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Policy & Legal Updates
Source: Gulf News

UAE Outlines Phased Enforcement for Late Wages Under Wage Protection System

The UAE Ministry of Human Resources and Emiratisation has announced an updated phased enforcement procedure for employers who delay salary payments under the Wage Protection System. Electronic monitoring will flag delays and issue automatic alerts before formal sanctions take effect. The system currently processes more than Dh37 billion in private sector wages each month.

Policy & Legal Updates
Source: Federal Tax Authority

UAE Federal Tax Authority Issues Guide on Free Zones and Designated Zones

The UAE Federal Tax Authority has published General Procedure guide TAXP010 addressing tax treatments for Free Zones and Designated Zones. The guide clarifies operational and legal criteria, including fenced perimeters and customs supervision, required for Designated Zone status under VAT and Corporate Tax laws. It is intended to assist businesses in identifying qualifying income and navigating transactions with the UAE mainland.

Policy & Legal Updates
Source: Federal Tax Authority

UAE Clarifies Reverse Charge Mechanism on Local Metal Scrap Trading

The UAE Federal Tax Authority issued Public Clarification VATP047 regarding the reverse charge mechanism for domestic metal scrap transactions. Under the clarification, the VAT accounting obligation shifts from the supplier to the VAT-registered buyer. The guidance outlines mandatory documentation, supplier declarations, and verification rules for the industrial sector.

China–UAE News
Source: UAE-China Chamber of Commerce

Chinese Firms Expand UAE Footprint Across Finance, Logistics, and Autonomous Driving Sectors

China Securities has secured regulatory authorization to operate in the Dubai International Financial Centre, while JINGDONG Property signed a deal to build a 150,000-square-metre smart logistics facility in Abu Dhabi. Chinese outbound direct investment into the UAE rose to $2.6 billion, pushing cumulative investment stock to $12.47 billion as bilateral non-oil trade crossed $100 billion.

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