This move positions the UAE as a more crypto-friendly place for digital asset transactions.
This will make it easier for people and businesses to deal with cryptocurrencies. Let’s discover more about this important news for crypto transfers.
New rules encourage digital asset transactions in the UAE
On October 2, the UAE’s Federal Tax Authority (FTA) announced changes to the country’s VAT rules. These new rules mean that when people transfer or convert cryptocurrencies, they won’t have to pay extra taxes on those transactions.
According to PwC, a well-known business consultancy, the new VAT exemptions will also apply to other services, like managing investment funds and handling virtual assets. This means the UAE is not only looking to make things easier for crypto users but also to encourage investment in digital assets overall.
UAE exempts crypto transactions from VAT starting November 15, 2024, boosting the sector’s growth and investment.
The policy change eliminates the 5% VAT, fostering a more crypto-friendly regulatory environment in the UAE.
Dubai strengthens its position as a global hub… pic.twitter.com/oo7WbMg22i
— Self Custody (@iamselfcustody) October 7, 2024
What’s even more interesting is that these exemptions will be applied retrospectively, starting from January 1, 2018. This means that anyone who paid VAT on crypto transactions since then may be eligible for a refund.
Why Does This Matter?
This decision is a big deal for the UAE and the global crypto community. By cutting taxes on crypto transactions, the UAE is showing that it wants to be a leader in the digital asset space. It’s a smart move that could attract more businesses and investors to set up shop in the UAE.
Breaking: UAE exempts VAT on all crypto transactions, starting from 2018. pic.twitter.com/VqUFvnYkMg
— Crypto India (@CryptooIndia) October 6, 2024
This change also reflects a broader trend of countries trying to adapt to the growing popularity of cryptocurrencies. Many governments are still trying to figure out how to regulate digital assets, but the UAE is stepping up and taking action.
Disclaimer
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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