The Ministry of Finance says it is streamlining tax laws. Khushnum Bhandari / The National
The Ministry of Finance says it is streamlining tax laws. Khushnum Bhandari / The National
The Ministry of Finance says it is streamlining tax laws. Khushnum Bhandari / The National
The Ministry of Finance says it is streamlining tax laws. Khushnum Bhandari / The National

UAE amends VAT law to exempt fund management firms and certain virtual asset services


Alvin R Cabral
  • English
  • Arabic

The UAE has amended its value-added tax law to exempt certain entities, as the government seeks to increase the attractiveness of the Emirates' investment environment and further support economic growth.

Investment fund management services will now be exempt from the tax, to stimulate growth in the sector "and increase the UAE’s attractiveness as a leading investment hub", the Ministry of Finance said on Saturday.

Certain services related to virtual assets will also be exempt, as "part of efforts to support innovation and advanced financial technology, further positioning the UAE as a prominent centre for virtual asset investment", it added. The ministry did not specify which virtual assets are covered.

In addition, in-kind donations between charitable and government entities will also become exempt from VAT, for values up to Dh5 million ($1.36 million) over a 12-month period, allowing donors to recover the VAT incurred for their donations, "easing the burden on these entities and enhancing their societal role".

“The ministry is committed to co-ordinating with relevant stakeholders from both the public and private sectors and working to update our regulations to enhance the UAE's business environment," said Younis Al Khoori, Undersecretary at the Ministry of Finance.

“We believe these amendments will help minimise misunderstandings or incorrect applications of the law, as well as simplify procedures for taxpayers in line with international best practices, ultimately contributing to an improved quality of life for all."

The amendments to Federal Decree-Law No 8 of 2017 on VAT "strengthen tax compliance by granting the Federal Tax Authority the authority to deregister taxpayers in specific cases, ensuring the integrity of the tax system and improving the efficiency of tax administration", the ministry added.

The UAE in 2018 introduced 5 per cent VAT on a majority of goods and services as part of its push to diversify the economy and reduce its dependence on oil. The tax is a general consumption tax and is imposed on most goods and services that are bought and sold.

The ministry had also introduced other programmes, including corporate tax, designed to strengthen support for the business sector, which in turn promotes economic growth.

Some categories are already exempt from VAT, including the supply of a number of financial services, residential properties, bare land and local passenger transport.

The supply of certain education services and healthcare services, and exports of goods and services to outside the GCC and certain investment-grade precious metals are subject to 0 per cent VAT, according to the Ministry of Finance's website.

A business is required to register for VAT if its taxable supplies and imports exceed the notified threshold of Dh375,000. Tourists visiting the country, meanwhile, can also claim a refund of 85 per cent of the VAT paid on goods bought in the UAE before they leave the country.

Duties help boost the UAE's coffers: the government's revenue for the fourth quarter of 2023 jumped more than 8 per cent on an annual basis to Dh155.9 billion ($42.45 billion) as the Arab world’s second-largest economy continues to diversify its sources of revenue.

The new amendments "were designed in accordance with international best practices, taking into account the GCC Unified VAT Agreement, past experiences, challenges faced by the business community and stakeholder recommendations", the ministry said.

Pari

Produced by: Clean Slate Films (Anushka Sharma, Karnesh Sharma) & KriArj Entertainment

Director: Prosit Roy

Starring: Anushka Sharma, Parambrata Chattopadhyay, Ritabhari Chakraborty, Rajat Kapoor, Mansi Multani

Three stars

The squad traveling to Brazil:

Faisal Al Ketbi, Ibrahim Al Hosani, Khalfan Humaid Balhol, Khalifa Saeed Al Suwaidi, Mubarak Basharhil, Obaid Salem Al Nuaimi, Saeed Juma Al Mazrouei, Saoud Abdulla Al Hammadi, Taleb Al Kirbi, Yahia Mansour Al Hammadi, Zayed Al Kaabi, Zayed Saif Al Mansoori, Saaid Haj Hamdou, Hamad Saeed Al Nuaimi. Coaches Roberto Lima and Alex Paz.

Ferrari 12Cilindri specs

Engine: naturally aspirated 6.5-liter V12

Power: 819hp

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Price: From Dh1,700,000

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Some of Darwish's last words

"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008

His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.

Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
Expert advice

“Join in with a group like Cycle Safe Dubai or TrainYAS, where you’ll meet like-minded people and always have support on hand.”

Stewart Howison, co-founder of Cycle Safe Dubai and owner of Revolution Cycles

“When you sweat a lot, you lose a lot of salt and other electrolytes from your body. If your electrolytes drop enough, you will be at risk of cramping. To prevent salt deficiency, simply add an electrolyte mix to your water.”

Cornelia Gloor, head of RAK Hospital’s Rehabilitation and Physiotherapy Centre 

“Don’t make the mistake of thinking you can ride as fast or as far during the summer as you do in cooler weather. The heat will make you expend more energy to maintain a speed that might normally be comfortable, so pace yourself when riding during the hotter parts of the day.”

Chandrashekar Nandi, physiotherapist at Burjeel Hospital in Dubai
 

Du Football Champions

The fourth season of du Football Champions was launched at Gitex on Wednesday alongside the Middle East’s first sports-tech scouting platform.“du Talents”, which enables aspiring footballers to upload their profiles and highlights reels and communicate directly with coaches, is designed to extend the reach of the programme, which has already attracted more than 21,500 players in its first three years.

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UAE currency: the story behind the money in your pockets
Saturday's results

Brighton 1-1 Leicester City
Everton 1-0 Cardiff City
Manchester United 0-0 Crystal Palace
Watford 0-3 Liverpool
West Ham United 0-4 Manchester City

New Zealand squad

Tim Southee (capt), Trent Boult (games 4 and 5), Colin de Grandhomme, Lockie Ferguson (games 1-3), Martin Guptill, Scott Kuggeleijn, Daryl Mitchell, Colin Munro, Jimmy Neesham, Mitchell Santner, Tim Seifert, Ish Sodhi, Ross Taylor, Blair Tickner

The biog

Name: Sari Al Zubaidi

Occupation: co-founder of Cafe di Rosati

Age: 42

Marital status: single

Favourite drink: drip coffee V60

Favourite destination: Bali, Indonesia 

Favourite book: 100 Years of Solitude 

While you're here
Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Updated: October 05, 2024, 12:50 PM`