• The updated law decriminalises consensual relationships outside of marriage and provides that any child conceived as a result of the relationship is acknowledged and will be cared for. Getty Images
    The updated law decriminalises consensual relationships outside of marriage and provides that any child conceived as a result of the relationship is acknowledged and will be cared for. Getty Images
  • New criminal penalties have been brought in for public disorder offences. The new law also prohibits the consumption of alcohol in a public place or in unlicensed locations. Jeffrey E Biteng / The National
    New criminal penalties have been brought in for public disorder offences. The new law also prohibits the consumption of alcohol in a public place or in unlicensed locations. Jeffrey E Biteng / The National
  • Investors and entrepreneurs will be allowed to establish and fully own onshore companies in almost all sectors in the UAE, with the exception of activities considered to be ‘strategic’. Alamy
    Investors and entrepreneurs will be allowed to establish and fully own onshore companies in almost all sectors in the UAE, with the exception of activities considered to be ‘strategic’. Alamy
  • Legislation covering the spreading of rumours and fake news, electronic fraud and protecting personal data has also been put into place. Reuters
    Legislation covering the spreading of rumours and fake news, electronic fraud and protecting personal data has also been put into place. Reuters
  • The overhauled Federal Crime and Punishment Law strengthens the protection of women and domestic workers. Silvia Razgova / The National
    The overhauled Federal Crime and Punishment Law strengthens the protection of women and domestic workers. Silvia Razgova / The National
  • This legislation has also been strengthened to offer greater protection to people working within creative sectors. Khushnum Bhandari / The National
    This legislation has also been strengthened to offer greater protection to people working within creative sectors. Khushnum Bhandari / The National

UAE legal reforms: What the law says about children born outside marriage


Patrick Ryan
  • English
  • Arabic

A new criminal code is among the most significant changes in the UAE's legal reforms announced on Saturday.

It decriminalises consensual relationships outside marriage and stipulates that any child conceived as a result of such a partnership will be acknowledged and cared for, state news agency Wam reported.

Any couple who have a child outside marriage “will be required to marry or singly or jointly acknowledge the child and provide identification papers and travel documents in accordance with the laws of the country of which either is a national, considering the applicable laws of that nation”, Wam reported.

“Failing this, a criminal case would introduce a prison term of two years for both correspondents.”

The reforms, which come into effect on January 2, include more than 40 new laws that have far-reaching implications for life in the UAE.

Other amendments include greater protection for women and domestic workers, as well as public security and safety being strengthened.

Rapists face life imprisonment, which could be extended to a death sentence if the victim is under the age of 18 or in a condition in which they are unable to resist.

A prison term of no less than 10 years awaits anyone convicted of sexual assault on someone under the age of 18, disabled or in a position that they cannot offer resistance.

The law also applies to indecent assault on adults of both genders, which will result in jail sentences or fines of no less than Dh10,000.

If the threat or use of force is employed by the perpetrator in the course of their crime, they can be sentenced to anything between five and 20 years.

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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

The years Ramadan fell in May

1987

1954

1921

1888

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

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Updated: November 28, 2021, 3:45 PM