Dubai Introduces New Tax Regulation for Foreign Banks | Kanebridge News
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Dubai Introduces New Tax Regulation for Foreign Banks

Dubai has unveiled a new tax measure targeting foreign banks within the Emirate.

Fri, Mar 8, 2024 6:07pmGrey Clock 2 min

Sheikh Mohammed bin Rashid Al Maktoum, the Ruler of Dubai, Vice President, and Prime Minister of the UAE, endorsed Law No. (1) of 2024, focusing on the taxation of foreign banks. This regulation includes all foreign banks active in Dubai, including those within special development zones and free zones. However, it exempts foreign banks that have obtained a license to operate within the Dubai International Financial Centre (DIFC).

Tax Implementation Details

Under the new regulation, foreign banks are now subjected to a tax rate of 20% on their annual taxable earnings. However, if these institutions have already complied with the Federal Law No. (47) of 2022, regarding the Taxation of Corporations and Businesses, including its amendments, such corporate tax payments will be deducted from their total tax due.

The law elaborates on the criteria for determining taxable income and outlines the procedures for tax filings, payments, audits, voluntary disclosures, and the related duties and processes. It also protects the rights of foreign bank branches licensed by the Central Bank of the UAE and outlines the procedure for challenging tax audit findings through Dubai’s Department of Finance, adhering to the stipulated guidelines within the law.

Violations of this law will be met with sanctions and fines as determined by the Chairman of The Executive Council of Dubai, with fines not surpassing AED500,000 ($136,100). In cases of recurrent violations within a two-year span, fines may be doubled, reaching up to AED1m ($272,200). The implementation of this law commences from the tax year succeeding its enactment.

The Director-General of the Department of Finance is assigned the responsibility to make necessary decisions to facilitate the law’s application, to be officially published in the Official Gazette. This law reverses Regulation No. (2) of 1996 and any conflicting regulations, although existing decisions and memos under the 1996 regulation will stay effective until new ones are issued. Effective from its publication date in the Official Gazette, Law No. (1) of 2024 targets the taxation of foreign banks within Dubai.



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Preparatory Work for UAE to Oman Hafeet Rail Project Commences at Full Speed

Preparations have begun on the transformative UAE to Oman Hafeet Rail network, revealing significant construction details during a site visit.

Thu, May 16, 2024 3 min

The $3bn Hafeet Rail project between the UAE and Oman will feature 60 bridges and a 2.5km tunnel, making it an “architectural and engineering marvel,” according to CEO Ahmed Al Musawa Al Hashemi.

Hafeet Rail has announced that preparatory work is moving full speed ahead for constructing the transformative railway link between the UAE and Oman. This announcement was made during a site visit attended by key officials, members of the Asyad and Hafeet Rail executive management teams, project contractors, and consultants.

Key Highlights

During the visit, attendees were introduced to the main components of the project, including passenger, repair, and shipping stations, as well as major bridges and tunnel sites.

The Hafeet Rail project is set to play a very important role in enhancing local and regional trade, unlocking new opportunities in the infrastructure, transportation, and logistics sectors, and fostering economic diversification. It will also strengthen bilateral relations between the UAE and Oman.

The project will involve constructing 60 bridges, some reaching heights of up to 34 meters, and tunnels extending 2.5 kilometres. The Hafeet Rail team showcased the latest rail technologies and innovative engineering and architectural solutions designed to navigate the challenging geographical terrain and weather conditions while maintaining high standards of efficiency and safety.

The rail network will boost various industrial sectors and economic activities and significantly impact the tourism industry by facilitating easier and faster travel between the two countries.

Ahmed Al Bulushi, Asyad Group Chief Executive Asset, noted that the project’s rapid progress reflects the commitment of the UAE and Oman to developing and realizing the project’s multifaceted benefits.

Investment and Future Impact

Al Bulushi added that investments in developing local capabilities and expertise in rail-related disciplines over recent years have enabled the project to reach the implementation phase successfully under the leadership of highly efficient and professional national talent.

Hafeet Rail’s CEO Ahmed Al Musawa Al Hashemi emphasized, “The commencement of preparatory works for construction is a testament to the robust synergy between all parties involved in both nations, achieving this milestone in record time. We are confidently laying down the right tracks thanks to the shareholders of Hafeet Rail and the expertise of local companies in Oman and the UAE, alongside international partners.”

During the site visit, the visitors explored some of the key preparatory sites, including Wadi Al Jizi, where a 700-meter-long bridge towering 34 meters will be constructed. This ambitious project is envisioned as an architectural and engineering marvel in a complex geographical landscape.

Future phases will require more collaboration, with a continued focus on quality, safety, and environmental considerations in line with the international industry best practices.

The Hafeet Rail project represents the first-of-its-kind railway network linking two Gulf nations, marking a significant shift in regional goods transportation. This efficient and reliable transportation option will reduce dependence on slower and less sustainable road transport.

Hafeet Rail promises a 40% reduction in shipping costs and a 50% in transit times compared to traditional land transportation methods, as it will be connecting five major ports and several industrial and free zones in both countries.

This shift will reduce reliance on road transport by cars and trucks and promote more sustainable shipping practices. The establishment of the railway network will also create significant opportunities for SMEs in construction, engineering, and logistics support, acting as a catalyst for economic growth and innovation within the domestic economy.

By linking major ports, the Hafeet Rail project will enable local SMEs to import, export, and distribute their products more effectively, enhancing their market reach and global competitiveness.

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