Motei Admin

Key Changes in UAE Economic Substance Regulations: Essential Updates for Businesses

Historic Overview – Economic Substance Regulations (ESR) These regulations aimed to ensure that companies conducting certain “Relevant Activities” within the UAE maintain substantial economic activity. Compliance required companies to meet three core tests: the Core Income Generating Activity (CIGA) test, the Adequate Local Substance test, and the Directed and Managed test. Key Amendments to the […]

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Recent Amendments to the UAE VAT Executive Regulation

On 2 October 2024 the Federal Tax Authority (“FTA”) published the amended version of the Executive Regulation of Federal Decree-Law No. 8 of 2017 on Value Added Tax (“Executive Regulation”). The amendments are implemented following Cabinet Decision No. (100) of 2024 and are effective from 15 November 2024 and bring new VAT exemptions aimed at

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The Legal Consequences of Subleasing and Sharing a Property Without the Landlord’s Consent

Historic Overview Subletting is a common practice in the real estate market, especially where landlords entrust leasing agents to manage properties. These agents, acting as original tenants, may sublease the property to third parties. However, with rising rental costs, many tenants in UAE resort to sharing accommodation to split expenses, often without the landlord’s consent.

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Corporate Tax Filing Deadline Postponed for Short Tax Periods Ending on or before 29th February 2024

This extension applies to companies incorporated, established, or recognized after 1st June 2023, which experienced a shortened first tax period. The postponement offers businesses more time to meet their obligations, easing administrative pressures and helping avoid potential penalties. The FTA encourages all businesses to take advantage of this extended deadline to ensure timely and accurate

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Federal Decree-Law No. 9 of year 2024: Amendments to the Federal Decree-Law on Labor Relations

Introduction This legislative adjustment is designed to refine the regulatory framework governing employment practices, ensuring a more balanced approach to the rights and obligations of all parties involved. Key Amendments Enhanced Penalties for Non-Compliance: The revised Decree-Law introduces significant financial penalties ranging from AED 100,000 to AED 1 million for several critical infractions, including: Employing

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Validity of the Legal Eviction Notice Issued by the Previous Owner Against the Tenant in Case of Sale of the Property to a New Owner

Subsequently, the ownership was transferred to a second owner, who later sold the property to our client. The transfer of ownership included the eviction notice, thus enabling our client to obtain the villa vacant and free of occupants by 1st August 2024. However, upon reaching out to the tenant to confirm the eviction as per

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Understanding Prenuptial Agreements for Foreign Residents in the UAE: A Guide to the Current Legal Framework

This article will explore the current legal framework surrounding prenuptial agreements in the UAE, particularly under Federal Decree-Law No. (41) of 2022 and relevant Emirati laws. Legal Framework guiding the Prenuptial Agreements in the UAE 1. Federal Decree-Law No. (41) of 2022 Federal Decree-Law No. (41) of 2022 governs civil personal status and family matters

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The Rental Disputes Centre (RDC) ruled that tenant is liable for any damage caused by their negligence while the property is in their possession

FACTS Unfortunately, three months into the tenancy, the tenant notified our client of an unexpected water leak occurring in the middle of the night, which caused a flood and significant, irreparable damage to the wooden floor. The tenant argued that their insurance policy does not cover floods, and that the incident was beyond their control,

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Key Rules for Determining Taxable Income in the UAE

Starting Point: Net Accounting Profit or Loss The process for determining taxable income begins with the net accounting profit or loss reported by the taxable person. This figure provides the baseline for further adjustments required by the UAE CT Law. Key Adjustments for Accurate Taxable Income Calculation Exempt Income: Identify and exclude income that is

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