United Arab Emirates

Introduction: Digital currency, or cryptocurrency, is an alternative payment method developed with encryption methods. Encryption technology enables cryptocurrencies to act as both a currency and a virtual accounting system. The use and popular acceptance of cryptocurrencies like bitcoin and ethereum have grown in the last few years throughout the world economy, and the UAE has become a major player in this online financial industry. The UAE has implemented particular laws and regulations, and it is necessary for virtual asset markets to protect investors, support innovation, and ensure profitability. This is evidenced by the issuance of the securities and commodities authority's (SCA) Decision No. 23/2020, which regulates the crypto assets activities. The Central Bank of UAE and SCA regulate crypto assets and security tokens on a federal level, covering the UAE mainland and certain free zones. Article 1 of cabinet decision No. (111) of 2022 defines virtual assets, virtual asset service providers, and authority. Furthermore, Article 4 states that those who engage in virtual asset activities such as operating platforms, exchanging, transferring, trading, and custody of virtual assets must obtain approval and a license from the SCA or the relevant authorities. As per article 6, the authority has the responsibility to oversee virtual asset activities, issue regulatory decisions to ensure data protection, and coordinate anti-money laundering (AML) measures. According to the aforesaid decision, Articles 8-10 state that service providers are required to comply with the UAE's AML regulations as well as any applicable international standards, such as those established by the Financial Action Task Force (FATF). Further, Article 12 prescribes the penalties for any violation, such as warnings, fines up to AED 10 million, and more. Cabinet decision No. (112) of 2022 serves as a supplement to the previously mentioned decision No. (111) of 2022. The new decision establishes the virtual assets regulatory authority (VARA) and grants specific regulatory responsibilities for virtual assets in the emirate of Dubai. In accordance with Article 2, VARA shall be responsible for licensing and supervising virtual asset-related activities in Dubai, including free zones. It stipulates that VARA implement AML rules and regulate the applicable data protection laws, make regulatory decisions, and advise investors on the potential risk of investing in virtual assets. In addition to this, VARA develops applications for service providers to report security risks and violations, collect fees, and impose penalties, including administrative fines. Further, Article 3 states that VARA and the SCA may cooperate in developing an integrated system of supervision and control, as well as in the sharing of fees, commissions, and fines. Dubai administrative decision No. (1) of 2023 establishes a grievance committee. The grievance committee handles complaints relating to actions, penalties, and VARA inspections. Conclusion: The UAE has implemented cryptocurrency rules and regulations that aim to protect the investors and preserve financial stability. It is prohibited for the unlicensed companies offering virtual asset services. Individuals can reduce the risk associated with illicit activities, including money laundering, terrorism financing, and other financial crimes, by following these laws and regulations. Author: Dr. Hassan Elhais

Introduction: In today's world, violations of individual privacy and secret disclosure are a serious problem. It may be eavesdropping, interception, recording, and the spreading of personal information without the consent of the other party. In the UAE, crime related to individual privacy is regulated by the UAE cybercrime law as well as the UAE penal code law. What is a breach of personal information and data? As per article 6, the Federal Decree-Law No. (34) of 2021 (cybercrimes law) strictly prohibits the illicit access and misuse of personal data and information. Breach of personal information and data means unauthorized access, acquisition, modification, damage, disclosure, leakage, cancellation, deletion, copying, publication, or re-publication of electronic personal data or information using information technology. This violation may result in imprisonment of not less than six months or a fine of AED 20,000 to 100,000. The penalties may double if the data or information is related to medical records, bank accounts, or electronic payments. Furthermore, receiving, keeping, storing, or using such data with knowledge of its illegal acquisition may lead to imprisonment and penalties. What are the consequences of disclosing personal secrets and violating privacy? Article 44 of the cybercrimes law prohibits unauthorized use of information technology to breach privacy or family life and may face imprisonment for not more than six months as well as a fine of AED 150,000 to 500,000. The same article states that actions such as eavesdropping, interception, recording conversations, and the spreading of private information without consent may also be prohibited. Furthermore, the law prohibits the illicit sharing of photos of victims of accidents or incidents, deceased individuals, or casualties. Altering or editing recordings or photos with the intent to damage or abuse someone may result in imprisonment for at least one year along with a fine ranging from AED 250,000 to 500,000. In addition to this, Article 431 of Federal Decree-Law No. 31 of 2021 (penal code law) further criminalizes acts that infringe upon an individual's right to privacy and family life. The penalties may be imposed for unauthorized interference in personal space, including acts like eavesdropping, recording private conversations, and taking pictures without consent. This law restricts sharing someone’s personal or family’s information without their consent, and it may impose fines and imprisonment. Additionally, devices can be confiscated, and they can be instructed to delete the recording. Additionally, Article 432 stipulates the unlawful disclosure of secrets by individuals who have access due to their profession or status.  Opening someone’s letters or eavesdropping on calls without their consent may also result in fines and potential imprisonment as per Article 433. Additionally, Article 434 specifies penalties for illicitly replicating or sharing the confidential information obtained through one's duty. Conclusion: By understanding these laws, individuals can protect their privacy and prevent someone from interfering in their personal lives. Engaging in these actions without consent may lead to significant penalties, including imprisonment and fines. Author: Dr. Hassan Elhais

Many international residents in the UAE assume that by being resident in the country, they also automatically have tax residency. It’s a common mistake. A residence visa allows you to live and work here, but that doesn’t mean you meet the criteria for tax residency under UAE law or international standards. This mix-up can create problems, especially for those with links to more than one country. Cases of double taxation, treaty denial and reclassification are becoming more frequent. Since 2023, the UAE has applied formal rules to define tax residency. This article looks at what those rules are and how to make sure your status holds up if challenged. Immigration status does not define tax residency Holding a residence visa means you can live in the UAE, open a bank account, apply for utilities, sponsor family and, if your licence allows it, work. It doesn’t confirm where you’re tax resident. That’s a separate issue, dealt with through a different process. Immigration status is administrative. It doesn’t prove where you’re based for tax purposes unless you meet the criteria and can show it. This matters if you’re relying on the UAE as your main country of residence under a tax treaty, or trying to show authorities elsewhere that you’ve shifted your tax base. Without clear evidence, that claim may not stand. What makes someone a UAE tax resident There are three ways to qualify, each with its own threshold and supporting evidence. You only need to meet one. The first is based on where your main ties are. If your work, family, property, income or spending is mainly in the UAE, you can apply on this basis. The tax authority looks at where you normally live, where you earn and spend, and what keeps you tied to that place. You’ll need to show consistent UAE-based activity across things like housing, employment, licensing, schooling, banking and regular movement. This could mean a 12-month Ejari contract in your name, a Dubai salary credited monthly into a local bank account, school fees paid in AED and regular VAT filings under a UAE trade licence. The second route is simple: 183 days in the UAE over a 12-month stretch. Days don’t need to be consecutive. Part days count. If your passport shows enough time in the country and your supporting records back that up, you qualify. This is the most straightforward option but only works if you’re genuinely present long enough. The third option applies to UAE or GCC nationals, residents or UAE passport holders. If you’ve spent 90 days in the country during the past 12 months and have strong links such as a permanent home, employer or owned business in the UAE, you may qualify. You’ll need clear documentation that proves both time and ties. In all cases, it’s about the whole picture. One-off visits, on-paper addresses or irregular presence don’t pass the test. The FTA wants to see where your life actually happens. And if it’s split between countries, they’ll look at which part carries more weight. How to prove tax residency in the UAE To prove tax residency, you’ll need a Tax Residency Certificate from the Federal Tax Authority. For example, a Dubai-based freelancer who bills international clients might need the certificate to avoid 30% withholding tax in their client’s home country. This is what foreign tax authorities recognise when assessing treaty claims or deciding if another country can tax your income. To apply, you’ll need to show at least 183 days of presence in the UAE within the last 12 months, backed by passport entry and exit stamps. You must also provide a copy of your Emirates ID, UAE residence visa, tenancy contract, bank statements showing local activity, and a salary certificate or trade licence, depending on whether you’re employed or self-employed. The application is submitted through the FTA’s online portal. The current fee is AED 1,000 for individuals, plus AED 3,000 for the certificate itself. Without a TRC, your home country may ignore your UAE status entirely. The certificate is often the deciding factor in whether you’re treated as tax resident in the eyes of other governments. Tax residency conflicts and how they’re resolved Claiming tax residency in the UAE doesn’t stop another country from doing the same. If your home country sees enough ongoing ties, it may still treat you as tax resident and try to tax your global income. That’s when conflicts arise. The OECD tie-breaker rules apply when two countries both assert tax residency. They follow a set order. First, where’s your permanent home? If there’s more than one, which country are your personal and economic ties closer to? If that’s still unclear, they look at where you usually live, then your nationality. If none of these settle the matter, the two tax authorities are expected to reach a mutual agreement. This becomes a problem when someone holds a UAE tax certificate, but their family lives abroad, they own property back home, or they’re still active in a business based there. Even if they spend most of the year in the UAE, foreign tax authorities may argue those ties carry more weight than time spent. The result can be a treaty denial or competing tax claims. In practice, the burden of proof tends to fall on the taxpayer. Ties, presence and proof Time on the ground in the UAE helps, but it doesn’t settle the matter. Tax residency depends on where your life is based in practice, not just on paper. Without clear ties and consistent records, a visa won’t carry much weight. This matters most for people with property, business activity or family elsewhere, where conflicting claims can arise. Anyone relying on UAE tax residency should keep clear records of their presence and maintain evidence of local ties. If your bank account is dormant, your lease ends mid-year, or you’re frequently abroad, it could weaken your case. Key indicators the FTA and foreign tax authorities may look at include: Ejari or title deed in your name covering the full 12 months Local salary or revenue credited monthly into a UAE account Active bank account showing regular transactions in AED Consistent physical presence (at least 90 or 183 days, depending on your status) Dependents and schooling based in the UAE Minimal ongoing ties abroad, such as property, directorships or family based elsewhere A proactive review now can help prevent complications with foreign tax authorities later. What matters is consistency, which means time, ties and records that all point in the same direction. When the facts are clear and well documented, residency is much easier to support.

Dubai, UAE | 22 July 2025 MB secures EUR 1 million victory for PGM Technologies in DIFC cross-border dispute We are delighted to announce that Matouk Bassiouny’s (“MB”) International Dispute Resolution team successfully obtained a favourable judgment for PGM Technologies in a cross-border breach of contract case before the Dubai International Financial Centre (“DIFC”) Courts. The dispute arose from a breach of contractual obligations, payment defaults, and the enforcement of agreed terms. The DIFC Court awarded our client full recovery of EUR 1,000,000, together with contractual interest at 5% per annum from the date of breach, post-judgment interest at the same rate until payment, and costs totalling USD 100,752.28. The team advising on this case was led by Ahmed Tony (Partner), supported by Youssef Nassar (Senior Associate) and Alia Elraey (Associate). Led by Founding Partner and Group Head of Dispute Resolution, F. John Matouk, our International Dispute Resolution team brings extensive experience in representing clients before the ADGM and DIFC Courts in the UAE. Our team is common law qualified, with F. John Matouk admitted in New York, Ahmed Tony in England and Wales, Youssef Nassar in New York, and Alia Elraey in England and Wales. As part of our commitment to providing comprehensive legal services, we collaborate with specialist barristers to ensure our clients receive the highest quality representation throughout the litigation process.         For more about Matouk Bassiouny, check out our website at https://matoukbassiouny.com/.