Law No. (2) of 2018
Concerning the
Innovation Dirham Fee[1]
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We, Mohammed bin Rashid Al Maktoum, Ruler of
Dubai,
After
perusal of:
Law No. (5)
of 1995 Establishing the Department of Finance;
Law No. (14)
of 2009 Concerning the Pricing of Government Services in the Emirate of Dubai
and its amendments;
Law No. (19)
of 2015 Establishing the Museum of the Future and its amendments;
Law No. (20)
of 2015 Imposing the Innovation Dirham Fee and its Implementing Bylaw;
Law No. (1)
of 2016 Concerning the Financial Regulations of the Government of Dubai; and
Decree No.
(24) of 2007 Forming the Supreme Fiscal Committee in the Emirate of Dubai and
its amendments,
Do hereby issue this Law.
This Law will be cited as “Law No. (2) of 2018
Concerning the Innovation Dirham Fee”.
The
following words and expressions, wherever mentioned in this Law, will have the meaning
indicated opposite each of them unless the context implies otherwise:
|
Emirate: |
The
Emirate of Dubai. |
|
Government: |
The
Government of Dubai. |
|
DOF: |
The
Department of Finance. |
|
DFF: |
The
Dubai Future Foundation. |
|
Board
of Trustees: |
The
board of trustees of the DFF. |
|
Chairman: |
The
chairman of the Board of Trustees. |
|
Government
Entity: |
Any
of the Government departments; public agencies and corporations; Government
councils and authorities, including the authorities supervising Special
Development Zones and free zones, such as the Dubai International Financial
Centre; or other entities
affiliated to the Government. |
|
Revenue: |
Financial
proceeds generated from the services provided and the activities conducted by
a Government Entity. This includes fees, fines, sale proceeds, rent, proceeds
from franchises, and proceeds from encashing
guarantees. |
|
Innovation
Dirham Fee: |
The
fee collected pursuant to the provisions of this Law. |
This Law
aims to:
1. provide the support required for innovation-related projects;
2. ensure that members and all categories of the community bear part of the costs and burdens incurred by the Government in the field of innovation; and
3. ensure that the collection of the Innovation Dirham Fee is in accordance with clear and simplified rules.
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.
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.
The
Innovation Dirham Fee will not be collected in respect of Revenues generated from:
1. the services and activities whose Revenue is less than fifty Dirhams (AED 50.00);
2. the tariffs and prices collected by Government Entities in return for the goods and services they provide;
3. the fiscal charges determined by the DOF;
4. the costs of medical treatment and healthcare services provided by the healthcare facilities affiliated to the Government;
5. traffic violations which are committed in the Emirate and whose prescribed fines are collected by any other emirate or by any Gulf Corporation Council state;
6. traffic violations which are committed in any other emirate or in any Gulf Corporation Council state and whose prescribed fines are collected by the concerned entities in the Emirate;
7. the services provided to Government Entities whose budgets are included in the General Budget of the Government;
8. the services that are exempt from fees; and
9. any other services or activities determined by the DOF upon the recommendation of the DFF.
a. The Innovation Dirham Fee will be collected subject to the following rules:
1. The Innovation Dirham Fee will be collected in respect of the Revenue generated from any service or activity, including the Revenues generated from the fines imposed for acts constituting violations under the legislation in force in the Emirate.
2. Where a financial claim includes multiple Revenues generated from various services or activities that are provided or conducted through one or more steps, the Innovation Dirham Fee will be collected in respect of each Revenue separately.
3. Where a financial claim includes multiple Revenues generated from various services or activities that are provided or conducted by more than one Government Entity, the Innovation Dirham Fee will be collected in respect of each Revenue separately, whether these services or activities have been provided or conducted through a single window or by each entity separately.
b. The Innovation Dirham Fee will be collected upon collecting the relevant Revenue, whether through ordinary, electronic, or smart collection methods.
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.
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.
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.
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.
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.
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.
The Chairman will issue the
resolutions required for the implementation of the provisions of this Law.
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.
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.
©2018
The Supreme Legislation Committee in the Emirate of Dubai
[1]Every 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.