Thursday, April 25, 2024

Caution-It is illegal to take photos of people without their consent in the U.A.E

 Photos of people without their consent are illegal in the United Arab Emirates (UAE). It's considered a breach of privacy and is punishable by law. Here's a breakdown of the legalities:

Taking Photos Without Consent is a Crime in the UAE

·       Relevant Law: Federal Decree-Law No. 34 of 2021, also known as the UAE Cybercrimes Law, covers this offense.

·       Penalties: The law prescribes a penalty of imprisonment for at least six months and/or a hefty fine ranging from 150,000 to 500,000 UAE Dirhams (AED) for taking photos of others without their consent.

·       Sharing Photos: Sharing such photos online or through other means further aggravates the offense.

It's important to remember that ignorance of the law isn't an excuse. Always err on the side of caution and seek consent before taking photos of people in the UAE.

Federal Decree-Law No. 34 of 2021, also known as the UAE Cybercrimes Law, was introduced in the UAE in 2021 and came into effect in January 2022. This law focuses on combating rumors and various cybercrimes.

Here's a summary of the law's key points:

  • Combats Online Misuse: The law aims to establish a legal framework to address the misuse of online technologies.
  • Protects Online: It enhances protection for individuals from online crimes committed through information technology, networks, and platforms.
  • Secures Government Systems: It safeguards government websites and databases from cyberattacks.
  • Combats Rumors & Fake News: The law tackles spreading rumors and fake news online.
  • Protects Privacy: It also safeguards electronic privacy and personal rights.

While Federal Decree-Law No. 34 of 2021 doesn't solely focus on photography, it covers taking photos without consent under the invasion of privacy clause.

 

 

Sunday, April 21, 2024

How can an employer impose a labour ban on employees in the United Arab Emirates?

How can an employer impose a labour ban on employees
 Yes, an employer can impose a Labour Ban on an employee in the UAE under certain circumstances. The Labour Law (Federal Decree-Law No. 33 of 2021) doesn't explicitly mention "Labour Bans" but creates situations where an employee might be restricted from seeking new employment for a specific period. 

Here's how an employer can potentially trigger a Labour Ban: 

Violation of Employment Contract: If an employee breaches the terms of their employment contract in a significant way (e.g., abandoning the job, absconding), the employer might report them to the Ministry of Human Resources and Emiratisation (MoHRE). MoHRE can then restrict the employee from obtaining a new work permit for a period. 

End of Contract: In some cases, even if the contract ends normally, the employer might have the discretion to request a Labour Ban from MoHRE. However, the reasons for such a request must be legitimate and verifiable.

Important Considerations:

MoHRE Approval: MoHRE has the final say on imposing a Labour Ban. They will investigate the employer's complaint before deciding.

Employee Rights: Employees have the right to challenge unfair Labour Bans imposed by employers through MoHRE or the court system.

Ban Duration: The Labour Ban typically lasts for 6 months to 1 year, depending on the severity of the situation.

Here are some resources for further information:

MoHRE Website: The MoHRE website provides a good starting point for understanding Labour Bans [UAE labour ban ON u.ae].

Legal Counsel: Consulting with a lawyer specializing in UAE Labour Law is highly recommended for navigating specific situations and understanding your rights if facing a Labour Ban.

Exceptions to Employment Bans in the UAE

There are some situations where an employee may not receive a labour ban, even if they violate their contract. These exceptions are outlined in Cabinet Resolution No. 1 of 2022. Cabinet Resolution No. 1 of 2022 deals with the implementation of Federal Decree-Law No. 33 of 2021, also known as the new UAE Labor Law.

  • Residence Visa: by Article 11 and Article 28 (2) of Cabinet Resolution No. 1 of 2022, an employment ban may not apply to employees who hold a family-sponsored UAE residence visa, you likely won't get a labour ban.
  • Same Employer: If you're applying for a new work permit with the same company, a ban is usually not applied.
  • In-Demand Skills: If you possess professional qualifications, skills, or knowledge that the UAE needs, you may be exempt.
  • Golden Visa Holders: Those with a Golden Residency visa typically avoid labour bans.
  • Other Exemptions: The Ministry of Human Resources and Emiratisation (MOHRE) may designate other professional categories as exempt.

Recommendations

Generally, it's recommended to resign by following the stipulated notice period to avoid any complications. However, if you fall under one of the exempt categories mentioned above, you likely won't face a labor ban.

Remember, this information is for general knowledge only. If you're unsure about your specific situation, it's always best to consult with a lawyer specializing in UAE labour law.

Tuesday, April 16, 2024

U.A.E Eyes Global Minimum Tax: Will Big Business Face a Bigger Bite in 2025?

 There have been a few recent developments concerning corporate tax in the UAE:

  • UAE Pass for Tax Portal Access: Since late September 2023, the Federal Tax Authority has required the use of the UAE Pass to access the tax portal. This applies to corporate tax, VAT, excise tax, and even filing claims for refunds or appeals. [National News Article on UAE Corporate Tax Updates]
  • New Giban for Corporate Tax: Companies registered for corporate tax now have unique Giban (Generated International Bank Account Numbers) specifically for this purpose. These differ from Gibans used for VAT purposes. This aims to streamline corporate tax payment processing. [National News Article on UAE Corporate Tax Updates]
  • Implementation of Pillar Two Rules: The UAE is establishing the groundwork to implement the OECD's Pillar Two minimum tax rate of 15% expected to be rolled out in 2025. Public consultation is expected in early 2024. [Clyde & Co - Developments for UAE Family Businesses]

These updates focus on administrative aspects of corporate tax rather than any changes to tax rates or exemptions.

U.A.E -Implementation of Pillar Two Rules

Yes, the UAE is considering implementing the Global Minimum Tax, but with a potential delay. Here's a breakdown of the situation:

  • The OECD's Global Minimum Tax, also known as Pillar Two, proposes a minimum corporate tax rate of 15%.
  • The UAE currently does not levy a federal corporate income tax, although it introduced a 9% corporate income tax for businesses operating outside of free zones in June 2023.
  • In March 2024, the UAE Ministry of Finance held a public consultation to gather feedback on implementing the Pillar Two rules. This suggests they are at least considering it.
  • However, the consultation concluded in April 2024, and there haven't been any announcements about a definitive implementation date. Reports suggest the UAE might not implement Pillar Two in 2024 

In summary:

  • The UAE is exploring the possibility of implementing the Global Minimum Tax under Pillar Two.
  • They held a public consultation in March 2024, indicating serious consideration.
  • Implementation seems unlikely for 2024, with 2025 as a potential target year.

It's important to stay updated on official announcements from the UAE Ministry of Finance for the latest developments. 

  • Expected Timeline: The UAE is aiming to have Pillar Two in place by 2025.
  • Public Consultation: Discussions and consultations with stakeholders regarding the specific implementation details of Pillar Two are anticipated for early 2024. This suggests the UAE government is finalizing the framework.
  • Legal Updates: The Ministry of Finance has already amended the Corporate Tax Law to prepare for Pillar Two.

Resources for Further Reading:

  • Update on UAE Pillar Two Implementation: [Orbitax Tax News on UAE Pillar Two] (you can search for this by title)
  • Analysis of Pillar Two and UAE Free Zones: [Aurifer Tax - Pillar Two and UAE Free Zones]

U.A.E -Implementation of Pillar Two Rules

Pillar Two of the OECD's Global Minimum Tax framework aims to ensure multinational corporations (MNCs) pay a minimum tax rate of 15% globally. Here's a breakdown of the key details:


Core Concept:

  • Effective Tax Rate (ETR): This is a calculated tax rate based on a company's profit divided by its tax bill.
  • Top-up Tax: If an MNC's ETR in a particular country falls below the 15% minimum, the parent company (or another entity in the group) will be subject to a "top-up tax" to ensure the effective tax rate reaches 15%.

Implementation Mechanisms:

  • Qualified Domestic Minimum Top-up Tax Rule: This gives priority to the country where the MNC operates with the low tax rate. This country can impose a top-up tax to ensure the minimum rate is met.
  • Income Inclusion Rule (Subject to a Tax Treaty Override): If the top-up tax isn't applied in the low-tax country, the parent company (or another entity in the group) can be taxed on the difference between the subsidiary's profit and the minimum tax rate multiplied by its profit. This essentially forces the group to pay the top-up tax elsewhere.
  • Undertaxed Profits Rule: This acts as a backstop. If neither of the above rules are applied, the parent company's country of residence can tax the difference between the minimum rate and the ETR in the low-tax country.

Who is Affected?

  • The rules generally apply to large Multinational Enterprises (MNEs) with a consolidated group revenue exceeding EUR 750 million.

Implementation Timeline:

  • A global implementation date of 2024 was initially proposed, but this has been pushed back.
  • The UAE, like many countries, is targeting implementation by 2025.

Additional Points:

  • There are mechanisms to avoid double taxation and ensure the system operates efficiently.
  • Public consultations regarding specific implementation details are crucial, and the UAE is expected to hold these consultations in early 2024.

For further information, you can refer to resources like the OECD's documentation on Pillar Two or tax advisory firm publications on the topic. 

Monday, April 15, 2024

Important Challenges Faced by Employees Due to Job Loss in the U.A.E

 Losing a job in the UAE can be particularly difficult due to the unique structure of the employment market. Here are some of the most significant challenges employees face:

Financial Strain:

  • Limited Safety Net: Unlike some countries, the UAE lacks a universal minimum wage, leaving many vulnerable to financial hardship after job loss.
  • Temporary Support: The Involuntary Loss of Employment (ILOE) scheme offers some financial assistance, but it's only a portion of the salary for a limited duration.
  • Debt Management: Job loss can make managing existing financial obligations like rent, loans, and credit card payments difficult.

Visa and Residency:

  • Visa Dependence: Many UAE visas are tied to employment. Losing a job can lead to visa cancellation and a short timeframe to leave the country, creating stress for employees with families in the UAE.
  • End-of-Service Benefits: Employees are entitled to gratuity payments upon job termination after a specific period. However, disputes or delays in receiving these benefits can worsen financial difficulties.

Legal Issues:

  • Labor Disputes: Disagreements with employers regarding termination, unpaid wages, or benefits can arise. Understanding and navigating UAE labor laws is crucial in such situations.
  • Notice Period: Employment contracts typically have a notice period for termination by either party. Leaving abruptly without proper notice could lead to legal repercussions.

Additional Challenges:

  • Competitive Job Market: Finding a new job quickly can be difficult, especially in some sectors.
  • Emotional Impact: Job loss can be emotionally draining, adding to the overall stress of the situation.

Seeking Support:

Here are some resources that can help employees facing job loss in the UAE:

 Job Loss Insurance in the UAE

Traditionally, there hasn't been standalone "job loss insurance" available in the UAE. However, a recent development offers some financial protection in case of involuntary job loss:

  • Involuntary Loss of Employment (ILOE) Scheme: This government-introduced program provides partial financial support to employees who lose their jobs involuntarily (through termination, not resignation or disciplinary action).

Key Points about ILOE:

  • Eligibility: Applies to most private and public sector employees (exceptions include investors, domestic workers, temporary workers, and those under 18).
  • Benefits: Offers up to 60% of the average monthly salary over the past 6 months, capped at specific amounts (Category A: maximum 10,000 AED/month, Category B: maximum 20,000 AED/month).
  • Duration: Pays for a maximum of 3 consecutive months per claim.
  • Requirements: Requires contributions from the employee for at least 12 consecutive months before a claim can be made.

Limitations of ILOE:

  • Temporary Support: It's not a long-term solution and only provides limited financial assistance for a maximum of 3 months.
  • Contribution Requirement: Employees need to have been contributing for at least a year to be eligible.

Alternatives to Consider:

  • Emergency Savings: Having a well-funded emergency savings account can act as a buffer during a job loss.
  • Debt Management Plans: If facing debt issues due to job loss, consider consulting a financial advisor or exploring debt relief options.

Resources:

Friday, April 12, 2024

Important news: You can easily verify the Validity of your U.A.E Visa Online

 Here is a guide on how to check the validity of your visa in the U.A.E

There are two main way

Verify your Visa Validity In the UAE

s to verify your UAE visa validity depending on where your visa was issued:

Federal Authority for Identity and Citizenship (ICP): If your visa applies to Abu Dhabi, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah, you can check its validity online through the ICP website.

Amer service: This applies to Dubai visas. You can check the validity online or contact Amer service by phone.

Using the GDRFA Website

Here's a breakdown of the methods:

Online(ICP):

Visit the UAE government website: [UAE government website]

Navigate to "Track visa application and validity" under "Visa and Emirates ID".

Select "Check visa validity (issuance and expiry dates)".

Enter your passport information and nationality.

Click "Search" to view your visa details.

Track Your Dubai Visa Application Online with Ease

Applying for a Dubai residency visa? You can conveniently check its status online using either the GDRFA website or their mobile app. Here's how:

Using the GDRFA Website:

1.    Visit the GDRFA website (you can find it by searching for "GDRFA Dubai").

2.    Click on the option labeled "Residence Validity."

3.    Enter the required information, which typically includes your residence visa file number. You can find this number on your visa page in your passport.

4.    Complete the captcha code to verify you're not a robot.

5.    Click "Submit" to view your visa application status.

Using the GDRFA Mobile App:

1.    Download and install the GDRFA Dubai app on your smartphone.

2.    Open the app and navigate to the "Services" tab.

3.    Choose "File Status Inquiry" from the list of services.

Depending on your visa type, select one of the following options:

  • Entry Permit Inquiry: This applies if you have a labor contract but haven't received your visa yet.
  • Residency Inquiry: Choose this option if your entry permit has been approved and you're now applying for residency.

4.    Enter all the required information in the app.

5.    Double-check the details you entered and then tap "Inquire."

If everything is correct, you should see a green checkmark on the screen along with some details about your visa application.

Remember:

·       You can find contact information for GDRFA on their website in case you encounter any issues or have further questions.

·       Online (Amer - Dubai only):

·       Amer service doesn't currently offer online visa validity checks.

·       Phone (Amer - Dubai only):

·       Call Amer service within the UAE: 800 5111

·       Call Amer service from outside the UAE: +9714-313-9999