by UnitedVat
Posted on Oct 27, 2017
Value-added tax (VAT) will not be applicable on the sale and purchase of share transactions conducted by investors in UAE stock markets,said a senior government official
The platform is set for VAT to be implemented in UAE and statement has come that stock market will be out of VAT. The tax system will not be applicable on the sale and purchase of share transactions. Also, officials said that there will be no tax on profit margins as well.
According to the stats Dubai Financial Market Dh 451.2 million shares changing hands worth Dh 525.2 million. ADSE (Abu Dhabi Securities Exchange) witnessed transaction of Dh 62.8 million shares trading worth Dh 100.6 worth. VAT will be implemented as per agreement of GCC (Gulf Cooperation Council) body of multiple neighbouring gulf countries. In the country 5 percent VAT will be levied on Goods and Services from January 2018.
The executive regulation for VAT has been finalized by the federal authority. The authority will offer information about the tax system and executive laws will be published on the authority's website once approved. There has been statement about the confirmation of financial brokerage firms. The threshold has been to be Minimum of Dh 3, 75, 000 annually will have to pay Value Added Tax.
There has been statement from the finance ministry about the commitment of work with highest level of transparency and disclosure. All the information will be published once the executive regulation has been issued in the Official Gazette.
According to the tax experts in UAE 5% VAT will not be levied on amount withdrawn from ATMs of banks other than their own bank - but only on the Dh2 fee will be charged by the banks.
Declining the news of the delay in implementation of VAT in UAE Khalid Ali Al Bustani, director general of the Federal Tax Authority, says VAT will start as planned on Jan 1 2018.
Executive Regulations for the Federal Decree-Law No. (8) of 2017 on Value Added Tax, VAT were signed and approved by the Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE.
