UAE Enacts Progressive Laws in 2023 to Elevate Expat Living and Business Landscape

In a continued effort to enhance the quality of life for residents and citizens, the United Arab Emirates has introduced and revised several laws in 2023. The objective is to maintain the country’s standing as a leader in expatriate lifestyle, income opportunities, and family stability.

Here are some key legislative changes introduced this year:

Corporate Tax Law (Effective from June 1, 2023)

Companies across the UAE now face a nine percent corporate tax rate, applicable from the beginning of the financial year. The law exempts small and medium businesses below the Dh375,000 threshold from taxation, focusing only on profits accrued rather than total business turnover.

Bankruptcy Law (Effective from May 1, 2024)

A new bankruptcy law, effective May 1, 2024, aims to safeguard the rights of debtors and creditors. The legislation enables a moratorium on creditors’ actions against debtors during the restructuring plan, lasting up to three months and extendable. Debtors are limited to requesting a maximum of six months to repay debts.

Job Loss Insurance Scheme (Implemented from January 1, 2023)

The Involuntary Loss of Employment scheme, applicable to citizens and residents, requires registration since January 1. Employees with a basic salary below Dh16,000 contribute Dh5 per month (plus VAT) and are eligible to receive 60 percent of their average basic salary for three months in case of involuntary job loss.

Surrogacy Law

The UAE has opened up surrogacy to non-Muslim couples, with amendments allowing access to IVF and other fertilization procedures for non-Muslim, unmarried couples.

Civil Marriage Law (Implemented from February 1, 2023)

A new Federal Personal Status Law, effective from February 1, 2023, regulates marriage conditions and procedures for all non-Muslim foreigners. It provides clarity on divorce, child custody, inheritance procedures, wills, and proofs of paternity.

End-of-Service Scheme (Implemented from November 1, 2023)

Implemented on November 1, 2023, this scheme allows UAE employees to invest their gratuity in multiple savings schemes, providing the opportunity to receive benefits and accrued returns from investment funds after terminating their employment.