UAE Payroll Compliance Map

Email: dxb4ww@evershinecpa.com
The Engaging Manager from Headquarter
Ms. Anna Wang, Speak German, English and Chinese.
skype: burlinna

WWT – UAE Payroll Income Tax Deduction

WWT-AE-01 WWT Tax Entity

Is the UAE salary income tax levied in national or local? Or both national and local?
Are the national and local personal income tax that levied separately? Or levied together?
What is the standard withholding tax rate?

Evershine RD:

There is no federal personal income tax in the UAE.

WWT-AE-02 Registration

The UAE salary income tax collection is under the jurisdiction of which government unit?
The registration of the UAE salary income tax collection status, that is, the application procedure for the employer withholding certificate number, paper certificate number application, or online account application? Website? Employer withholding certificate
What is the advance certificate number of the number?
Do you need to use the industrial and commercial certificate e-card to apply?

Evershine RD:

There is no federal personal income tax in the UAE.

WWT-AE-03 WWT Order (OD)

What is the order of UAE salary income tax withholding declaration (information flow determines tax base) and payment (fund flow)?
Pay first and then declare?
Report first and then pays?
At the same time as the declaration and payment?

Evershine RD:

There is no federal personal income tax in the UAE.

WWT-AE-04 Mechanism of Filing (MOF)

UAE’ salary income tax withholding declaration (information flow determines the tax base)
What is the method of account return?
Reporting cycle: every month? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist?
If electronic filing is possible: Web site URL?

Evershine RD:

There is no federal personal income tax in the UAE.

WWT-AE-05 Mechanism of Payment (MOP)

What is the funding method for the UAE salary income tax withholding payment (funding flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT?
Or the above methods coexist?

Evershine RD:

There is no federal personal income tax in the UAE.

BNF – Deduction of Employee Social Welfare

BNF-AE-01 BNF Entity

UAE social insurance, medical insurance, pensions, and other employee social welfare levy, is it national? Is it local?
Or is there a national plus local? If there is a national and local, are they levied separately?
Or levied together? What is the withholding tax rate?

Evershine RD:

Employers of UAE nationals are required to withhold amounts from them for pension contributions, and the employer also must pay a larger share of the total contributions remitted.

Pension contributions – Employer 12.5%, employee 5%.

Subnational Taxes

Employers of UAE nationals residing in the Emirate of Abu Dhabi are required to withhold amounts from employees for pension contributions, and the employer also must pay a larger share of the total contributions remitted.
Pension contributions – Employer 15%, employees 5%.
Abu Dhabi Health Insurance – rates are according to the terms of the policy.
Dubai Health Insurance – rates are according to the terms of the policy.

BNF-AE-02 Registration

Social Security Certificate Number? What is the name of the government agency in charge of social insurance?
Medical insurance certificate number? What is the name of the government agency in charge of medical insurance?
Pension certificate number? The name of the government agency in charge of pensions?
How to apply for the social welfare certificate number for employees in the country?
Paper certificate number application? Or online account application? Website?
Need to use the industrial and commercial certificate electronic card to apply?
Are the above three certificate numbers unified or separate?

Evershine RD:

Employers must register new employees with the General Pension and Social Security Authority at http://www.gpssa.gov.ae/ within 30 days of the employee working for the employer.
The Authority issues an Insurance Number to the employee upon the completion of his registration by the employer.
The employee should confirm with his/ her employer that registration is completed within 1 month from their joining date.

Subnational Taxes

The Abu Dhabi Pension Fund (ADPF) administers pensions and end-of service benefits for UAE nationals working in or retired from the government and private sectors in the Emirate of Abu Dhabi, and their beneficiaries.
Employers are required to register all new employees with the Abu Dhabi Pension Fund no later than 10 days after starting employment.

BNF-AE-03 BNF Order (OD)

What is the order of the withholding declaration of social welfare for UAE employees (information flow determines the tax base) and payment (fund flow)?
Pay first and then declare? Report first and then pays?
At the same time as the declaration and payment?

Evershine RD:

Same Period: Report and pay at the same time.

BNF-AE-04 Mechanism of Filing (MOF)

What is the method of reporting for withholding of social benefits for UAE employees (information flow determines the tax base)? Reporting cycle: every month? Every bimonthly? Every season? Every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist? If electronic filing is possible: Web site URL?

Evershine RD:

Contributions shall be paid to the Authority as from the beginning of the month following that against which they are due, and this period may be extended to the 15^th day of the said month.

The employer also must submit to the Authority each January a list of the salaries of its employees for that month together with the amount of their monthly pension contributions and must notify the Authority monthly of any changes in the number and salaries of its employees, on the forms required by the Authority.

Subnational Taxes

The employer must transmit pension contributions to the Abu Dhabi Pension Fund within 7 days after the month in which they accrued.
The employer also must submit to the fund each January a list of the salaries of its employees for that month together with the amount of their monthly pension contributions and must notify the fund monthly of any changes in the number and salaries of its employees.

BNF-AE-05 Mechanism of Payment (MOP)

What is the funding method for UAE employee social welfare withholding contributions (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT?
Or the above methods coexist?

Evershine RD:

General Pension and Social Security Authority (GPSSA) associates with Central Bank of United Arab Emirates (CB-UAE) to implement the UAE Fund Transfer System, in order to streamline all our pension contribution collections through all financial institution based in the UAE.
The Remittance Information (CTD-16) should consist of all the above data as part of the electronic transfer.
GPSSA contributions are made similar to staff salary distribution through the employer’s corresponding bank.
No direct deposits to the GPSSA bank accounts.
Cash, cheque payment or Wire Transfer is not acceptable.

Please be aware of below Warning:
The above contents are digested by Evershine R&D  and Education Center in December 2022.
Regulations might be changed as time goes forward and different scenarios will adopt different options.
Before choosing options, please contact us or consult with your trusted professionals in this area.

Contact Us

Dubai Evershine BPO Service Limited Corp.
Email: dxb4ww@evershinecpa.com
The Engaging Manager from Headquarter
Ms. Anna Wang, Speak German, English and Chinese.
skype: burlinna

or
For investment structure relevant to multi-national tax planning and Financial & Legal Due Diligence for M&A (Merge and Acquisition), send an email to HQ4dxb@evershinecpa.com
Dale Chen, Principal Partner/CPA in Taiwan+China+UK will be accountable for your case.
LinkedIn address:Dale Chen

Additional Information

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(version: 2024/07)

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