Table of Contents
Virtual assets and investment fund management are no longer subject to value-added tax, according to an updated version of the Executive Regulation of Federal Decree Law released on October 2 by the UAE Federal Tax Authority (FTA).
The adjustments made in response to a Cabinet decision are effective November 15 this year.
These revisions attempt to align with previous revisions to the Decree-Law and other applicable tax laws, clarify important clauses and processes, and provide more information.
According to the new law, which pertains to financial services, management of investment funds, ownership and transfer of virtual assets, including cryptocurrencies, and conversion of virtual assets, would not be subject to value-added tax.
The exceptions regarding virtual asset conversion, transfer, and ownership went into force as of January 1, 2018.
The UAE determined that a variety of activities were free from VAT last week, including the exchange of digital assets, such as digital currencies, the storage and oversight of virtual assets, and the transformation of virtual assets.
The UAE's moves are an effort to boost the development of such innovative regulatory systems.
Moving away from the United States, where clarity is still lacking, and towards India, where a 30 per cent tax has effectively driven offshore activity, other nations have adopted alternative approaches.
However, market participants can rest easy knowing that the United Arab Emirates is still unrivalled in digital assets.
Recent research from Henley&Partners places the UAE atop this year's crypto adoption Index, placing it in the top 12 nations for both public adoption and technological innovation.
The research cites the UAE's low-tax jurisdiction as an appealing environment for crypto enterprises, which is a key factor in the country's crypto growth.
The UAE is second only to the United States in terms of popular adoption of cryptocurrency. Surprisingly, no other Arab nation made it into this year's top 12.
According to the Index, the UAE is a top destination for cryptocurrency investors, with many in the Emirate interested, and already invested in digital assets.
A robust startup environment and solid government assistance are in sync with this level of excitement.
The latest tax exemption will add to its allure for crypto investors looking for places to invest in digital assets.
Elsewhere
Events
GeckoCon (Bangkok, 11 November 2024)
GeckoCon returns, and this year we're diving into the revolutionary world of Web3 Gaming! Discover how the fusion of blockchain and traditional gaming is creating a whole new entertainment layer.Don't miss out—visit CoinGecko now to secure your spot in our first ever Hybrid Conference set to take place in Bangkok, Thailand. Or from the comforts of your home!
Get your tickets now with Blockhead's 40% code: BHGC24
[Limited to 30 redemptions, expires 31 October 2024]
[Redacted] (Bangkok, 9-11 November 2024)
The [REDACTED] conference is bringing together the brightest minds in technology for a transformative three-day event from November 9-11, 2024, at the Avani Riverside hotel. This gathering will take place just ahead of Devcon and promises to be a pivotal moment for the convergence of artificial intelligence and Web3.
Interested readers can apply for free tickets here, and sign up for the hackathon here.
It's All Happening on LinkedIn
Did you know you can now receive Blockhead's juicy daily newsletters directly to your LinkedIn? Subscribe to our LinkedIn newsletters for the latest news and insights in the world of Web3!
There also might be the occasional discount code for the industry's hottest events, exclusively for subscribers. So be sure to sign up!