Dubai introduces innovation fee on all transactions for government services

Dubai introduces innovation fee on all transactions for government services

According to law No. 2 of 2018 issued by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, government bodies will charge a fee of Dh10 for each transaction it makes. The revenues of the innovation fees will entirely go to the Dubai Future Foundation (DFF), to boost the emirate’s innovation environment.

Shaikh Mohammad also issued law No 1 for 2018 on the knowledge Dirham, which annuls law No.4 of 2005, with the money collected from the knowledge fees being allocated to Dubai government’s treasury. He issued the two laws in his capacity as the Ruler of Dubai.

The introduction of the innovation fee aims to support government efforts to develop education and culture and engage community members in educational and cultural projects implemented in the emirate.

The knowledge and innovation fees will not be levied for government services and transactions valued at less than Dh50.

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As per Law No. 2 of 2018, the Chairman of DFF’s Board of Trustees will set up the ‘Innovation Dirham Investment Committee’ to explore opportunities for investing revenues from the Innovation Dirham, and identifying innovative projects for support. Suggestions for investment and allocation will presented to the Board of Trustees for approval.
The Chairman of the DFF’s Board of Trustees will issue the necessary resolutions to implement the Law. The Law annuls Law No. 20 of 2015 on the Innovation Dirham Fee and its executive regulations and any other legislation that contradicts it. The Law will be effective from the date of its publication in the official gazette. 

The Knowledge Dirham and Innovation Dirham will not be refunded when transactions are cancelled. They will not be charged for transactions less than Dh50, and for taxes set by the Finance Department of DFF.

Healthcare Services provided by government entities are exempted from the Knowledge Dirham and Innovation Dirham, in addition to traffic fines for violations committed in Dubai, which are collected in other emirates or other GCC countries, as well as fines for violations committed in other emirates or GCC countries collected by authorities in Dubai.