The UAE's telecoms operators e& and Emirates Integrated Telecommunications Company, known as du, will start paying corporate tax and royalties to the federal government under a new and simplified structure starting from January 1 next year.
Technology company e&, formerly known as the Etisalat Group, will pay a minimum aggregate amount of Dh5.7 billion ($1.55 billion) in corporate tax and federal royalty, the company said in a regulatory filing to the Abu Dhabi Securities Exchange, where its shares are traded.
The aggregate amount of royalty and corporate tax payable by EITC shall not be lower than Dh1.8 billion a year, du said in a separate bourse filing to the Dubai Financial Market on Tuesday.
The new royalty regime will be effective from 2024 to 2026 in the context of the new corporate tax regime, it said.
The telecoms operators said they have received new guidelines from the government, under which the federal royalty rate of 38 per cent will be applied to the sum of “regulated and non-regulated” UAE net profit.
The 9 per cent corporate tax law will apply to e& from the beginning of next year, it said.
The aggregate annual amount of royalty and corporate tax shall be paid within five months from the end of the fiscal year, it added.
The two operators said their profits attributable to non-controlling interest holders of UAE-controlled entities will be excluded from the royalty calculation.
Profit generated by international entities, dividend distributions, or other profits from international investments that are subject to a local corporate tax, will also be excluded from the royalty calculation.
“We believe that the new royalty structure is more simplified and avoids complexity in the calculation,” e& said.
“Based on our initial assessment, the combined impact of royalty and corporate tax will be neutral to e&’s financials.”
Du said the new royalty regime ensures “clarity” by pegging the calculations solely to net profit.
“Based on our initial assessment, the aggregate amount of corporate tax and royalty under the new regime will not be higher than the royalty under the old regime,” it said.
E&, which has transformed into a technology investment conglomerate over the past few years, reported a 20 per cent jump in its third quarter net income as its subscriber base grew.
Consolidated net profit in the three months up to September 30 increased to Dh3 billion as revenue reached Dh13.4 billion.
E&’s total subscribers climbed to 167 million at the end of September, about five million more than the same period last year.
Du also reported a strong third-quarter as its net profit surged 60 per cent Dh502.37 million.
It posted a 3.7 per cent annual rise in revenue in the July-September quarter to Dh3.29 billion, driven by a 5.7 per cent growth in mobile service revenue to more than Dh1.5 billion.
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Sui Dhaaga: Made in India
Director: Sharat Katariya
Starring: Varun Dhawan, Anushka Sharma, Raghubir Yadav
3.5/5
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
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Other promotions
- Deliveroo will team up with Pineapple Express to offer customers near JLT a special treat: free banana caramel dessert with all orders on January 26
- Jones the Grocer will have their limited edition Australia Day menu available until the end of the month (January 31)
- Australian Vet in Abu Dhabi (with locations in Khalifa City A and Reem Island) will have a 15 per cent off all store items (excluding medications)
Generation Start-up: Awok company profile
Started: 2013
Founder: Ulugbek Yuldashev
Sector: e-commerce
Size: 600 plus
Stage: still in talks with VCs
Principal Investors: self-financed by founder
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England's lowest Test innings
- 45 v Australia in Sydney, January 28, 1887
- 46 v West Indies in Port of Spain, March 25, 1994
- 51 v West Indies in Kingston, February 4, 2009
- 52 v Australia at The Oval, August 14, 1948
- 53 v Australia at Lord's, July 16, 1888
- 58 v New Zealand in Auckland, March 22, 2018
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Bharatanatyam
A ancient classical dance from the southern Indian state of Tamil Nadu. Intricate footwork and expressions are used to denote spiritual stories and ideas.
England squads for Test and T20 series against New Zealand
Test squad: Joe Root (capt), Jofra Archer, Stuart Broad, Rory Burns, Jos Buttler, Zak Crawley, Sam Curran, Joe Denly, Jack Leach, Saqib Mahmood, Matthew Parkinson, Ollie Pope, Dominic Sibley, Ben Stokes, Chris Woakes
T20 squad: Eoin Morgan (capt), Jonny Bairstow, Tom Banton, Sam Billings, Pat Brown, Sam Curran, Tom Curran, Joe Denly, Lewis Gregory, Chris Jordan, Saqib Mahmood, Dawid Malan, Matt Parkinson, Adil Rashid, James Vince
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The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
