate services in subsequent phases.

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