In an attempt to improve the lives of its civil unions people and residents, the United Arab Emirates has been passing and changing a number of laws in recent years.
To keep up its ranking as the top place for expat lifestyle, incomes, and family stability, the country issued new legislation in 2023 and reexamined others.
1. Corporate tax law
Companies all around the nation were subject to a 9% corporate tax rate starting of June 1, 2023, the start of the fiscal year.
The bill states that only businesses that make more than Dh375,000 a year would have to pay the tax, which is a benefit for small and medium-sized enterprises. The tax will only be applied to actual earnings; it will not be applied to the business’s overall revenue.
2. Bankruptcy
On October 31 of this year, a new bankruptcy law was released; it will take effect on May 1st, 2024.
By preventing separate enforcement procedures for creditors, the new law safeguards the rights and interests of both debtors and creditors. Without regard to a deadline, the court may order a stay of creditors’ actions against debtors until the restructuring plan is approved.
It is possible to prolong the three-month moratorium. Debtors aren’t allowed to request a longer repayment period than six months, though.
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