Over the past two years, the Ministry of Interior of the UAE has reviewed 521 money laundering cases and, in collaboration with international law enforcement agencies, apprehended 387 “wanted individuals.”

Furthermore, within the framework of these cases, more than 4 billion dirhams of illicit funds were confiscated. According to the press service of the Ministry of Interior, the UAE has successfully conducted parallel financial investigations to expose criminal networks and uncover the sources and beneficiaries of these funds.

The UAE cooperated with various international institutions such as Interpol, Police of the Persian Gulf, and others.

The Federal Authority for Identification, Citizenship, Customs, and Port Security (UAEICP) has announced changes regarding the ID cards of UAE residents.

From now on, changing the place of residence within the emirates will require a request for replacement of the UAE identity card.

Furthermore, updating information on the ID card for residents of the country has been simplified. Now you can update the information through the UAEICP website or application. Also you can modify details such as citizenship, passport, and other personal information online.

The Federal Authority for Identity and Citizenship, Customs, Ports, and Security in the UAE has introduced new rules for submitting documents to obtain a “Golden Visa”. According to the updated rules, any application for a Golden Visa that is deemed incomplete or ambiguous will be canceled within thirty days from the date of submission. As reported by the authority, multiple attempts to correct information will lead to rejection, and applicants will have up to three attempts to rectify any errors found in their applications.

Failure to resolve the issues within these attempts will result in application rejection, and in such cases, only the government fees for the visa issuance will be refunded. Expert Commission to Examine Documents Before issuing a “Golden Visa,” a government-appointed expert commission reviews the documents of individuals who have demonstrated their financial capability in various fields. More Options for Visa Application Applicants can apply for a “Golden Visa” through various channels, including the official website of the Authority, WhatsApp, or in-person at “Happiness Centers.”

Seamless Communication and Updates Throughout the application process, applicants will receive timely updates on the status of their applications and notifications on their registered mobile phone numbers. This will ensure transparency in the application process.

Updated Requirements for Different Types of Visas Requirements for Investor Visa Applicants for an investor visa must provide a certificate of establishment of an investment fund in the UAE. Additionally, applicants must invest a minimum of 2 million dirhams in the UAE or hold a valid commercial license issued by a commercial entity.

Proof of participation in establishing a company with a capital of no less than 2 million dirhams or investing this amount in the specified company is also required. Furthermore, a document from the federal tax authority confirming the annual payment of income tax of at least 2,500 dirhams will be considered. Criteria for Obtaining a Visa through Real Estate Investments To obtain a visa through real estate investments, applicants must provide registration documents issued by the Emirates authorities and prove ownership of property worth 2 million dirhams that is not mortgaged under any bank loans.

Documentation for Industrial Visa Applicants seeking an industrial visa must provide documents issued by an approved auditor. They must demonstrate ownership of an industry with worth at least five hundred thousand dirhams. Requirements for a Health Visa

Certificates of merits or services issued by approved medical centers or social services centers under the Ministry of Health will be considered valid for obtaining a medical visa. Recommendations from the UAE Council of Scientists will also be taken into account. Processing Visa in the Field of Arts and Culture Applicants for visas in arts and culture must obtain a recommendation letter from the Dubai Ministry of Culture. Criteria for Obtaining Executives Visa To apply for an executive visa, applicants must provide a salary certificate confirming a monthly income of no less than fifty thousand dirhams. Application for Sports Visa Certificates issued by the Sports Council must accompany applications for a sports visa.

Student Visa Requirements Students and talented individuals in the academic field must provide recognition certificates and relevant documents issued by local authorities to apply for a student visa.

The Ministry of Human Resources and Emiratisation has issued a directive outlining the details. Under the new regulations, companies with a workforce ranging from 20 to 49 employees must hire at least one UAE citizen by 2024, and an additional one by 2025. This requirement applies to private companies operating in 14 sectors of the economy, including real estate, education, construction, and healthcare. Previously, only companies with a minimum of 50 employees were obligated to employ UAE citizens. Any company within the 20-49 employee range that fails to hire at least one Emirati citizen in 2024 will be subject to a fine of AED 96,000. Furthermore, enterprises that do not have two UAE citizen employees by 2025 will face an increased fine of AED 108,000. Currently, companies with a workforce of 50 or more employees are already mandated to hire UAE citizens.

The per capita income in the UAE, based on purchasing power parity (PPP), reached up to 87,729 international dollars. This places the country at the seventh position globally in this regard. It is noted that the per capita income increased by 10,781 international dollars over the course of the year.

The international dollar is a virtual currency used for comparing the purchasing power of different countries. It is based on the US dollar but holds the same purchasing power as the local currency in each country. As for US dollars, the per capita income in the UAE also increased, from 43,460 dollars in 2021 to 48,950 dollars. Moreover, in 2022, this figure surpassed the pre-pandemic level of 2019.

According to the latest classification by the World Bank, countries are categorized into four groups based on per capita income using purchasing power parity (PPP):

• Low-income: less than $1,135
• Lower-middle-income: $1,136 to $4,465
• Upper-middle-income: $4,466 to $13,845
• High-income: above $13,845.

In the first quarter of 2023, 137 companies in the UAE were fined a total of 65.9 million dirhams for non-compliance with anti-money laundering (AML) legislation. According to the Ministry of Finance of the UAE, inspections were conducted on companies in the non-financial sector, such as real estate agents, traders of precious stones, and precious metals.

The inspections were carried out in accordance with Federal Decree-Law No. 20 of 2018 “On Combating Money Laundering, Financing of Terrorism, and Illegal Organizations.” In total, the Ministry of Economy identified 831 violations of AML legislation, including the fined companies that failed to establish internal customer due diligence procedures based on the “UAE terrorist list” published in accordance with Cabinet Resolution No. 74 of 2020.

The Ministry of Finance of the UAE has issued two new ministerial resolutions that specify the tax regime for legal entities operating in the UAE’s free economic zones. These resolutions are Resolution No. 55 of 2023 “On the determination of relevant income” and Resolution No. 139 of 2023 “On relevant activities and excluded types of activities.”

Who can benefit from the tax regime for Free Zones?

The corporate tax regime for free economic zones is available to companies registered within the free economic zone. Such a corporate tax regime is applicable only within the designated boundaries of the free economic zones. The profit tax regime for Free Zone enterprises is applicable only to income derived from activities carried out within or from the free economic zone.

What income is considered “qualifying” for the application of the tax regime in Free Zones (at a 0% tax rate)?

The resolution provides a definition of the term “qualifying income,” to which the special tax regime for companies in Free Zones (tax rate of 0%) will apply.

qualifying income includes:

• Income derived from transactions with other entities within the free economic zone.

• Income derived from domestic and international activities related to any of the “qualifying activities.”

What are “qualifying activities”?

“Qualifying activities” include:

• Production of goods or materials.

• Processing of goods or materials.

• Ownership of shares and other securities.

• Ownership, management, and operation of vessels.

• Reinsurance services.

• Fund management services subject to regulation by a competent authority in the UAE.

• Capital and investment management services subject to regulation by a competent authority in the UAE.

• Headquarter services for related parties.

• Financing services for related parties.

• Financing and leasing of aircraft, including engines and spare parts.

• Logistics services.

• Distribution from a designated zone that meets the required conditions.

• Any ancillary activities related to the aforementioned activities.

Excluded Activities

Income derived from engaging in “excluded activities” will not be considered as “qualifying income,” regardless of whether it is obtained by a person registered in a Free Zone or even if it is obtained as a result of “qualifying activities.”

Excluded activities include:

• Income from transactions with individuals.

• Income derived from certain regulated financial services.

• Income derived from intangible assets.

• Income derived from real estate, excluding transactions with entities in the Free Zone concerning commercial real estate located within the free economic zone.

A person registered in a Free Zone but receiving income from “excluded activities” or income that is not “qualifying” will not be able to benefit from the special tax regime for Free Zones, even if such person meets the minimum income threshold requirements (de minimis).

What should be the “minimum income” of a company to qualify for the Free Zone tax regime?

To meet the requirements, the income earned by a resident entity in a Free Zone must not exceed the lesser of two amounts: either 5% of the total income or AED 5,000,000.

Income related to the internal or overseas permanent establishment of a Free Zone company and income derived from real estate located within the free economic zone, which is not subject to the Free Zone tax regime, are not considered when determining the minimum income. Instead, the associated taxable income will be subject to the regular corporate tax regime of the UAE, at a rate of 9%.

If the minimum income requirements are not met or if a Free Zone resident entity fails to meet other conditions for the application of the special tax regime, such entity will not be able to benefit from the special tax regime in the Free Zone for a period of five (5) years. During this period, the entity registered in the Free Zone will be considered a regular taxpayer, subject to a tax rate of 9% on all income exceeding AED 375,000.

According to a study by the consulting company Henley and Partners, in 2022, 5200 dollar millionaires relocated to the UAE. Australia (+3800), Singapore (+2900), Switzerland (+2200), and the USA (+1500) were also among the top five most popular jurisdictions for the migration of affluent individuals.

As for the “outflow” of millionaires, the leaders in 2022 were China (-10800 millionaires) and Russia (-8500). Moreover, as noted by the company, Russia’s figures were approximately half of the projected numbers, as the departure of millionaires was hindered by sanctions – issues with opening accounts for Russian citizens and the scaling back of investment citizenship programs.

India (-7500 millionaires), Hong Kong (-2800 millionaires), Brazil (-1800 millionaires), and the United Kingdom (-1600) are also among the top five in terms of “outflow.”