UAE’s New Weekend: Implication for Taxpayers

Insync with the World

In 2022 public sector weekends have officially switched to Saturday and Sunday in the United Arab Emirates (UAE), as the country aligned its working week with global markets. The good news is the government also announced a four-and-a-half day working week for federal government departments. Their staff has been given the leeway to choose to work from home on Fridays, as well as to arrange their working hours on a flexi-time basis. Friday sermons and prayers will be held after 1.15 pm year-round in the UAE.

The door has been left open for private companies to decide the weekend that best suits their business. Most businesses have already changed their work schedules to the new weekend. Schools across the country have also changed their timetables in line with the four-and-a-half-day week.

Undeniably, there are huge benefits to shorter workweeks. With employees given a judicious work-life balance, they feel happier, healthier and thus would be more productive during their working hours.

Tracing the history of holiday patterns, the UAE had an official six-day working week with Friday given as a day off between 1971 -1999. Thursday was added to create a two-day weekend in 1999. In 2006, the UAE moved its weekend from Thursday and Friday to Friday and Saturday.


Possible Impact on Taxpayers

  • The due date for submitting tax returns and payment of tax is the 28th day following the end of the tax period. If this date happens to fall on a weekend or a national holiday, the deadline is extended to the next working day.
  • The new weekend may even impact the timelines for other tax procedures: tax registration and de-registration, review of administrative penalties, tax dispute resolution.


Note:

Taxpayers should consider the changes the new weekend brings on timelines for tax filing, payment and other tax procedures. Failure to meet stipulated deadlines will lead to levy of penalties.

Should you need any clarification, you may further contact our Tax Experts.