I have finished serving my 30-day notice period with my employer, but the company is asking me to wait a further 18 days to cancel my visa.
However, I have another job offer and my new employer is not willing to wait longer for me to start work and apply for my employment visa. What can I do? IG, Abu Dhabi
When an employee has resigned and completed their notice period, it is the responsibility of the employer to cancel the work permit and residency visa.
Unless there is a prior agreement for this to be extended, this should happen on the final day of the notice period and all money due to the worker should also be paid in full. This is standard procedure.
The cancellation of a work visa should only take one or two working days. If an employer fails to cancel a visa, the employee should register a case with the Ministry of Human Resources and Emiratisation. This can be by telephone on 800 60 or through its website, which has a helpful chat function.
The ministry will contact the employer to tell them to take immediate action. In most cases, this will be sufficient to resolve the problem.
The employer is acting contrary to government guidance, as well as inconveniencing IG, which is unprofessional and unfair.
I left the UAE and now live in the UK, where I have set up a small business. I have clients in the UAE and will be invoicing them for my services, but am confused about how this works for value-added tax.
I plan to register for VAT in the UK but how should I invoice my UAE clients when it comes to VAT? Should I do this at UK rates or UAE rates? SB, UK
The cancellation of a work visa should only take one or two working days
Keren Bobker,
senior partner at Holborn Assets
VAT is a specialist subject, particularly when different countries are concerned, so I sought advice from Gemma Nye, manager of Dubai-based Go Figure Accountancy.
Ms Nye said: “Non-residents who make taxable supplies [a term for supplying goods and services on which VAT can be charged] in the UAE will be required to register for VAT unless there is any other UAE resident person who is responsible for accounting for VAT on their behalf. This exclusion may apply where the UAE client is VAT-registered and, therefore, required to account for VAT under a reverse-charge mechanism in respect of a purchase from a non-resident.”
A reverse-charge mechanism is one where the end-customer pays the tax directly to the government. The supplier does not have to pay VAT on import items or services, so the obligation of reporting a VAT transaction is shifted from the seller to the recipient.
“If a person is not registered for VAT in the UAE, they must not charge UAE VAT at 5 per cent when invoicing clients. To charge VAT, a person or entity must have a tax registration number from the Federal Tax Authority,” Ms Nye said.
“In relation to charging UK VAT, the application of UK VAT is determined on the ‘place of supply’. If the supply is in the UK, it is subject to UK VAT. If the supply is in another country, it is said to be ‘outside the scope’ of UK VAT.”
The situation can be different depending on whether the business is supplying a consumer, meaning a person or another business.
“The UK VAT Notice 741A section 6.3 says that the place of supply for a business-to-business supply is where the customer belongs. Section 6.2 states the general rule for business-to-consumer supplies of services is that the place of supply is where the supplier belongs, irrespective of the location of their customer,” Ms Nye said.
“It is important to read the full UK VAT notice outlining how you determine ‘place of supply’ as there are some exemptions dependent on your business activity.”
Cross-border taxation can be complex, so it is always best to obtain professional advice based on a specific situation.
I recently started a new job and my employer has applied for my visa and work permit. Before I started, it was agreed that I would be able to take unpaid leave after a few weeks for something that was booked some time ago.
However, I am concerned whether I will receive my passport back in time. How long does it usually take for a visa application to be completed? CC, Abu Dhabi
Once the application has been submitted to the ministry and the candidate takes the medical test, the process of issuing the visa should not take long.
In most cases, the time frame is seven to 10 working days, although a good public relations officer can usually fast-track an urgent application in a few days.
Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with more than 25 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE
The advice provided in our columns does not constitute legal advice and is provided for information only
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Key recommendations
- Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
- Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
- Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
- More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.
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9.25pm: UAE 2000 Guineas Conditions $100,000 1,400m (D).
Winner: El Chapo, Luke Morris, Fawzi Nass.
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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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THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
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Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
Pox that threatens the Middle East's native species
Camelpox
Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.
Falconpox
Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.
Houbarapox
Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.
