Importance of New UAE Corporate Tax Registration Deadlines for Businesses

The Federal Tax Authority (FTA) has established new registration deadlines for businesses subject to UAE corporate tax in 2024. These deadlines supersede previous assumptions regarding registration timing.

While the new approach provides clarity on required actions, some uncertainties remain. Guidance on determining a business’s fiscal year may be forthcoming. Businesses should proactively monitor all FTA releases to ensure compliance.

The growing complexity of UAE tax regulations underscores the value of a dedicated company secretary function, responsible for managing tax compliance tasks.

Previously, businesses could register for corporate tax before settling any tax liability. Now, deadlines exist based on trade license issuance dates. Failure to initiate registration by the deadline incurs a Dh10,000 penalty. Importantly, the penalty applies for not starting the process, not for incomplete applications by the deadline.

Appeal options exist for rejected applications. However, success rates are unclear. Additionally, system-related challenges may arise, particularly for businesses already registered for VAT.

The FTA portal requires businesses to maintain current supporting documents. While the previous requirement for continual updates was discontinued, recent reminders highlight expired documents. These must be updated before initiating corporate tax registration. Potential delays may occur due to the review process for updated documents.

Misinformation regarding deadlines circulated following the announcement. Businesses are advised to seek professional guidance and act well ahead of their applicable deadlines to ensure smooth registration and avoid penalties.

Publish 6 Mar 2024

Source: https://www.thenationalnews.com/business/comment/2024/03/04/uae-corporate-tax-why-its-important-to-take-note-of-new-deadlines/

Connect with our Business Setup Experts to know more: hidubai@smartzonesuae.com
+971 529604444 / +971 43614555

Dubai Introduces Corporate Income Tax for Foreign Banks

The Emirate of Dubai has implemented a new legal framework for the taxation of foreign banks operating within its jurisdiction. Law No. (1) of 2024, issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, outlines the key provisions governing this taxation regime.

The Law applies to all foreign banks operating in Dubai, encompassing those located in special development zones and free zones. Notably, foreign banks licensed within the Dubai International Financial Centre (DIFC) are exempt from these new tax regulations.

Foreign banks are subject to a 20% tax on their annual taxable income as determined by the Law. However, if these banks have already paid corporate tax under Federal Law No. (47) of 2022, the amount paid towards corporate tax will be deducted from their overall tax liability under this new framework.

The Law establishes clear guidelines for calculating taxable income, filing and paying taxes, and procedures related to tax audits, voluntary disclosures, and tax audit-related responsibilities. Additionally, it outlines the rights of foreign banks and their branches licensed by the Central Bank of the UAE.

The Law specifies the process for notifying foreign banks of their tax audit results and allows them to lodge objections with Dubai’s Department of Finance regarding the assessed tax amount or imposed fines, subject to established legal conditions. Furthermore, the Law outlines potential penalties for violations, with a maximum penalty of AED 500,000 ($136,100) for the first offense and a maximum of AED 1 million ($272,200) for repeat offenses within a two-year period.

This Law applies to tax years commencing after its official publication in the Dubai government’s Official Gazette. The Director-General of the Department of Finance will issue additional regulations to facilitate the implementation of this Law.

This new Law supersedes Regulation No. (2) of 1996 and any other conflicting legislation. Decisions and memorandums enforcing Regulation No. (2) of 1996 will remain valid until replaced by new regulations under the new Law.

Law No. (1) of 2024 signifies the official commencement of this new tax regime for foreign banks operating in Dubai.

Publish 6 Mar 2024

Source: https://www.arabianbusiness.com/industries/banking-finance/dubai-announces-new-tax/

Connect with our Business Setup Experts to know more: hidubai@smartzonesuae.com
+971 529604444 / +971 43614555

Dubai Mall Tops Global Destination List With 105m Visitors In 2025 And 2026

Dubai Mall Solidifies Position as Global Tourism Leader with Record-Breaking 105 Million Visitors in 2023

Dubai, UAE (March 5, 2024): Dubai Mall cemented its position as the world’s most visited retail and entertainment destination in 2023, welcoming a record-breaking 105 million visitors. This represents a significant 19% increase from the 88 million visitors recorded in 2022.

The surge in footfall at Dubai Mall is attributed to its diverse offerings, encompassing over 1,200 retail outlets, expansive entertainment options, and a commitment to exceptional visitor experiences. This successful strategy has translated into a robust sales performance, further solidifying the mall’s positive impact on the local retail sector.

The positive momentum continued in the first two months of 2024, with the mall already attracting over 20 million visitors, setting the stage for another record-breaking year.

Commenting on the achievement, Emaar founder Mohamed Alabbar stated, “These figures are a testament to Dubai Mall’s position as a global leader in the retail and entertainment industry. They also reflect the city’s forward-thinking vision and thriving economy. As an integral part of Dubai’s economic fabric, we are committed to playing a leading role in the city’s continued success and innovation.”

Mr. Alabbar further emphasized the mall’s global appeal, highlighting the diverse nationalities represented amongst its visitors. This, he noted, underscores not only the mall’s worldwide popularity but also aligns with Dubai’s status as a cosmopolitan hub.

Additionally, Dubai Mall has witnessed a significant expansion of its digital footprint, currently boasting over 1.3 million followers across various platforms.

This press release omits the information about Salik managing the parking system, as it is not directly relevant to the achievement of 105 million visitors.

Publish 5 Mar 2024

Source: https://www.arabianbusiness.com/industries/retail/dubai-mall-most-visited-place-on-earth-with-105mn-visitors-in-2023

Connect with our Business Setup Experts to know more: hidubai@smartzonesuae.com
+971 529604444 / +971 43614555

Work Bundle Launched In Dubai For 275k+ Companies, Expands To All Emirates Soon

The United Arab Emirates (UAE) has launched a unified Work Bundle platform, offering a streamlined solution for companies across the country to manage employee visa applications and renewals. This initiative brings together the services of five federal and local authorities into a single platform, facilitating data exchange and simplifying procedures.

Currently available in Dubai through the Invest in Dubai platform, the Work Bundle will soon be accessible throughout all emirates within weeks. This innovative platform aims to eliminate bureaucratic hurdles and expedite processes for businesses, particularly startups and entrepreneurs.

Dr. Abdulrahman Awar, Minister of Human Resources and Emiratisation, highlighted the platform’s role in attracting foreign investment. He emphasized the initiative’s contribution to the UAE’s ongoing digital transformation, showcasing its commitment to efficiency and ease of doing business.

The announcement, made in the presence of key officials from various government departments, underscores the collaborative effort behind this significant advancement. Leveraging Emirates ID and other digital tools, the Work Bundle empowers businesses to complete transactions quickly and effectively, reflecting the UAE’s commitment to embracing the pace of digital transformation.

Lieutenant General Mohammed Ahmed Al Marri, Director General of Dubai’s General Directorate of Residency and Foreigners Affairs, emphasized the platform’s role in attracting companies to the UAE. He highlighted the initiative as a testament to the nation’s rapid digital transformation efforts.

Publish 6 Mar 2024

Source: https://www.arabianbusiness.com/politics-economics/work-bundle-now-available-to-275000-companies-in-dubai/

Connect with our Business Setup Experts to know more: hidubai@smartzonesuae.com
+971 529604444 / +971 43614555

DIEZ Records Exceptional Growth, Profits In 2023, Bolstering Dubai’s Economy

The Dubai Integrated Economic Zones Authority (DIEZ) announced significant growth and record profits in 2023, highlighting its commitment to fostering Dubai’s economic diversification and global competitiveness.

DIEZ experienced a remarkable year financially. Operating profit surged by 64.6% compared to the previous year, total revenue climbed 8.1%, and the organization directly contributed 5.1% to Dubai’s GDP in 2021. These figures demonstrate DIEZ’s strong financial health and significant impact on the emirate’s economy.

Increased Business Activity:

Economic zones overseen by DIEZ witnessed a surge in activity in 2023. Company registrations jumped 15.3%, and the workforce within these zones grew by a substantial 30.5% to reach 70,000 individuals. This growth signifies the increasing attractiveness of DIEZ zones for businesses seeking to operate in Dubai.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DIEZ, emphasized the organization’s commitment to stimulating investment and trade, enhancing Dubai’s GDP, and contributing to the Dubai Economic Agenda D33. He further stressed DIEZ’s dedication to solidifying Dubai’s position as a leading global investment destination.

Dr. Mohammed Al Zarooni, Executive Chairman of DIEZ, highlighted the organization’s dedication to bolstering Dubai’s economic competitiveness and contributing to the UAE Centennial 2071 and “We the UAE 2031” vision. He also emphasized DIEZ’s focus on fostering knowledge-based and innovative sectors and supporting small and medium-sized enterprises through a AED 500 million venture capital fund.

Focus on Future Growth:

DIEZ remains committed to driving future growth by focusing on key areas like artificial intelligence, sustainable development, and knowledge-sharing initiatives. These efforts aim to solidify Dubai’s position as a global hub for investment and innovation, ultimately contributing to the emirate’s ambition of becoming one of the world’s leading economies.

Publish 22 Feb 2024

Source: https://www.arabianbusiness.com/industries/technology/uae-to-host-first-gulf-only-esports-competition-in-push-to-become-global-gaming-hub

Connect with our Business Setup Experts to know more: hidubai@smartzonesuae.com
+971 529604444 / +971 43614555

UAE To Host First Gulf-Only Esports Competition In Push To Become Global Gaming Hub

Continuing its commitment to fostering the UAE’s burgeoning gaming industry, True Gamers, a leading international network of esports clubs, has announced plans to host the first-ever esports competition solely involving countries within the Arabian Gulf. This initiative follows the successful execution of the inaugural amateur esports tournament between Dubai and Sharjah earlier this year.

Furthering Esports Development in the UAE and Beyond

Scheduled for the first half of 2024, this upcoming competition marks a significant step towards establishing the UAE as a global gaming hub. Industry experts anticipate the UAE’s esports industry to reach multi-million dollar status within the next five years, solidifying the nation’s position as one of the world’s fastest-growing gaming markets.

Empowering Aspiring Gamers Throughout the Region

Building upon the success of the Dubai-Sharjah tournament, True Gamers aims to organize further amateur competitions throughout the UAE and the wider Gulf region. These initiatives play a crucial role in cultivating a thriving esports culture, fostering a strong gaming community, and stimulating industry growth.

True Gamers: Committed to Advancing the UAE’s Esports Landscape

True Gamers remains dedicated to nurturing the UAE’s esports scene by providing fresh opportunities for local gamers and facilitating their transition into professional careers. By organizing high-quality tournaments equipped with advanced technology, True Gamers strives to create a platform for aspiring esports athletes to showcase their talent and represent their region on the global stage.

Looking Forward to Continued Growth and Success

True Gamers’ leadership emphasizes their commitment to establishing a robust esports culture within the region and empowering young individuals to develop their gaming skills. Through continued support and the organization of additional tournaments, True Gamers aims to solidify the UAE’s position as one of the leading forces within the global gaming landscape, aligning with the nation’s vision to become a thriving hub for the esports industry.

Publish 22 Feb 2024

Source: https://www.arabianbusiness.com/industries/technology/uae-to-host-first-gulf-only-esports-competition-in-push-to-become-global-gaming-hub

Connect with our Business Setup Experts to know more: hidubai@smartzonesuae.com
+971 529604444 / +971 43614555

UAE Tops “Strong & Stable Economy” And Ranks 10th In Global Soft Power

The United Arab Emirates (UAE) has ascended to the 10th position in the prestigious 2024 Brand Finance Soft Power Index, solidifying its position as a leading global soft power. This remarkable achievement underscores the country’s growing influence on the international stage and its commitment to shaping a positive global narrative.

A Cornerstone of Soft Power: A Strong and Stable Economy

The UAE’s economic prowess plays a pivotal role in its overall soft power strategy. Notably, the nation secured the top ranking in the “Strong and Stable Economy” indicator. This accomplishment is a testament to the UAE’s diversification efforts that have successfully reduced its dependence on oil and fostered the growth of dynamic sectors like tourism, technology, renewable energy, and financial services. This diversification has not only bolstered the economy’s resilience against global oil price fluctuations but also paved the way for sustainable growth and new avenues of advancement. Further solidifying its economic credentials, the UAE witnessed a monumental achievement in 2023, with its non-oil foreign trade reaching a record-breaking AED3.5tn ($953bn) despite global economic headwinds. This remarkable feat further cements the UAE’s position as a preferred destination for global investors and talent.

Beyond Economics: A Multi-faceted Approach to Soft Power

The UAE’s soft power extends far beyond its economic prowess. The report acknowledges several key pillars that contribute to the nation’s growing influence:

Active Engagement in International Affairs: The UAE’s balanced foreign policy, its advocacy for peace and development, and its active participation in international organizations contribute significantly to its positive international image.
Visionary Perspective on Future Growth: The country’s strategic investments in innovation and technology infrastructure demonstrate its commitment to shaping a prosperous future and positioning itself as a leader in the global knowledge economy.
Cultivating a Positive Global Image: The UAE’s robust media presence and its successful hosting of major events like Expo 2020 have played a crucial role in shaping a positive public perception and enhancing its global brand recognition.
Commitment to Global Well-being: The UAE’s extensive humanitarian initiatives and its generous support for nations in need solidify its reputation as a responsible global citizen and a champion of human development.
Spearheading Innovation and Technology: The UAE’s dedication to fostering a global hub for innovation is evident in its investments in education, scientific research, and cutting-edge technologies like artificial intelligence and space exploration. This commitment positions the UAE at the forefront of the future economy and serves as a beacon of progress for other nations.
Providing a Safe and Secure Environment: The UAE’s high-quality security system fosters societal stability and creates an exemplary environment for both residents and visitors. This secure environment further enhances the nation’s attractiveness as a global destination.
Embracing Sustainability: The UAE’s steadfast commitment to sustainability is reflected in its impressive rankings in the “Sustainable Cities and Transport” and “Invests in Green Energy and Technology” indicators. This dedication is further underscored by the recent extension of the Year of Sustainability into 2024, signifying the country’s unwavering commitment to environmental stewardship and its leadership in the global green transition.

The UAE’s remarkable ascent in the Brand Finance Soft Power Index is a testament to its consistent efforts to build a positive international reputation and positively impact the world. This achievement signifies the UAE’s emergence as a leading soft power and positions it as a key player in shaping the global landscape for the years to come.

Publish 29 Feb 2024

Source: https://www.arabianbusiness.com/culture-society/uae-named-most-stable-global-economy-and-10th-best-soft-power-in-the-world

Connect with our Business Setup Experts to know more: hidubai@smartzonesuae.com
+971 529604444 / +971 43614555

UAE Implements AED 10,000 Penalty for Late Corporate Tax Registration

The United Arab Emirates (UAE) has implemented an administrative penalty of AED 10,000 (approximately USD 2,700) for businesses that fail to register for Corporate Tax within the designated timeframe established by the Federal Tax Authority (FTA). This new measure, outlined in Cabinet Decision No. 10 of 2024, aims to promote timely compliance with relevant tax regulations and comes into effect on March 1, 2024.

This decision aligns with existing administrative penalties for late registration of other taxes in the UAE, such as excise and value-added tax (VAT). The consistent penalty structure aims to encourage a uniform and responsible approach to tax compliance across various business entities operating in the country.

Businesses operating in the UAE are strongly encouraged to review their corporate tax registration status and ensure compliance with the designated deadlines set by the FTA. Failure to register within the prescribed timeframe will result in the imposition of the aforementioned administrative penalty.

For further information and to ensure complete compliance with UAE Corporate Tax regulations, businesses are advised to consult with qualified tax professionals who can provide tailored guidance based on their specific circumstances.

Publish 27 Feb 2024

Source: https://www.arabianbusiness.com/culture-society/uae-announces-2700-tax-fines/

Connect with our Business Setup Experts to know more: hidubai@smartzonesuae.com
+971 529604444 / +971 43614555

Dubai Prepares To Host The Highly Anticipated 2024 Esports & Games Festival

Under the esteemed patronage of Sheikh Ahmed bin Mohammed bin Rashid Al Maktoum, the Dubai Esports & Games Festival (DEF) proudly announces its 2024 edition, scheduled to take place from April 19 to May 5. This year’s festival promises to be a landmark event, exceeding previous benchmarks and solidifying Dubai’s position as a global hub for gaming and esports.

Ahmed Al Khaja, CEO of Dubai Festivals and Retail Establishment, emphasizes the festival’s significance: “DEF 2024 is more than just an event; it’s a celebration of the passion, skill, and dedication that drives the global gaming community. We aim to empower these communities and elevate the industry’s regional and global standing through innovative experiences and unparalleled engagement opportunities.”

Key Highlights of DEF 2024:

Expansive gaming showcase: Over 50 games will be playable on 200 machines, including 11 unreleased titles and 4 world-first showings, offering a glimpse into the future of gaming.
Global reach: Building on the success of DEF 2023, which attracted 48,200 participants from 91 nationalities, the 2024 edition promises an even more diverse and international audience.
GameExpo: Held at the Dubai World Trade Centre from May 3 to 5, this central event features cutting-edge gaming products, thrilling esports competitions, and interactive activations like cosplay and coding workshops.
Play Beyond: This platform pits top regional and global esports stars against each other, delivering an electrifying spectacle for spectators.
Ramadan online tournaments: The festival caters to the gaming community throughout Ramadan, offering exciting online tournaments.
Nurturing young talent: Initiatives like the Microsoft MakeCode Competition and the Minecraft Education Challenge provide educational programs and opportunities for aspiring gamers and developers.
Industry knowledge exchange: The GameExpo Summit powered by Pocket Gamer Connects offers industry professionals a space for networking, knowledge sharing, and connecting with leaders in the gaming sector.

DEF 2024 promises an immersive and engaging experience for gamers, enthusiasts, and industry professionals alike. It marks a significant step forward in Dubai’s ambition to become a leading global hub for gaming and esports, fostering innovation, community development, and individual growth within this dynamic industry.

As the Dubai Esports & Games Festival (DEF) 2024 ignites Dubai, dive into a world of electrifying competition, cutting-edge innovation, and unparalleled business opportunities. Join the throngs of passionate gamers and industry leaders, and leverage Smart Zones^® UAE’s expertise to launch your dream gaming or esports business. With Dubai’s thriving ecosystem and Smart Zones^® UAE’s streamlined setup process, transform your passion into a reality. Don’t miss this chance to connect, network, and propel your gaming enterprise to new heights. Start your exciting journey at DEF 2024!

Publish 17 Feb 2024

Source: https://www.arabianbusiness.com/industries/technology/dubai-announces-2024-edition-of-esports-games-festival

Connect with our Business Setup Experts to know more: hidubai@smartzonesuae.com
+971 529604444 / +971 43614555

Dubai Municipality showcases its ‘FoodTech for Safety and Efficiency’ program at Gulfood 2024

At Gulfood 2024, Dubai Municipality takes center stage to demonstrate its unwavering commitment to propelling the food sector forward through a meticulously crafted suite of integrated digital programs. These cutting-edge solutions seamlessly streamline import, export, and registration processes for food products, ensuring the highest standards of food safety and quality are meticulously upheld across the entire emirate.

Furthermore, the Municipality embarks on a comprehensive review of its existing digital services, aiming to continuously optimize and enhance their effectiveness. This ongoing review paves the way for the introduction of the groundbreaking Dubai Food Systems Excellence Programme, a prestigious initiative specifically designed to recognize and celebrate establishments that demonstrably excel in the areas of food safety, sustainability, and innovation. This forward-thinking program proudly champions responsible food practices while simultaneously propelling Dubai’s position as a leading global trade hub, ultimately contributing to an improved quality of life for all.

By actively participating in Gulfood, Dubai Municipality extends a crucial platform for educating stakeholders on the intricacies of regulations, processes, and best practices within the realm of food safety. This invaluable knowledge-sharing initiative plays a pivotal role in minimizing food waste within the region, thereby fostering a more sustainable and environmentally conscious food ecosystem. Through this multifaceted approach, Dubai Municipality unequivocally underscores its unwavering dedication to constructing a secure, sustainable, and resilient food system that will continue to flourish and benefit every member of the community.

As the world descends upon Dubai for Gulfood 2024, the ultimate food and beverage event, is this your year to turn your culinary vision into reality? Smart Zones^® UAE stands ready to be your launchpad. Our expert business setup consultants navigate the intricacies of establishing your food business in Dubai, ensuring a smooth and efficient journey. From licensing and permits to visa assistance and ongoing support, we empower you to focus on what you do best – creating amazing food experiences. Join the thriving Dubai food scene at Gulfood 2024, and let Smart Zones^® UAE be your recipe for success.

Publish 19 Feb 2024

Source: https://www.arabianbusiness.com/industries/travel-hospitality/dubai-municipality-highlights-integrated-digital-programmes-for-food-sector-at-gulfood-2024

Connect with our Business Setup Experts to know more: hidubai@smartzonesuae.com
+971 529604444 / +971 43614555