A senior government official of Federal Tax Authority has recently clarified that no Value Added Tax (VAT) will be imposed on the sale and purchase of shares conducted by investors in UAE stock markets.
Khalid Al Bustani, director-general, Federal Tax Authority, pointed out that there would be no tax on profit margins as well.
As part of the wider Gulf Cooperation Council agreement, the UAE has announced to implement 5 per cent VAT on certain goods and services from January 2018.
The Federal Authority is finalising the executive regulations for VAT, which will offer all inquiries about the tax, Al Bustani was quoted as saying in an interview with Arabic daily Al Bayan.
The executive laws will be published on the authority’s website once approved, he said.
In previous statements, Al Bustani confirmed that financial brokerage firms, whose annual revenues reach – or cross – Dh375,000 will be subject to taxation and they will have to register for the VAT.
