UAE: 3 deadlines that will go into effect in June for companies, employees

Penalties include a fine of Dh42,000, which will increase by Dh1,000 annually until 2026

By Web Desk

Published: Mon 1 May 2023, 11:19 AM

Last updated: Sat 27 May 2023, 2:55 PM

Since the start of 2023, several initiatives have been implemented in the UAE, including new Emiratisation rules and a ban on plastics in Ajman and Umm Al Quwain. With June just a few days away, more deadlines are coming into effect.

From corporate tax to unemployment insurance, here are 3 deadlines companies and employees in the UAE should keep an eye out for:

1. Corporate tax, June 1

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The UAE's Ministry of Finance has issued two decisions that seek to bring transparency and clarity to the country's corporate tax regime, which will come into effect from June 1, 2023.

Ministerial Decision No. 82 of 2023 specifies that taxable entities— including qualifying free zone companies — that derive revenues of over Dh50 million are required to prepare and maintain audited financial statements.

2. Emiratisation target, June 30

The Ministry of Human Resources and Emiratisation (MoHRE) recently announced that by June 30, companies with 50 employees or more must have 1 per cent of Emiratis in skilled jobs. This is in addition to the 2 per cent Emiratisation that companies must have had achieved by the end of 2022.

In July 2023, fines will be applied on non-compliant companies for not achieving the required half-yearly rate for this year as well as the 2022 targets. A penalty of Dh42,000 will be applied for every Emirati not hired. The calculation is Dh7,000 per month for 2023. The fines will increase by Dh1,000 annually until 2026.

3. Job loss insurance scheme, June 30

Employees who fail to meet the June 30 deadline for unemployment insurance subscription will have to pay penalties.

It is mandatory for all employees of both public and private sectors to sign up for the scheme under Federal Decree-Law No. 13 of 2022. Subscription opened on January 1, 2023.

Officially called Involuntary Loss of Employment (ILOE) insurance, it seeks to provide residents with financial security in case they lose their jobs due to reasons other than disciplinary action or resignation.

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