UAE public holidays: Islamic New Year to fall on weekend

Islamic New Year will fall on a weekend this year, with a public holiday for those in the private sector working on Saturday, July 30.

The Ministry of Human Resources and Emiratisation announced the holiday, which marks the start of year 1444.

Although many people would be off for the weekend, the hundreds of thousands of people working in the UAE's retail and hospitality industries, among others, will benefit.

Hijri, or New Year, marks the day on which the Prophet Mohammed migrated from Makkah to Madinah.

The Islamic calendar is lunar, which is why it does not correspond with the Gregorian calendar.

Muslims do not mark New Year with public celebrations or events.

In the past, hotels and bars that would serve non-Muslims were asked to refrain from providing alcohol and hosting live entertainment, although these requirements have become less common in recent years.

When is the next public holiday in the UAE?

The next public holiday after New Year is two months away.

The Prophet Mohammed’s birthday is marked on October 8, but because it falls on a Saturday a long weekend is unlikely.

How many UAE public holidays are there left in 2022?

In December, Commemoration Day and National Day may be the next long weekend.

Commemoration Day will be marked on November 30 and the National Day celebrated on December 2.

The official days off for these dates have been listed as Thursday, December 1 until Sunday, December 4.

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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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