According to Amac News: The UAE Finance Ministry said in a statement that it is amending some of the implementing provisions of the Federal Decree-Law No. 8 of 2017 on Value Added Tax (VAT).
The ministry stressed that the reforms demonstrate its continued commitment to increasing transparency in the overall and indirect tax regime, ensuring full compliance with UAE tax laws by taxpayers.
The ministry said the changes were part of ongoing efforts to reform the tax environment in the UAE, aimed at striking a balance between collecting tax revenue, strengthening the investment climate and attracting more jobs and investors to the country.
The reforms were designed in line with international best practices, taking into account the Gulf Cooperation Council’s Integrated Value Added Tax Agreement, past experiences, challenges facing the business community and stakeholder recommendations, the statement said.
The Ministry of Finance has introduced tax plans and programs with international best practices to address the challenges posed by these developments and strengthen support for the business sector and promote economic growth.
The Cabinet’s decision to amend the implementing provisions of Federal Decree No. 8 of 2017 on value-added tax makes significant changes.
Part of the amendment seeks to align some of the provisions of the regulations with those contained in Federal Decree No. 18 of 2022, which also amended Federal Law No. 8 of 2017.
These reforms include the exemption of investment fund management services from VAT to stimulate growth in the investment management sector and enhance the UAE’s attractiveness as a leading investment hub.
Moreover, some virtual asset-related services will be exempt from VAT as part of efforts to support innovation and advanced financial technology, further cementing the UAE as a prominent hub for virtual asset investment places.
The changes also exempt non-cash donations between charities and government organizations, worth a maximum of AED 5 million in a 12-month period, from the legal supply regulations.