How can an expat owner secure his company's future after his sponsor dies in the U.A.E?

The sponsor of the company Passed away

 Here's how an expat owner can secure their company after the sponsor passes away in the U.A.E

Understanding the Situation:

• Sponsor vs. Ownership: It's crucial to distinguish between the sponsor and the owner of the company. While the sponsor is responsible for visa sponsorship, the expat owner may hold full legal business ownership.

Immediate Actions:

1. Inform Authorities: Notify the relevant authorities, including the Department of Economic Development (DED) and the General Directorate of Residency and Foreign Affairs (GDRFA), about the sponsor's passing.
2. Continue Business Operations: The expat owner, if holding a valid residency visa, can continue managing and operating the company.

Ownership Transfer and Legal Considerations:

1. Probate Process: The deceased sponsor's estate, including any ownership stake in the company, will undergo probate. This process determines the legal heirs and their inheritance rights.
2. Ownership Transfer: Once the heirs are identified, the expat owner may need to negotiate with them to acquire their shares or reach an agreement for continued ownership. This may involve legal procedures to update ownership records with the DED.
3. Visa Sponsorship:
• Temporary Grace Period: The GDRFA typically grants a grace period of 30 days after the sponsor's death for the expat owner to regularize their visa status.
• New Sponsor: The expat owner will need to secure a new sponsor for their residency visa. This could involve finding a new business partner, a family member within the UAE, or utilizing alternative visa options like freelance permits or establishing a company in a free zone.

Seeking Legal Advice:

Consulting with a lawyer specializing in UAE business and immigration law is crucial. They can provide guidance on:

• Navigating the probate process and potential inheritance claims.
• Negotiating ownership transfer with the heirs.
• Complying with visa sponsorship requirements and securing a new sponsor.
• Addressing any other legal or tax implications arising from the situation.

Important Points:

• The specific process may vary depending on the ownership structure of the company, the sponsor's nationality, and the presence of a Will.
• Acting promptly and seeking legal counsel is essential to secure the company's future and ensure the expat owner's continued residency status in Dubai 

Saudi Arabia: New Rules Issued Regulating Foreign National Residency Visas

 Here are the new rules related to foreign national residency visas in Saudi Arabia:

Special Talent Residency Visa: The Saudi Premium Residency Center has announced new expertise requirements for eligibility to obtain the Special Talent Residency Visa. Applicants must demonstrate expertise in scientific research, health care, information technologies, financial services, space and defense, renewable energy, mining, logistics and transport, tourism infrastructure, and food and agriculture.

Here are the key points about this visa:

 Eligibility Criteria: Applicants must demonstrate expertise in scientific research, health care, information technologies, financial services, space and defense, renewable energy, mining, logistics and transport, tourism infrastructure, and food and agriculture.

The applicant’s expertise should align with the specified categories to qualify for this visa.

Duration: The Special Talent Residency Visa has a duration of five years.

It can be renewed for one more term if the applicant continues to meet the eligibility criteria.

Benefits: This visa holder has the right to live and work in Saudi Arabia without requiring a sponsor. It provides an opportunity for foreign nationals to contribute their expertise to the country’s economy.

Visa holders can freely leave and re-enter Saudi Arabia.

Application Process: Applicants need to submit relevant documents, including proof of expertise, a valid passport, a clean criminal record, financial solvency, and an updated health report. The application process involves meeting specific requirements and demonstrating eligibility.

Significance: The Special Talent Residency Visa aims to attract skilled professionals, researchers, and experts to Saudi Arabia. It contributes to the country’s development by encouraging foreign investment and knowledge transfer.

Remember that this visa is a significant step toward creating a more diverse and dynamic workforce in Saudi Arabia. If you have any further questions or need additional information, feel free to ask!

Exit-Entry Work Residency Visa: The General Directorate of Passports has removed the previous regulation’s three-year ban on holders of Exit-Entry Residency Visas who, having left the country, failed to return before the expiration of their visas. Foreign nationals who violated exit-entry visa requirements can now reenter the country without any restrictions. 

Let me provide you with information about the Exit-Entry Work Residency Visa in Saudi Arabia: 

Purpose:

The Exit-Entry Work Residency Visa allows individuals legally residing and working in Saudi Arabia to travel outside the country and return within a stipulated time.

Types of Exit-Entry Visas:

There are two types of Exit-Entry Visas:

Single Exit Reentry Visa: Allows a single exit from and re-entry into Saudi Arabia within its validity period.

Multiple Exit Reentry Visa: Permits multiple exits and re-entries within its validity.

Requirements for Employees (Self-Exit Reentry Visa):

Passport validity: At least 3 months beyond the visa period.

Iqama (residency permit) validity: 3 months beyond the visa duration.

Maximum visa duration: 30 days.

Procedure:

Log in to your Absher account.

Click on the “My Services” tab.

Select “Passports” and then click on “Visa Requests”.

Choose “Exit Re-entry Visa (Single)”, specify the return date (within 30 days), and confirm the request.

The employer has 10 days to approve or reject the request. If approved, the employee has 5 days to issue the exit re-entry visa.

Requirements for Dependents:

Passport validity: 3 months beyond the visa period.

Iqama validity: The Iqama holder must return 7 days before the Iqama expiry date.

Payment of the exit re-entry visa fee.

No newborn dependents without an Iqama in Saudi Arabia.

No unpaid violations.

Recent Changes:

The General Directorate of Passports lifted the three-year ban on expatriates who failed to return before the expiry of their exit and re-entry visas. This decision, effective from January 16, followed demands from businessmen and overturned the previous Council of Ministers’ ruling.

Conditions include settling traffic fines, having no visa violations, valid visa absence, a passport validity of 90 days, and fingerprint capture for visa issuance1.

Remember that the Exit-Entry Work Residency Visa facilitates travel while maintaining legal status in Saudi Arabia.

Premium Residency Visa Modifications:

Royal Decree No. M/106 introduced two important modifications to the Premium Residency Visa Law:

The age limit for holding a Premium Residency Visa has been adjusted to allow foreign nationals who are less than 21 years of age to apply for this visa. Previously, the age requirement was not less than 21 years.

Foreign nationals holding Premium Residency Visas may now apply for Saudi citizenship, which was previously prohibited. This change opens up new opportunities for long-term residency in Saudi Arabia.

Eligibility for Premium Residency Visa: Let’s discuss the eligibility criteria for the Premium Residency Visa in Saudi Arabia. This visa is designed to attract foreign nationals who wish to live and work in the country without requiring a sponsor. Here are the key points:

 Age Requirement:

Applicants must be at least 21 years of age to be eligible for the Premium Residency Visa.

Clean Criminal Record:

Applicants should have a clean criminal record with no precedents.

Financial Solvency:

Proof of financial stability is required. Applicants must demonstrate their ability to support themselves during their stay in Saudi Arabia.

Health Report:

An updated health report confirming freedom from contagious diseases is necessary.

Legal Current Residency Status (if applying from within the kingdom):

Applicants already residing in Saudi Arabia must provide proof of their legal current residency status.

Benefits of Premium Residency:

Holders of the Premium Residency Visa enjoy various privileges, including the right to invest in the Saudi Capital Market.

They can freely leave and re-enter Saudi Arabia without restrictions.

Remember that the Premium Residency Visa is a significant step toward attracting wealthy foreigners, investors, and skilled professionals to contribute to Saudi Arabia’s economy. 

Caution-It is illegal to take photos of people without their consent in the U.A.E

 Photos of people without their consent are illegal in the United Arab Emirates (UAE). It's considered a breach of privacy and is punishable by law. Here's a breakdown of the legalities:

Taking Photos Without Consent is a Crime in the UAE

·       Relevant Law: Federal Decree-Law No. 34 of 2021, also known as the UAE Cybercrimes Law, covers this offense.

·       Penalties: The law prescribes a penalty of imprisonment for at least six months and/or a hefty fine ranging from 150,000 to 500,000 UAE Dirhams (AED) for taking photos of others without their consent.

·       Sharing Photos: Sharing such photos online or through other means further aggravates the offense.

It's important to remember that ignorance of the law isn't an excuse. Always err on the side of caution and seek consent before taking photos of people in the UAE.

Federal Decree-Law No. 34 of 2021, also known as the UAE Cybercrimes Law, was introduced in the UAE in 2021 and came into effect in January 2022. This law focuses on combating rumors and various cybercrimes.

Here's a summary of the law's key points:

• Combats Online Misuse: The law aims to establish a legal framework to address the misuse of online technologies.
• Protects Online: It enhances protection for individuals from online crimes committed through information technology, networks, and platforms.
• Secures Government Systems: It safeguards government websites and databases from cyberattacks.
• Combats Rumors & Fake News: The law tackles spreading rumors and fake news online.
• Protects Privacy: It also safeguards electronic privacy and personal rights.

While Federal Decree-Law No. 34 of 2021 doesn't solely focus on photography, it covers taking photos without consent under the invasion of privacy clause.

 

 

How can an employer impose a labour ban on employees in the United Arab Emirates?

How can an employer impose a labour ban on employees

 Yes, an employer can impose a Labour Ban on an employee in the UAE under certain circumstances. The Labour Law (Federal Decree-Law No. 33 of 2021) doesn't explicitly mention "Labour Bans" but creates situations where an employee might be restricted from seeking new employment for a specific period. 

Here's how an employer can potentially trigger a Labour Ban: 

Violation of Employment Contract: If an employee breaches the terms of their employment contract in a significant way (e.g., abandoning the job, absconding), the employer might report them to the Ministry of Human Resources and Emiratisation (MoHRE). MoHRE can then restrict the employee from obtaining a new work permit for a period. 

End of Contract: In some cases, even if the contract ends normally, the employer might have the discretion to request a Labour Ban from MoHRE. However, the reasons for such a request must be legitimate and verifiable.

Important Considerations:

MoHRE Approval: MoHRE has the final say on imposing a Labour Ban. They will investigate the employer's complaint before deciding.

Employee Rights: Employees have the right to challenge unfair Labour Bans imposed by employers through MoHRE or the court system.

Ban Duration: The Labour Ban typically lasts for 6 months to 1 year, depending on the severity of the situation.

Here are some resources for further information:

MoHRE Website: The MoHRE website provides a good starting point for understanding Labour Bans [UAE labour ban ON u.ae].

Legal Counsel: Consulting with a lawyer specializing in UAE Labour Law is highly recommended for navigating specific situations and understanding your rights if facing a Labour Ban.

Exceptions to Employment Bans in the UAE

There are some situations where an employee may not receive a labour ban, even if they violate their contract. These exceptions are outlined in Cabinet Resolution No. 1 of 2022. Cabinet Resolution No. 1 of 2022 deals with the implementation of Federal Decree-Law No. 33 of 2021, also known as the new UAE Labor Law.

• Residence Visa: by Article 11 and Article 28 (2) of Cabinet Resolution No. 1 of 2022, an employment ban may not apply to employees who hold a family-sponsored UAE residence visa, you likely won't get a labour ban.
• Same Employer: If you're applying for a new work permit with the same company, a ban is usually not applied.
• In-Demand Skills: If you possess professional qualifications, skills, or knowledge that the UAE needs, you may be exempt.
• Golden Visa Holders: Those with a Golden Residency visa typically avoid labour bans.
• Other Exemptions: The Ministry of Human Resources and Emiratisation (MOHRE) may designate other professional categories as exempt.

Recommendations

Generally, it's recommended to resign by following the stipulated notice period to avoid any complications. However, if you fall under one of the exempt categories mentioned above, you likely won't face a labor ban.

Remember, this information is for general knowledge only. If you're unsure about your specific situation, it's always best to consult with a lawyer specializing in UAE labour law.

U.A.E Eyes Global Minimum Tax: Will Big Business Face a Bigger Bite in 2025?

 There have been a few recent developments concerning corporate tax in the UAE:

• UAE Pass for Tax Portal Access: Since late September 2023, the Federal Tax Authority has required the use of the UAE Pass to access the tax portal. This applies to corporate tax, VAT, excise tax, and even filing claims for refunds or appeals. [National News Article on UAE Corporate Tax Updates]
• New Giban for Corporate Tax: Companies registered for corporate tax now have unique Giban (Generated International Bank Account Numbers) specifically for this purpose. These differ from Gibans used for VAT purposes. This aims to streamline corporate tax payment processing. [National News Article on UAE Corporate Tax Updates]
• Implementation of Pillar Two Rules: The UAE is establishing the groundwork to implement the OECD's Pillar Two minimum tax rate of 15% expected to be rolled out in 2025. Public consultation is expected in early 2024. [Clyde & Co - Developments for UAE Family Businesses]

These updates focus on administrative aspects of corporate tax rather than any changes to tax rates or exemptions.

U.A.E -Implementation of Pillar Two Rules

Yes, the UAE is considering implementing the Global Minimum Tax, but with a potential delay. Here's a breakdown of the situation:

• The OECD's Global Minimum Tax, also known as Pillar Two, proposes a minimum corporate tax rate of 15%.
• The UAE currently does not levy a federal corporate income tax, although it introduced a 9% corporate income tax for businesses operating outside of free zones in June 2023.
• In March 2024, the UAE Ministry of Finance held a public consultation to gather feedback on implementing the Pillar Two rules. This suggests they are at least considering it.
• However, the consultation concluded in April 2024, and there haven't been any announcements about a definitive implementation date. Reports suggest the UAE might not implement Pillar Two in 2024 

In summary:

• The UAE is exploring the possibility of implementing the Global Minimum Tax under Pillar Two.
• They held a public consultation in March 2024, indicating serious consideration.
• Implementation seems unlikely for 2024, with 2025 as a potential target year.

It's important to stay updated on official announcements from the UAE Ministry of Finance for the latest developments. 

• Expected Timeline: The UAE is aiming to have Pillar Two in place by 2025.
• Public Consultation: Discussions and consultations with stakeholders regarding the specific implementation details of Pillar Two are anticipated for early 2024. This suggests the UAE government is finalizing the framework.
• Legal Updates: The Ministry of Finance has already amended the Corporate Tax Law to prepare for Pillar Two.

Resources for Further Reading:

• Update on UAE Pillar Two Implementation: [Orbitax Tax News on UAE Pillar Two] (you can search for this by title)
• Analysis of Pillar Two and UAE Free Zones: [Aurifer Tax - Pillar Two and UAE Free Zones]

U.A.E -Implementation of Pillar Two Rules

Pillar Two of the OECD's Global Minimum Tax framework aims to ensure multinational corporations (MNCs) pay a minimum tax rate of 15% globally. Here's a breakdown of the key details:

Core Concept:

• Effective Tax Rate (ETR): This is a calculated tax rate based on a company's profit divided by its tax bill.
• Top-up Tax: If an MNC's ETR in a particular country falls below the 15% minimum, the parent company (or another entity in the group) will be subject to a "top-up tax" to ensure the effective tax rate reaches 15%.

Implementation Mechanisms:

• Qualified Domestic Minimum Top-up Tax Rule: This gives priority to the country where the MNC operates with the low tax rate. This country can impose a top-up tax to ensure the minimum rate is met.
• Income Inclusion Rule (Subject to a Tax Treaty Override): If the top-up tax isn't applied in the low-tax country, the parent company (or another entity in the group) can be taxed on the difference between the subsidiary's profit and the minimum tax rate multiplied by its profit. This essentially forces the group to pay the top-up tax elsewhere.
• Undertaxed Profits Rule: This acts as a backstop. If neither of the above rules are applied, the parent company's country of residence can tax the difference between the minimum rate and the ETR in the low-tax country.

Who is Affected?

• The rules generally apply to large Multinational Enterprises (MNEs) with a consolidated group revenue exceeding EUR 750 million.

Implementation Timeline:

• A global implementation date of 2024 was initially proposed, but this has been pushed back.
• The UAE, like many countries, is targeting implementation by 2025.

Additional Points:

• There are mechanisms to avoid double taxation and ensure the system operates efficiently.
• Public consultations regarding specific implementation details are crucial, and the UAE is expected to hold these consultations in early 2024.

For further information, you can refer to resources like the OECD's documentation on Pillar Two or tax advisory firm publications on the topic.