What are the new laws that are coming to the UAE in 2023?
The government in the UAE is all set to bring in some new laws in 2023 that would change family law, improve employment rights, modify the existing tax laws of the country, and enhance the participation of the UAE within the private sector. These new laws that are to get into practice in 2023 can completely change how people in the UAE live their lives on a day-to-day basis.
So, let’s have a close look at these new laws that are going to be implemented in 2023.
Changes in the existing family law
Since February 2022, all non-Muslim couples living in Abu Dhabi can get married in civil court just like the registry office weddings carried out in Europe or the UK. From February 1st, 2023, this law has been made a nationwide law in the UAE. Hence, according to the all-new Federal Personal Status Law, non-Muslim couples can get married in the UAE in the non-Sharia legal process. This new federal law for all non-Muslim expatriates covers various key family matters like marriage, divorce, child custody, and inheritance.
Additionally, the new family law also intends to grant equal rights to both men and women. There was a time when a couple looking to get a divorce in one of UAE’s local courts would have to go through the Sharia Law. However, this process is significantly different from what they would get to have in their homeland or home country. This is why many people used to get married, divorced, or arrange for a will abroad. Non-Muslim couples living in the UAE would be now able to tie the knot according to the will of both husband and wife. It means there is no need to have consent from the guardian or father of the wife anymore.
There is no requirement to have multiple male Muslim witnesses for the wedding according to the new law. Any couple looking to get a divorce can now do so without needing to prove that anyone in the marriage was at fault, i.e., no-fault marriage. Divorces can even be approved on the first hearing sans any mandatory mediation or family counselling sessions. One can apply for financial requests such as alimony through a “post-divorce request form”. If there are issues relating to child custody after the divorce, they can be resolved with adequate procedures. At one point, the father could request child custody when his son turned 11, and his daughter turned 13. However, now it is upon the court to decide who gets to take custody of the child by keeping in mind the best interests of that child.
When it comes to inheritance laws, the new law provides people with the scope or provision to leave all property to a person of choice through a will. However, if there is no will, half of the individual’s estate will be passed on to the spouse, and the remaining property divided among the children. For all non-Muslims, proof of paternity will be according to marriage or recognition of paternity. DNA tests can be conducted when paternity is unknown.
New employment laws
On January 1st, 2023, the Involuntary Loss of Employment (ILOE) Scheme came into effect. It functions as a type of social security wherein workers have up to 3 months of compensation in the event of them losing their jobs.
This scheme applies to all the foreign and Emirati workers in the public and private sectors. The employees holding jobs in the free zones are an exception to this rule. A grace period of about six months has been provided to employees to subscribe to ILOE.
New corporate tax laws
The businesses in the United Arab Emirates will need to pay corporate tax from the commencement of the financial year starting from June 2023. It will include the standard rate of 9% on all taxable profits of more than Dhs 375,000. The profits up to this amount will be effectively taxed at 0% for supporting start-ups and small businesses.
Tax removal from alcohol
Effective from January 1st, 2023, a 30% tax is going to be removed from alcohol purchases carried out in Dubai.
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