Overstay visa families told to settle cases before seeking amnesty

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Thousands of people who have overstayed their visas are expected to come forward and change their legal status after the UAE Cabinet waived re-entry bans.

But those who have civil and criminal case filed against them remain hesitant to approach authorities.

Experts said residents who hope to legalise their status must first address any cases filed against them – specifically people who defaulted on bank loans, credit card payments or have absconding cases filed against them for not cancelling work visas.

“People don’t know where to start, so we explain that immigration overstay is the last case you have to address before you leave the country,” said Barney Almazar, head of legal aid at the Philippine consulate.

“Pending cases because of non-payment of bank dues must be negotiated with the bank, and once that is cleared will people get clearance to leave,” he said.

“If they have three police cases, they must clear all three. Any criminal case will have to be prioritised, and only when the trial is finished will they be allowed to exit and avail of this new immigration amnesty.”

Prior to the new laws, penalties and a re-entry ban were imposed on people without valid visas. These financial penalties have been lifted by authorities for overstay offenders who leave the country voluntarily, and a programme with details about how to alter visa status will soon be announced.

Amanjeet Singh, a financial consultant who works with the Indian consulate to help workers, said there were several cases of children stranded without access to education and health care after their parents defaulted on credit cards.

As per the new rules, lawyers and welfare workers said they believed children could be sent to their home country if relatives were ready to care for them. Many parents hope to resolve their illegal status and remain in the country.

“This visa waiver is the only chance for their children to go back,” Mr Singh said.

“We help them talk to banks to lower the amount that needs to be paid back. Even if they miss a payment of one-two months, the interest builds up and it is not possible for them to pay. Naturally banks want their money back, but we need to find middle ground.”

Some residents, keen to take on new jobs, have fallen prey to unscrupulous money lenders and believed fake assurances that they would clear their cases for a fee.

“They resort to these people because they are afraid to go to jail. Then they are duped and lose more money. Their passport may be held by a loan shark [illegal money lender]. But that is not the government’s problem, so all this needs to be resolved first,” said Mr Almazar, who advises people calling to ask how to change their status.

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New one-year residencies for widows and divorced women explained

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Residents with absconding cases filed by previous employers must contact their former sponsor and appeal for withdrawal of the files.

India and the Philippines are among five countries with the highest number of expatriates living and working in the UAE and their missions in the Emirates are among the busiest in the region.

The Philippine consulate has helped repatriate 642 people and 33 children January and April, and disbursed $250,000 (Dh918,300) as funding for assistance to their citizens that includes plane tickets home.

As many as 1,300 Filipino nationals and 23 children were repatriated last year and 340 citizens in 2016.

The Indian consulate has provided tickets to 157 Indians and 13 children and paid overstay visa fines in nine cases this year.

The consulate repatriated 403 stranded Indians and 22 children last year. In 2016, it helped 225 stranded Indians and 23 children.

Immigration and overstay fines were paid for 54 Indians last year and for 19 Indians in 2016.

The Indian Community Welfare Fund offers short-term food and accommodation allowances, tickets at government cost for repatriation, initial legal assistance and emergency medical help.

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

COMPANY PROFILE

Name: Mamo

Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua

Based: Dubai, UAE

Number of employees: 28

Sector: Financial services

Investment: $9.5m

Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors.