With the clock running out on December 31, 2024, businesses across the United Arab Emirates are faced with urgent deadlines to meet Emiratisation targets and register for corporate tax compliance. The Ministry of Human Resources and Emiratisation (MoHRE) has set specific requirements for organizations, spearheading efforts to connect talented Emiratis with job opportunities.
According to MoHRE, larger firms must increase their Emirati workforce by 2%, focusing on skilled positions by the end of the year. The Ministry's message was clear and direct, as articulated on social media: "Calling all our partners in the private sector. 31 December is the deadline to meet 2024 Emiratisation targets for establishments included in the decision." This call to action emphasizes the heightened need for compliance as the deadline approaches.
For smaller firms, especially those with between 20 and 49 employees, the requirement is less rigorous but still significant. These companies must hire at least one Emirati national and retain previously employed Emiratis. Should they fail to meet these targets, hefty fines await, amounting to AED 96,000 for each unfilled Emirati position.
MoHRE recently reported notable progress, with over 124,000 Emiratis employed across 23,000 private companies. This figure reflects significant strides toward integrating Emiratis within various industries, showcasing the UAE government's commitment to enhancing its labor market diversity. The Ministry has encouraged businesses to leverage the Nafis programme, which facilitates connections between Emirati talent and job openings.
Meanwhile, the Federal Tax Authority has reiterated the urgency of corporate tax registration, also due by December 31, 2024. The authority specified this reminder is directed at resident juridical entities established before March 1, 2024. For those whose licenses were issued during August and September, the same deadline applies to avoid late registration penalties. This tax registration process is available via several means, including through Emara Tax and approved tax agents.
Failure to register by the end of the year could lead to administrative penalties, adding another layer of urgency for business owners. To avoid potential fines and legal repercussions, compliance with tax requirements is equally important for sustaining their operations.
With both Emiratisation targets and corporate tax registration deadlines looming, the Ministry has underscored the need for companies to monitor compliance carefully. Any signs of fraudulent practices, such as fake Emiratisation efforts, will not be tolerated—the Ministry possesses monitoring systems capable of identifying non-compliance. Legal actions could range from reclassification within the Ministry’s establishment classification system to potential court referrals.
MoHRE has also taken steps to guide Emirati jobseekers, urging them to verify the authenticity of job offers and report any fraudulent claims or malpractices they encounter. By providing accessible avenues through its hotline and mobile applications for reporting violations, the Ministry helps strengthen accountability within the employment market.
With significant structural objectives at stake, it’s evident the UAE is placing heightened importance on inclusivity within its workforce. The deadlines of December 31, 2024, mark not only the end of the year but symbolize pivotal milestones for the Emirati labor market and the country’s long-term economic vision.
Companies must act quickly and decisively to align with these requirements, ensuring they are part of the national effort to empower Emiratis and cultivate a diverse workforce. The urgency surrounding these deadlines reflects the UAE's strategic push toward becoming more inclusive, requiring both businesses and jobseekers to engage actively with the nation’s development goals.
