قانون الضرائب في الإماراتLaw No. (2) of 2018 Concerning the Innovation Dirham Fee

Article (1) This Law will be cited as “Law No. (2) of 2018 Concerning the Innovation Dirham Fee”. Definitions

Article (2) The following words and expressions, wherever mentioned in this Law, will have the meaning indicated opposite each of them unless the context implies otherwise: ©2018 The Supreme Legislation Committee in the Emirate of Dubai 1Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text will prevail.

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Law No. (2) of 2018 Concerning the Innovation Dirham Fee Page 2 of 6 Objectives of the Law

Article (4) The provisions of this Law will apply to all Revenues, including those collected by any federal government entity on behalf of the Public Treasury of the Government. Collecting the Innovation Dirham Fee

Article (5) An “Innovation Dirham Fee” in the amount of ten Dirhams (AED 10.00) will be charged on the Revenue collected by a Government Entity in return for the services it provides and the activities it conducts. The proceeds of the Innovation Dirham Fee will be paid in full to the DFF. Revenues Exempt from the Innovation Dirham Fee

Article (8) a. A refund of an amount paid as Innovation Dirham Fee may be requested in case there is an error in collecting or calculating this fee. b. An amount collected as Innovation Dirham Fee may not be refunded where the client cancels the service in respect of whose Revenue the Innovation Dirham Fee has been collected. Depositing the Innovation Dirham Fee

Article (9) a. A Government Entity which collects the Innovation Dirham Fee by itself or through private entities it contracts must, by the end of each month, transfer the proceeds of this fee to the DOF; and submit a financial report with all the details determined by the DOF. b. The DOF must deposit the proceeds of the Innovation Dirham Fee collected pursuant to this Law in a special account with a local bank in the name of the DFF.

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Law No. (2) of 2018 Concerning the Innovation Dirham Fee Page 5 of 6 Formation of the Investment Committee

Article (10) Pursuant to a resolution of the Chairman, a committee named the “Innovation Dirham Fee Investment Committee” will be formed. The committee will identify the areas of investment and development of the Innovation Dirham Fee proceeds; propose the allocation of the proceeds of the Innovation Dirham Fee to support innovation-related projects; and present the same to the Board of Trustees for approval. The committee will also perform any other duties assigned to it by the Chairman or the Board of Trustees. Functions of the Board of Trustees

Article (11) For purposes of this Law, the Board of Trustees will establish the bylaws, policies, and standards pertaining to innovation-related projects. These bylaws, policies, and standards will be approved by the Chairman or his authorised representative in preparation for circulating them to Government Entities. Withdrawal and Disbursement from Bank Account

Article (12) The Chairman or his authorised representative will have the authority to withdraw, disburse, and transfer any amounts from the Innovation Dirham Fee bank account in accordance with the financial approval authorities adopted by the DFF. Functions of the DOF

Article (13) For purposes of this Law, the DOF will: 1. determine any dispute arising in connection with the Innovation Dirham Fee, whether the dispute relates to the type of the Revenue to which the Innovation Dirham Fee applies, or to collection methods and rules; and 2. propose the Revenues to which the Innovation Dirham Fee applies, and submit the relevant recommendations to the Supreme Fiscal Committee for approval.

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Law No. (2) of 2018 Concerning the Innovation Dirham Fee Page 6 of 6 Issuing Implementing Resolutions

Article (14) The Chairman will issue the resolutions required for the implementation of the provisions of this Law. Repeals

Article (15) The above-mentioned Law No. (20) of 2015 and its Implementing Bylaw are hereby repealed. Any provision in any other legislation will also be repealed to the extent that it contradicts the provisions of this Law. Publication and Commencement

Article (16) This Law will be published in the Official Gazette and will come into force on the day on which it is published. Mohammed bin Rashid Al Maktoum Ruler of Dubai Issued in Dubai on 23 January 2018 Corresponding to 6 Jumada al-Ula 1439 A.H.

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