Protecting rights of domestic workers is a shared concern


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The introduction of the standard work contract for UAE domestic staff marked an appropriate step towards protecting the rights of both workers and their employers. However, it doesn’t set a minimum monthly wage, leaving it to both parties to agree on this matter, rather than having the contract signed off by the embassy of the domestic worker.

This has not met with universal approval. As The National reported yesterday, the Philippines government has warned that it will not process contracts of Filipinos wishing to become household workers in the UAE if the Ministry of Labour continued to allow recruitment agencies to proceed without the embassy's approval.

Rosalinda Baldoz, the Philippine labour secretary, told the paper that she is concerned that household workers travelling to the UAE are at risk of human trafficking in the absence of official verification of documents.

While these concerns are legitimate, they overlook the fact that the UAE continues to work to protect domestic workers from abuse. The standard contract affords legal protection to all domestic staff in the event of a dispute arising.

Insisting on the approval of contracts is only likely to hurt those who the Philippines government are seeking to protect, namely those wanting to move to this country to work, earn money and remit their earnings back home. Separately, Ethiopian officials have also demanded a minimum wage of Dh1,200 for its citizens, which led to the suspension of issuing work visas for Ethiopian domestic staff. This does not help anyone.

The UAE welcomes any effort from foreign embassies to protect their citizens who are employed in the country. Indeed, Sheikh Abdullah bin Zayed, the Foreign Minister, said there should be no "constraints for any country on protecting their nationals here", during a debate with the FNC last year.

Of course, that statement works hand in hand with the terms, conditions and labour rights enshrined in the standard contract, which was written to protect migrant workers. It is up to the government of the maid’s home country to trust in that legislation and allow its citizens the freedom and the choice to take up employment overseas.

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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