In a statement, the Federal Tax Administration (FTA) said the amendments, adopted in accordance with Cabinet Resolution No. 100 of 2024, aim to simplify VAT rules, encourage investment and bring the system in line with international standards.
“The elimination of the 5% value added tax is expected to benefit virtual asset and investment fund companies, strengthening the UAE’s position as a global financial center,” the FTA commented.
In addition, according to a statement from the tax department, the regulator is considering the possibility of refunding previously paid value added tax on cryptocurrency transactions, starting from January 1, 2018.
In August, investment company Green Acorn, Abu Dhabi cryptocurrency conglomerate Phoenix Group and stablecoin issuer USDT Tether announced their intention to launch a new stablecoin pegged to the dirham outside the UAE.
Source: Bits
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