Dubai Imposes Tax on Foreign Banks: Law No. (1) of 2024 Overview

Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai, issued Law No. (1) of 2024, imposing taxes on all foreign banks operating in Dubai, including private development zones and free zones. Foreign banks licensed to operate in the Dubai International Financial Center are excluded from its provisions for the income generated from, within or through the center.
The law mandates a 20% annual tax on foreign banks’ taxable income, with deduction for corporate tax as per federal decree law No. (47) of 2022 regarding corporate and business tax, if applicable. The law regulates the rules for calculating taxable income, tax return submissions and tax payments, tax auditing the tax return and voluntary declaration, and the duties and procedures related to the tax audit process.
The law specifies the rights of foreign bank and its branches licensed by the UAE Central Bank to operate in Dubai, concerning tax audits and notification procedures. It also permits the objections to the department of finance about the amount of the imposed tax or fine, with specific details as per the law’s requirements.
Regarding administrative violations and fines, the law designates them under the provisions of this law, determined by the Chairman of the Executive Council, with maximum fine of 500,000 dirhams per violation, doubling for repeated violations within 2 years from the date of committing the previous administrative violation, and not to exceed 1 million dirhams. The law also states the tax obligations duration and the rules for calculating time periods.
This law does not override the Corporate Tax Law. Instead, it complements it. The roles of the Department of Finance and the Financial Control Authority remain intact as per this law’s provisions. However, any matters not explicitly addressed in this law and its decisions are subject to the regulations outlined in the Corporate Tax Law and its decisions.

Dubai Leads the Way: Implementation of “Work Package”Initiative to Benefit Thousands of Companies

The UAE government announced the launch of the “Work Package” to manage workers’ services and attract and employ them in private sector, the start of implementation of this initiative is in Dubai as a first stage, to benefit 275,000 companies streamlining procedures for an estimated 10 million transactions annually in Dubai alone.

The UAE government also announced that the next few weeks will witness the implementation of the “work package” in the rest of the Emirates.

Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai confirmed the launch of the “work package” project emphasizing its role in eliminating bureaucratic hurdles to reduce procedures, re-engineer services, and reduce their duration in the federal government. and works to facilitate, simplify and shorten the procedures for residency and work in the country.

” The new project will save 62 million working days for all workers renewing their residency and contracts, which were wasted visiting government headquarters and following up on transactions. Additionally, it will shorten 25 million procedures and 12 million visits, saving significant government and private Expenditures, eliminating bureaucracy, shortening procedures, and facilitating people’s lives.

The initiative aligns with the UAE’s digital transformation and quality of services, and the “Zero Government Bureaucracy” program to simplify and reduce government procedures and eliminate unnecessary procedures and requirements in government work, in a way that raises the levels of efficiency, quality and government flexibility.

UAE: Ministry of Economy Unveils a new Intellectual Propertysystem with 11 Innovative Initiatives

The UAE Ministry of Economy has unveiled a new intellectual property system which featuring 11 initiatives in various fields and applications of intellectual property. The object of the initiatives is to enhance innovation and creativity, and provide a competitive and suitable environment for inventors and creators to develop and transform their ideas into business opportunities and innovative projects.

Abdulla bin Touq Al Marri Minister of the Economy, highlighted the UAE’s major progress in developing a pioneering environment for intellectual property in accordance with the global standards. He emphasized that the new system will increase the revenues of the national intellectual property sector, by exporting national products and services based on innovation and modern technologies to foreign markets, attracting investments by facilitating the registration of trademarks and patents.

The new system comprises 11 initiatives that will be executed in collaboration with the relevant government agencies in the country some of these include:

1- “Patent Hive” initiative: designed to increase patents registration in the country and raise the rate of granting them to innovators and encouraging them to apply for patents within the country as it included a target to reach 6,000 new patents registered in the country by 2026 in cooperation with research and academic institutions.

2- “Instablock” initiative: an swift service that is provided in cooperation with the Communications and Digital Government Regulatory Authority to address copyright infringement complaints regarding live Internet broadcasting.

3- “IP Sport” initiative: aimed at increasing the number of trademarks registeration in the national sports sector, it will be implemented in partnership with the General Sports Authority, in order to enhance awareness of intellectual property rights in the sports sector, and provide awareness campaigns during the activities of the UAE Innovation Month.

4- “Hayyakom” Initiative: will be launched during the UAE’s hosting of the INTA conference, one of the largest trademarks conferences, with the aim of enhancing the country’s attractiveness to international companies and increasing the rates of attraction for brands.

Indicators of Registration of Intellectual Works, Trademarks and Patents In 2023, the Ministry recorded an increase in the registration of various intellectual property:

– Trademark registration applications rose by 9.6% compared to 2022.

– 29.5% increase in the number of registered intellectual works compared to 2022.

-Patent applications grew by 19.5% with total of (5,108) patents registered, up by 13.7% from 2022.