Dubai introduces innovation fees for government transactions
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, in his capacity as Ruler of Dubai, has issued Law No (1) of 2018 on the Knowledge Dirham Fee, and Law No (2) of 2018 on the Innovation Dirham Fee.
As per Law No (1) of 2018, the Knowledge Dirham Fee will be levied on all transactions for government services in Dubai, including federal government services whose revenues are allocated to the Public Treasury of the Government of Dubai.
Law No (2) of 2018 on the Innovation Dirham Fee aims to support innovation-related projects and involve the public in supporting innovation. As per the law, Dubai government entities will charge an Innovation Dirham Fee of Dh10 for all transactions. The revenues generated from the fee will be allocated to the Dubai Future Foundation (DFF).
Law No (1) aims to involve the community in supporting educational and cultural projects in Dubai, as well as create simple and clear procedures for the collection of the Knowledge Dirham Fee.
As per Law No (1), a Knowledge Dirham Fee of Dh10 will be charged for services provided by a government entity.
The law annuls Law No (4) of 2005 on levying the Knowledge Dirham Fee and its amendments and executive order. The law also annuls any other legislation that contradicts it. As per Law No (2) of 2018, the chairman of DFF’s board of trustees will set up the ‘Innovation Dirham Investment Committee’ to explore opportunities for investing revenues from the Innovation Dirham.
The law annuls Law No (20) of 2015 on the Innovation Dirham Fee and any other legislation that contradicts it. The laws will be effective from the date of its publication in the official gazette.
The Knowledge Dirham and Innovation Dirham will not be refunded when transactions are cancelled. They will not be charged for transactions less than Dh50, and for taxes set by the Finance Department of the DFF.
Healthcare Services provided by government entities are exempted from the Knowledge Dirham and Innovation Dirham, in addition to traffic fines for violations committed in Dubai which are collected in other emirates, as well as fines for violations committed in other emirates collected by authorities in Dubai.
Source: Khaleej Times