Since the beginning of 2023, several initiatives have come into effect in the UAE, including new Emiratisation rules and a ban on plastics in Ajman and um Al Quwain, and as the fifth month of the year approaches, there is only one month left until a series of deadlines come into effect in June 2023.
Deadlines for taxes and unemployment insurance
From corporate tax to unemployment insurance, here are 3 deadlines UAE companies and employees should be aware of next month.
1.Corporate tax, June 1
The UAE Ministry of Finance issued two decisions which aimed at achieving transparency and clarity in the corporate tax system in the country, which will take effect from the first of June, 2023.
As the Ministerial Resolution No. 82 of 2023 stipulates that taxable entities - including qualifying free zone companies - that acheive revenues in excess of 50 million dirhams are required to prepare and maintain audited financial statements.
2. Emiratisation target, June 30
The Ministry of Human Resources and Emiratisation (MoHRE) recently revealed that by the 30th of June, companies with 50 or more employees must have 1% Emiratis in skilled jobs. This is besides the 2 percent localization that companies must have achieved by the end of last year 2022.
In July 2023, violating companies will be fined for failing to meet the required semi-annual rate for this year, as well as the targets for 2022. A penalty of AED 42,000 will be applied to each non-employee Emirati. The bill is 7,000 dirhams per month for the year 2023. The fines will increase by 1,000 dirhams per year until 2026.
3. Job loss insurance, June 30
Employees who miss the June 30 deadline to sign up for unemployment insurance will have to pay penalties.
However, All public and private sector employees are required to register for the program as per Federal Decree-Law No. 13 of 2022. As the Subscription date opened on the 1st of January, 2023.
As its officially called Involuntary Loss of Employment "ILOE" insurance, since it aims to provide residents with financial security in case, they lose their jobs for any reason other than disciplinary action or resignation.
