Each year, the UAE makes Important updates to its laws to make it easier for residents to enjoy life in Dubai. There are four new rules to be aware of in 2023. They include non-Sharia compliance marriages and mandatory unemployment insurance.
Involuntary loss of employment scheme
The Involuntary Loss of Employment (ILOE) Scheme came into effect as of January 1st, 2023. It is a form of social security that provides workers with up to three months of compensation if they lose their jobs.
The scheme applies to all Emirati and foreign workers in the private and public sectors. Employees working in free zones are exempt. There is a grace period of six months (until Friday, June 30th, 2023) to subscribe to the ILOE.
The compensation is calculated at up to 60 percent of the employee’s salary.
According to the Cabinet Resolution No. 97 of 2022, UAE employees that fail to subscribe to the insurance within the grace period will be required to pay a fine. The Ministry will impose a fine of Dhs400 and a fine of Dhs200 if the insured fails to pay the prescribed insurance premiums for more than three months.
Huge update: 30 percent tax removed from alcohol
The 30 percent tax is removed from all alcohol purchases in Dubai in 2023. Both alcohol shops MMI and African and Eastern have confirmed the news to their customers.
Alcohol licenses will also be free to obtain starting from Sunday, January 1st. Those looking to apply will just need their Emirates ID for residents, or passport for tourists.
Important updates to marriage laws
The new Federal Personal Status Law allows non-Muslim couples to marry in a non-Sharia legal process. Since February 2022, non-Muslim couples in Abu Dhabi have been able to tie the knot in the civil court. Similar to a registry office wedding in the UK or Europe. From February 2023 this will become a UAE-wide law.
As per the new decree, either spouse can now ask the court to end the marriage. This is without proving which party is at fault or justifying the need to end the marriage. Divorces may be granted after one hearing, without family guidance counselling, or meditation sessions that was previously required.
If a divorcing couple has children, joint and equal custody of the children will automatically be granted until the children are 18 years old. Where there are custody disputes, the court can take further action and involvement, with consideration always given to the child or children’s best interests. If witness testimony is required, a woman’s testimony is to be equal to that of a man.
The new law will allow non-Muslims to register wills at the same time as their marriage certificate. This will enable them to give their property to whomever they wish.
Important updates: new corporate tax law
Effective from the financial year starting on or after June 2023, businesses in the UAE will be subject to corporate tax. This will impose a standard rate of 9 percent on taxable profits exceeding Dhs375,000. Profits up to this threshold will be taxed at a zero percent rate to support small businesses and startups.