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Home Finance UAE taxes, traffic laws and charges coming into effect from January 2025

UAE taxes, traffic laws and charges coming into effect from January 2025

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As the world welcomes the new year, UAE residents should take note of the key rules and regulations that are now in effect. From allowing 17-year-olds to obtain driving licenses to introducing mandatory food labelling in Abu Dhabi, these updates are set to impact daily life for many residents significantly.

From laws to new charges, here’s an overview of the most anticipated changes coming your way this year.

Federal traffic law

A new federal decree law on traffic regulations will come into effect, lowering the minimum age limit for drivers by one year to 17 years old.

In addition to this, the country will prohibit driving vehicles that make a lot of noise, and will not allow the use of car horns within cities except to prevent danger or accidents.

The new regulations also prevent pedestrians from crossing roads with speed limits exceeding 80kmph. Authorities explained that those who do not comply will bear any civil or criminal liability.

They have also warned of “deterrent penalties” for serious violations that may cause fatal accidents. These include driving under the influence of alcohol or any narcotic substance; hit-and-run cases; jaywalking; or driving in a valley in time of flooding.

Transporting hazardous materials or unusual loads will require a permit from the relevant authority, the new law said.

Paid parking in Al Dhaid City

The Sharjah Municipality will implement paid parking in Al Dhaid City, effective January 1, 2025. Under the new rule, parking fees will be effective from Saturday to Thursday, between 8am and 10pm.

However, parking will be free on Fridays, except in certain areas where fees will be applied throughout the week, including weekends and official holidays. The decision to implement paid parking is part of the municipality’s ongoing efforts to improve urban infrastructure and create more efficient use of public spaces.

15% domestic minimum top-up tax

The UAE has implemented a new tax on multinational companies operating in the Emirates. Large multinational enterprises (MNEs) are now required to pay a minimum effective tax rate of 15 per cent on their profits.

The Ministry of Finance announced that the Domestic Minimum Top-up Tax (DMTT) is effective for financial years starting on or after January 1, 2025, aiming to establish a fair and transparent tax system in line with global standards.

Nutrition grading system

Starting June 1, mandatory nutrition grades must be placed on five food items as part of a new labelling system launched by quality control and health officials in Abu Dhabi.

Products found on supermarket shelves without Nutri-Mark, which grades the nutritional content of a food item, will be withdrawn and concerned parties will be fined. This will also apply to items that are displaying a higher grading than they should.

Nutri-Mark grades the nutritious value of a certain item from A to E, with A being the most healthy. The first phase of the new scheme applies to baked goods, oils, dairy, children’s food and beverages.

The new system aims to tackle obesity by providing consumers with clear and easy-to-understand information about the nutritional values of products, said Dr Ahmed Al Khazraji, Acting Director-General of Abu Dhabi Public Health Centre.

More food items will be included under Nutri-Mark after the first phase.

Mandatory women representation

A new decision by the UAE Ministry of Economy stipulates that starting January 1, women must be represented on private joint-stock companies’ boards of directors.

At least one seat must be allocated for women after the end of the current board’s term, according to the new decision.

The decision aims to expand the presence and representation of women on the boards of directors of private joint-stock companies.

Mandatory pre-marital genetic testing

Genetic testing will be a mandatory part of premarital screenings for all Emirati citizens planning to get married starting January 1, according to the Abu Dhabi Department of Health.

“In 2019, the UAE Genome Programme was launched, and in 2021, the UAE Genome Council was established under the leadership of Sheikh Khalid bin Mohammed bin Zayed….. genetic testing will be an essential part of the premarital examination programme for all citizens intending to marry across the country, starting in January 2025,” said Dr Noura Al Ghaithi, Undersecretary of the Department of Health – Abu Dhabi.

While premarital medical examination was mandatory for couples, both citizens and expats, ahead of marriage, genetic testing was optional.

Earlier, a top official told Khaleej Times that genetic testing detects over 570 genetic mutations that can cause hereditary diseases such as cardiomyopathy, genetic epilepsy, spinal muscular atrophy, hearing loss, cystic fibrosis, and “other severe and chronic diseases that are difficult to treat.”

Emiratisation targets

Starting in 2025, private sector companies with a workforce of 20 to 49 workers will be required to hire at least two Emirati citizens. Previously, this mandate applied only to companies with 50 or more employees, said the Ministry of Human Resources and Emiratisation (Mohre).

Non-compliant establishments of this size will face financial contributions of Dh96,000 for not achieving this year’s target, which will be collected starting January.

Administrative fines on private sector companies that do not meet their 2025 Emiratisation targets will amount to Dh108,000, to be collected as of January 2026.

Participating in false Emiratisation practices will also result in administrative fines ranging from Dh20,000 to Dh100,000 for each instance, depending on the number of offences.

 

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