October 2020 / United Arab Emirates

October 4 2020

UAE: Cabinet Decision No. (58) of 2020 Regulating Beneficial Owner Procedures

UAE has published and implemented Cabinet Resolution No. 58 of 2020 on the Regulation of Procedures Related to Real Beneficiaries. The Resolution introduces new requirements for entities to disclose its beneficial owners. The main purpose is to enhance transparency of entities registered in the UAE, as well as  to develop effective and sustainable executive and regulatory mechanisms and procedures in respect of beneficial owner data.

The cabinet resolution requires all companies licensed or registered in the UAE (except those in DIFC, ADGM or companies wholly owned by UAE government) to hold and maintain a Register of Beneficial Owners and a Register of Shareholders (or Partners) in their registered office premises.

Furthermore, companies are being required to submit the said Register of Beneficial Owner and Register of Shareholders (or Partners) to their respective licensing authority (the respective Free Zone or the Ministry of Economy), which are free do adopt their own filing terms, such as format and process, and deadlines from 27th of October 2020.

Read the resolution here: UAE Cabinet Resolution No. 58 of 2020

October 15 2020

VAT registration of ‘Sole Establishments’

On the 14th of October, the UAE Federal Tax Authority (FTA) clarified that a natural person owning a number of sole establishments needs to obtain only one VAT registration for all its sole establishments and does not require separate VAT registrations for such establishments.

The VAT registration should be obtained ideally in the name of the natural person that owns the sole establishments. However, if a natural person, owning multiple sole establishments, wishes to obtain the VAT registration in the name of one of its sole establishments, the person may apply to the FTA accordingly.

The value of supplies made by the natural person and all its sole establishments must be aggregated to assess whether the VAT registration threshold has been exceeded.

The FTA further details that it will review such VAT registrations in certain cases and inform the relevant taxable persons of the corrective steps they should take, if any.

A sole establishment (also referred to as sole proprietorship) is a legal form of business which is 100% owned by a natural person. A sole establishment does not have a legal personality that is independent of its owner and is accordingly considered to be the same person as its owner.

VAT registration of Sole Establishments

October 13 2020

The Federal Tax Authority introduces new version of the eDirham across its official channels to pay due taxes

The UAE Federal Tax Authority (FTA) confirms the approval of a new generation of eDirham as a payment channel for paying due taxes. The new eDirhams generation will replace the old version, which will be suspended and will not be available to use for FTA transactions as from the beginning of November 2020. The new generation of eDirham includes 3 cards with different benefits:
  • The 'Hala Card' is a card suitable for new customers who want to make one-time payments. No registration or documents are required, and the card can be topped-up with a balance of up to AED 3,500;
  • The 'Gold Card' is a prepaid card with multiple recharge options, suitable for regular payments and multiple transactions. This card requires registration to provide an additional level of security; and
  • The 'Premium Card' is a customisable prepaid card that requires registration. It is suitable for individual and corporate customers with high balances without a maximum recharge limit.
The FTA press release was published on 12 October 2020 and is available on the FTA's official website.
October 14 2020

Dubai has launched a unique new programme that enables overseas remote working professionals to live in Dubai while continuing to serve their employers in their home country

Dubai launches unique virtual working programme for overseas professionals

  • Programme offers remote workers and their families the opportunity to re-locate to the emirate
  • Remote workers can take advantage of emirate’s strong digital infrastructure, robust connectivity, safe and high-quality lifestyle, global networking opportunities and zero income tax for individuals

Dubai has launched a unique new programme that enables overseas remote working professionals to live in Dubai while continuing to serve their employers in their home country.

The move provides remote workers – and their families - the opportunity to re-locate, on an annual basis, to one of the world’s leading tourism and business destinations and enjoy a safe and high-quality lifestyle underpinned by a strong digital infrastructure that provides seamless connectivity.

Dubai, and the UAE, have been recognised for setting a global model for dealing with the COVID-19 pandemic. The emirate, which opened itself to international tourists on 7 July, has implemented robust safety and hygiene protocols that enabled the reopening of most sectors and destination offerings across the city, including hotels, restaurants, attractions, water and theme parks, beaches, shopping malls and schools and universities.

The World Travel & Tourism Council (WTTC) awarded Dubai the Safe Travels Stamp in acknowledgement of its efforts to ensure the highest standards of hygiene and COVID-19 precautionary measures. The emirate also introduced the ‘Dubai Assured’ stamp to certify that establishments have implemented all public health protocols for the prevention and management of COVID-19.

“The global pandemic has changed how we live and work. As multinationals and leading start-ups across the world accelerate their rates of digital adoption, the need to be physically present to fulfil professional responsibilities has been redefined,” said His Excellency Helal Saeed Almarri, Director General, Dubai’s Department of Tourism and Commerce Marketing. “People continue to prioritise their health, wellbeing and ability to ensure a positive work-life balance. Dubai is uniquely positioned to offer a safe, dynamic lifestyle opportunity to these digitally savvy workers and their families while they continue to work remotely, whether it is for a couple of months or an entire year.”

Dubai’s No. 1 global ranking in e-infrastructure in the latest Digital Quality of Life (DQL) survey validates the emirate’s exceptional digital infrastructure. The new programme also boosts the emirate’s value proposition for start-ups, entrepreneurs and SMEs.

His Excellency Sami Al Qamzi, Director General of Dubai Economy, said: “The virtual working programme further strengthens Dubai’s status as a global business hub and demonstrates its progressive thinking and sustained competitiveness in today’s rapidly changing global landscape. Dubai was recently listed as the second best among 60 global cities for remote working jobs by the CEOWORLD magazine. With its advanced infrastructure, global connectivity and pro-business ecosystem, the virtual working programme gives Dubai a significant opportunity to enhance business practices and maximise growth.”

His Excellency Hamad Buamim, President & CEO of Dubai Chamber of Commerce and Industry, said the launch of the virtual working programme strengthens Dubai's position as a world-class business hub that attracts top talent, companies and investors from around the world. “The new initiative is a testament to the emirate’s ability to quickly adapt to changing market conditions and introduce new measures that improve ease of doing business and enhance its economic competitiveness. The move also reflects Dubai’s ability to create new opportunities for entrepreneurs and professionals to benefit from the city’s advanced digital infrastructure and realise their ambitions in a vibrant innovation-driven business environment.”

To apply for the annual programme, https://www.visitdubai.com/en/sc7/travel-planning/travel-tools/work-remotely-in-dubai.  The programme costs US$287 plus medical insurance with valid UAE coverage and processing fee per person.

Criteria for eligibility under the new programme include:

• Passport with minimum 6 months validity • Health insurance with UAE coverage validity • Proof of Employment from current employer with a one-year contract validity, a minimum of US$5,000 per month salary, last month’s payslip and 3 preceding months’ bank statements • If the applicant is a company owner: proof of ownership of company for one year or more, with an average monthly income of US$5,000 per month, and 3 preceding months’ bank statements

Through the programme, applicants can obtain all services in Dubai, including telecoms, utilities, and schooling, enabling them to experience the distinctive lifestyle enjoyed by people of over 200 nationalities. Applicants will also benefit from Dubai’s zero income tax for individuals.

As one of the world’s top property destinations, Dubai has a vast portfolio of housing options to choose from, including beachfront and city villas and apartments, fully serviced hotel offerings managed by globally-recognised operators, and a diverse selection of short and longer-term holiday home rentals. Widely regarded as a leading entrepreneurial hub, the city also provides exceptional co-working spaces, with flexible packages ranging from hourly rates for meeting rooms to weekly, monthly or quarterly bookings.

For those looking to broaden their contacts, Dubai is the first major global destination to fully open up its MICE sector internationally, providing opportunities for networking events and face to face engagement, which are vital factors in accelerating the revival of key sectors. The full reopening of the sector is testament to the city’s successful handling of the pandemic, and the safety and hygiene protocols in place which prioritise the wellbeing of citizens, residents and visitors.

Promotional video: https://youtu.be/_htPhT4gbzQ

Source: https://mediaoffice.ae/en/news/2020/October/14-10/Dubai-launches-unique-virtual-working-programme-for-overseas-professionals