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Policy & Legal Updates

Understand the policies, laws and regulations shaping business across China and the UAE.

Business registration · Investment · Taxation · Customs · Trade · Financial regulation · Employment · Visas · Free-zone policies. Every update identifies the issuing authority, jurisdiction, publication date, effective date and official source.

Policy & Legal Updates
Source: Federal Tax Authority

UAE Issues Clarification on Mandatory Verification for VAT Input Tax Deductions

The UAE Federal Tax Authority issued a public clarification establishing mandatory verification procedures for input VAT deductions. Taxable entities must review supplier status, operational substance, commercial rationale, and payment structures before claiming recovery. Failing to maintain documented due diligence enables the authority to disallow deductions.

  • Federal Tax Authority
  • United Arab Emirates
  • Final rule
Industry News
Source: صوت الإمارات

US House Speaker Signals Growing Consensus on Tightening Chip Exports to China

US House Speaker Mike Johnson stated that consensus is growing within Congress to tighten restrictions on advanced semiconductor exports to China. The statements follow the resignation of Nvidia CEO Jensen Huang amid an investigation into alleged technology leakage to Beijing. Johnson noted the issue has become a top legislative priority as the US Department of Justice continues its inquiries.

  • US House of Representatives
  • Draft / consultation
Policy & Legal Updates
Source: Gulf Business

UAE Issues Federal Traffic Regulations Covering Vehicle Noise, Child Restraints, and Driving Limits

The UAE Cabinet has issued executive regulations under Federal Decree-Law No. 14 of 2024, coming into force on January 1, 2027. The measures introduce vehicle impoundment and fines for vehicles exceeding national noise thresholds while exempting unmodified factory exhaust systems. The rules also establish a nine-hour driving limit in any 24-hour window, reinforce child passenger safety requirements, and cap individual resident vehicle registrations at five.

  • UAE Cabinet
  • United Arab Emirates
  • Effective January 1, 2027
  • Final rule
Policy & Legal Updates
Source: Arabian Business

Dubai Issues Law Regulating Municipality Mandate, Urban Planning, and Construction Activities

Sheikh Mohammed bin Rashid Al Maktoum has issued Law No. (18) of 2026 modernising the legislative framework of Dubai Municipality and replacing its founding order from 1961. The legislation defines the municipality's governance structure, urban planning mandate, and jurisdiction across the emirate, including special development zones and free zones. It also authorises Dubai Municipality to outsource functions and powers to public or private entities under formal agreements.

  • Ruler of Dubai
  • Dubai, United Arab Emirates
  • Final rule

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