تخطي إلى المحتوى

Excise Tax, DIFC Wills Online Registration, Domestic Workers Law, & more.

Excise Tax, DIFC Wills Online Registration, Domestic Workers Law, & more.

Legal Hour

عين دبي 103.8

02 أكتوبر 2017

المضيف
There’s just so much more to hear. Download our podcasts at DubaiI1038.com.

المضيف 
Good afternoon and welcome to Drive Live Talks Legal. Starting a bit earlier today, we’ll dive into legal issues for the next 40 minutes. If you have a question, text us at 4001 or use the free messenger app. Joining us today is our legal expert, علي الأسد from Yamalova & Plewka. Ali, thanks for being here.

علي الأسد
Thank you for having me. Always a pleasure to join the discussion.

المضيف
Let’s start with a topic that’s stirred quite a bit of conversation—excise tax. Ali, can you give us an overview of what’s been introduced and what people need to know?

علي الأسد
Absolutely. As of October 1, 2017, the UAE has introduced an excise tax that applies to certain products. Fizzy drinks are taxed at 50%, while energy drinks and tobacco products are taxed at 100%. This is part of a broader effort to discourage the consumption of unhealthy products and generate additional government revenue.

المضيف
Interesting. But some people seem to be confused about the specifics. For instance, there’s been talk about whether sparkling water falls under the same category as cola. What’s the clarification on that?

علي الأسد
Good question. Sparkling water without added flavors is exempt from the excise tax. However, if it’s flavored or contains sugar, it’s treated as a soft drink and taxed accordingly. Unfortunately, there’s been some misapplication of the tax by certain retailers, but the Federal Tax Authority has provided clear guidelines.

المضيف
That’s helpful. What about situations where shops are selling pre-tax stock at higher prices? Is there a regulation for that?

علي الأسد
Yes, technically, shops should sell pre-tax stock at the old prices. However, monitoring and enforcement can be challenging. Suppliers and retailers are expected to apply the tax based on when the goods were purchased, not when they’re sold.

المضيف
Thanks for breaking that down, Ali. If you have questions about excise tax or any other legal matters, text us at 4001 or message us via the free app. Stay tuned—more legal insights with Ali Al-Assad from Yamalova & Plewka after this break.

المضيف
Welcome back to Drive Live Talks Legal. Joining us is علي الأسد from Yamalova & Plewka. We were just discussing excise tax, but now let’s shift gears to wills and probate. Ali, there’s news that you can now register a will online in Dubai. Can you walk us through this?

علي الأسد
Yes, this is a significant development. The DIFC Wills and Probate Registry has introduced an online service allowing international investors to register their wills remotely. This service is available for properties and free-zone company shares located in Dubai and Ras Al Khaimah.

المضيف
Interesting. So, does this mean investors living abroad no longer need to come to Dubai to register their wills?

علي الأسد
Exactly. They can now complete the process through video conferencing with a DIFC officer. However, it’s important to note that this service only applies to specific assets—namely real estate and shares in free-zone companies. If you wish to include movable assets or guardianship provisions for minors, you would still need to complete the registration in person.

المضيف
What about signatures and witnesses? How does that work when registering a will remotely?

علي الأسد
That’s a great question. The DIFC has implemented a secure video conferencing system where applicants can sign their wills electronically under the supervision of a registry officer. This ensures the document is legally binding without the need for physical witnesses.

المضيف
This sounds like a game-changer for international investors. Is there a limit to the number of properties or assets that can be included in these wills?

علي الأسد
Yes, there are limits. A single-property will costs AED 7,500 to register, and the fees increase based on the number of properties or companies included. However, this service is designed to be efficient and cost-effective compared to traditional methods.

المضيف
And for those who move to Dubai later—does the will still stand?

علي الأسد
Yes, the will remains valid. Residency status doesn’t affect the legality of the will as long as it was drafted and registered properly.

المضيف
Good to know. If you have questions about wills, probate, or anything else, send them in now. Ali Al-Assad from Yamalova & Plewka will continue answering your legal queries after this. Stay tuned!

المضيف
Thanks for staying with us on Drive Live Talks Legal. We’re here with علي الأسد from Yamalova & Plewka, tackling all your legal queries. Ali, we’ve covered excise tax and wills so far, but we’ve just had a question about the new law for domestic workers. Could you explain what’s changed?

علي الأسد
Certainly. The UAE recently approved a law setting clearer working conditions for domestic workers. This includes a regular weekly day off, 30 days of paid annual leave, and a minimum of 12 hours of daily rest, with at least 8 of those being consecutive. Importantly, domestic workers now also have the right to retain their personal documents, such as passports, which employers are not allowed to withhold.

المضيف
That’s a significant change. Does this new law apply to all domestic workers?

علي الأسد
Yes, it applies to household workers, including nannies, cooks, private trainers, nurses, drivers, gardeners, and others providing personal services. However, it doesn’t cover those employed by companies. For example, a cleaner hired through a cleaning company would not be covered under this law because they are considered an employee of the company, not a domestic worker.

المضيف
Right, so this is specifically for workers employed by families or individuals. Another question—what happens if an employer refuses to return a worker’s passport, despite this law?

علي الأسد
If an employer withholds a passport, the worker can file a request for its return through the Urgent Matters Judge at the local court. This process is relatively quick, and within 48 hours, a court order can be issued demanding the employer return the passport. If the employer refuses, the worker can involve authorities to enforce the order.

المضيف
That’s reassuring to hear. But what if an employer retaliates by firing the worker for requesting their passport back?

علي الأسد
If the employer fires the worker for such a reason, it would be considered arbitrary dismissal. In this case, the worker would be entitled to compensation under UAE labor law—typically up to three months’ full salary.

المضيف
Good to know. Let’s take another listener question. This one asks: “I resigned from my job due to six months of unpaid salary. I signed an agreement to be paid in installments, but now the employer has stopped payments. What can I do?”

علي الأسد
If you’ve resigned and signed a settlement agreement, this shifts the relationship from employer-employee to a civil agreement. You would need to file a civil case to claim the remaining payments. If you’re still working for the company, however, you can file a labor case instead.

المضيف
Does the process differ significantly between a labor case and a civil case?

علي الأسد
Yes. Labor cases under AED 100,000 have no filing fees, making them more accessible. Civil cases, on the other hand, involve standard filing fees—typically 5% of the claim amount, capped at AED 20,000.

المضيف
That’s helpful information. Another listener asks, “Does the new domestic worker law apply if the worker is hired through a company but works in a private home?”

علي الأسد
No, it doesn’t. In that case, the worker is employed by the company, not the individual, and their employment is governed by standard labor law rather than the domestic worker law.

المضيف
Thanks for clarifying that. Before we wrap up, Ali, do you have any final advice for our listeners navigating these new laws?

علي الأسد
My main advice is to stay informed and proactive. Whether you’re dealing with employment contracts, property transactions, or any legal matter, understanding your rights and responsibilities is crucial. And when in doubt, consult with a legal professional to ensure you’re on the right track.

المضيف
Great advice. Ali Al-Assad from Yamalova & Plewka, thank you so much for joining us today and shedding light on these important topics.

علي الأسد
Thank you. Always a pleasure to be here.

arAR

اشترك للحصول على آخر الأخبار