Dubai residents, please be advised about a new fee for government transactions. An additional AED 10 will be charged for every transaction, based on Law No. 01 and Law No. 02 of 2018, which are the Knowledge Dirham Fee and Innovation Dirham Fee, respectively.
These laws have been issued recently by the Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum. Notably, the Knowledge Dirham Fee and Innovation Dirham Fee will not be charged for transactions below AED 50.
Ruler of Dubai Issues Knowledge & Innovation Fee Laws
As per the law, the Knowledge Dirham Fee and Innovation Dirham Fee will be charged for every government transaction. Each type of fee shall serve a different purpose:
Knowledge Dirham Fee (Law No. 01 of 2018)
This law seeks to engage Dubai residents in supporting the city’s cultural and educational projects. It also aims to establish clear and simple procedures for collecting the said fee. Consequently, it annuls Law No. 04 of 2005, which also levies the Knowledge Dirham Fee.
Innovation Dirham Fee (Law No. 02 of 2018)
The purpose of this law is to engage Dubai residents in supporting innovation-related projects. Collection revenues will be allocated to the Dubai Future Foundation or DFF. Accordingly, it annuls Law No. 20 of 2015, which also levies the Innovation Dirham Fee.
The law also mandates the Chairman of DFF’s Board of Trustees to form an Innovation Dirham Investment Committee. This group shall explore opportunities and identify projects wherein collection revenues will be invested — upon the approval of the Board of Trustees.
Both laws will be effective based on their date of publication in the Official Gazette.
Knowledge & Innovation Dirham Fee Exemptions
As cited earlier, the Knowledge Dirham Fee and Innovation Dirham Fee will not be charged for transactions below AED 50. Certain services and transactions are exempted as well, namely:
- Healthcare services provided by government agencies
- Traffic fines for violations committed in Dubai that are collected in other emirates or GCC countries
- Fines for violations committed in other emirates or GCC countries that are collected in Dubai
Aside from the Knowledge Dirham Fee and Innovation Dirham Fee, another recent requirement for residents is the Good Conduct and Behavior Certificate. This is necessary for getting a work visa permit in the UAE. If you need this, here is our guide on how to apply for a Good Conduct Certificate.