UAE’s non-Muslim expats now register a will

Non-Muslim expatriates can now dictate where they want their assets to go when they die, after a decision to change rules governing wills. The changes will ensure there is no dispute or confusion over a deceased’s belongings and custody of children, and expats can register a will for about Dh500.

Abu Dhabi has had no way of registering wills drafted in the UAE or an expat’s home country.

Only Sharia was applied.

In most cases, a court would freeze the assets to ensure all heirs were contacted before the estate was split up, resulting in long delays and high legal costs. Yousef Al Ibri, Undersecretary at the judicial department, said the move was recognition of the "realistic needs" of all sectors of society in Abu Dhabi.

It laid down the legislative framework to protect the rights and freedoms of people of different faiths.

Mr Al Ibri said these rights would now be protected under the state’s constitution, "which affirms the enjoyment of foreigners of rights and freedoms prescribed in international charters".

 "This will have a positive effect on attracting people of distinguished expertise to work and live in Abu Dhabi," he said. "This decision will constitute a quality leap towards enhancing the competitive position of Abu Dhabi emirate, establishing it as an ideal destination for residence and investment."

Sheikh Mansour bin Zayed, Deputy Prime Minister and Chairman of the Abu Dhabi Judicial Department, approved the changes that came into effect on Tuesday.

Wills in Abu Dhabi will also be registered in English, not Arabic.

Dubai International Financial Centre’s Wills and Probate Registry, which is linked to the Dubai Government, is the only registration system for wills in the Middle East and North Africa. It has registered 2,500 wills since its inception in 2015.

Sean Hird, director of DIFC Wills and Probate Registry, said the announcement of a registry of wills and probate in Abu Dhabi was a positive move for people living and investing in the emirate. "At DIFC, we have been providing eligible individuals with the option for the past two years and now offer various options for people to protect their assets in Dubai and now RAK," said Mr Hird.

"We hope this encourages asset owners to tackle their significant ‘life admin’ by thinking ahead to safeguard their assets."

The death of a breadwinner or homeowner can mean assets being frozen for months, and tens of thousands of dirhams in legal fees, particularly in the event of a dispute.

Some Abu Dhabi law firms have been writing invalid wills for expats, despite the documents having no legal standing.

Hesham Elrafei, a legal consultant and founder of the UAE legal portal Lex Animata, said the cost of registering a will in Abu Dhabi was expected to be negligible.

Mr Elrafei said those with property on Reem, Yas and Saadiyat islands would also be able to ensure their properties were distributed without dispute.

"This is an affordable service, which will not exceed Dh500 a will and the door is now open for all non-Muslims living in Abu Dhabi to register as per their choice," he said.

"This is to secure and protect their assets and properties in Abu Dhabi, which includes real estate, bank accounts, stocks, cars and end-of-service gratuity.

"A non-Muslim expat can now easily register his will in English to whoever he chooses to, whether his wife, daughter or any member of the family."

FAWRI - UAE Government e-Visa online application system

 

This online system allows companies to apply, re-apply, track and complete their immigration procedures for issuing visas from the comfort of their office.

From 1st April 2013, all employment entry permit/visa applications had to be submitted online using the username and password of the registered establishment and companies must apply and pay for FAWRI. Hard copies of the ‘pink’ employment entry permit were no longer be issued from Immigration. These entry permits can now be printed directly from the online system once it has been submitted and approved. All companies need to be registered at Immigration to obtain their usernames and passwords.

Subscribe features in the system (Fawri)

•     You do not need Impost service
•     Visa is obtained immediately
•     You do not need to sponsor’s signature

    Required document to participate in Fawri:

•      Copy of the business license
•     Copy of the firm card
•     To Whom It May Concern from the authorised signatory inscribed in the firm
•     To Whom It May Concern certificate from the company to use the Fawri system
•     The sponsor or representative (PRO) contact numbers.

    Automated payment service

 

    Issuance of Entry Permits for Workers in Government Sector.

    Issuance of Entry Permits for Workers in Private Sector.

    Issuance of Mission Permits for 90 Days.

    Issuance of Short Visit Entry Permits for 30 days.

    Issuance of Long Visit Entry Permits for 90 days.

    Issuance of Tourism Entry Permits.

    Issuance and Renewal of Residency.

Included Emirates:

    Abu Dhabi

    Sharjah

    Ras Al Khaimah

    Um Al Qaiwain

    Fujairah

    Al Ain

 

Late in 2014 FAWRI costs went up – in Abu Dhabi, there is now an AED 2000 Fee plus AED 5000 Deposit required. From 1st September 2015, ALL companies in Dubai will also have to now register with FAWRI as well.

From December 2016, onwards In Abu Dhabi when making employment entry permits/visa applications, Immigration is now checking that companies have correctly registered for FAWRI and have paid the AED 2060 Initial Fee plus the AED 5050 Deposit. Companies will need to submit proof that this has been done in the form of their initial deposit receipt. In addition, there is now an annual fee for the eVisa FAWRI system of AED 1200 payable by all companies in Abu Dhabi.

FAWRI includes the following services

    Entry Permits

    Mission Visas – 90 Days

    Short Visit Entry Permits / Visas – 30 days

    Long Visit Entry Permits / Visas – 90 days

    Tourism Visas / Entry Permits

    Issuance and Renewal of Resident Visas

Business to Start planning for Vat in U.A.E

The VAT will be implemented in U.A.E from January 2018. The rate that is decided for VAT is 5%. The collection of VAT will be done by the government. The companies and the business owners have to maintain proper documentation for the completion of registration process. After that, they will be able to charge the specified amount of VAT on all the goods and services they are providing.

Value added tax (VAT) is a type of tax that is applied to the goods or services produced. It is a form of an informal tax that is also known as a multi-stage tax. The government of Dubai is implementing this tax for the betterment of services that are provided to the residents. With this additional source of finance, the government will be able to provide better services to the people. The VAT is applied on all the goods that are produced in the companies that are registered with VAT. It is the tax that is applied on every step of production and the total amount is calculated after the completion of the production process.

In the UAE, the registration exercise of companies that are above the yearly threshold for VAT is expected to start in less than 3 months from today, as the country gears up for implementing the 5 percent levy from January 1, 2018. Businesses that provide taxable goods or services, with annual revenue of more than Dh375,000 will be required to register, while businesses with taxable supplies below Dh375,000 but over Dh187,500 will have the option to register.

The UAE has yet to publish its VAT law but has established a Federal Tax Authority to deal with the levy. The authority will administer, collect and enforce federal taxes and will perform tax audits and administer penalties in cases of non-compliance with the tax laws.

The difference between VAT and general sales tax:

A sales tax and VAT are both a type of consumption tax. For a layman, there is no difference between the sales tax and the VAT. Some may also think that there is no difference between the working of both taxes. However, there is some key difference between both taxes. The sales tax is the one that is imposed on the customers only at the final stage. VAT, on the other hand, is imposed on each and every step of production. Moreover, VAT is also applied on the imports of services and goods to ensure and maintain a proper working of tax.

The preference is given to VAT instead of other sales taxes because, in VAT, the business owners or the companies act as the tax collector for the government. It is a more sophisticated form of tax.

 

The Ministry of Finance will start registering companies that are above the yearly threshold for value added tax in the second half of this year as the country gears up for implementing the 5 percent levy from January 1, 2018.

The ministry announced that businesses that provide taxable goods or services, with annual revenue of more than Dh375,000 will be required to register. Businesses with taxable supplies below Dh375,000 but over Dh187,500 will have the option to register, it said.

Businesses exempt from VAT will not be able to recover from the government the tax incurred on the cost of an item or a service that is not exempt, and it will be up to the business to decide whether to pass on the VAT cost to the consumer.