Today, the Ministry of Finance announced the approval of the Council of Ministers, by its Resolution No. (100) of 2024, to amend some provisions of the executive regulations of Federal Decree Law No. (8) of 2017 regarding value-added tax.
The Ministry confirmed, in a press statement, that these amendments come within the framework of its keenness to enhance transparency in the tax system and ensure full compliance with the tax legislation applied in the UAE by those subject to tax, and they reflect the Ministry’s continuous efforts to improve the tax environment in the country, in a way that achieves a balance between collecting… Tax revenues, enhancing the investment climate and attracting more companies and investors to the country.
Younis Haji Al-Khouri, Undersecretary of the Ministry of Finance, said: “We emphasize the Ministry’s commitment to coordinating with the concerned parties from the public and private sectors, and working to update the regulations in a way that enhances the business climate in the country, and we look forward to these changes contributing to reducing any misunderstanding or incorrect application of the law, to In addition to facilitating procedures for those subject to tax in accordance with the best international standards to improve the quality of life of community members.”
In light of the current economic transformations, the Ministry of Finance has implemented tax plans and programs in line with international best practices in this regard, in order to address the challenges associated with economic developments and enhance the ability to support the business sector and achieve economic growth. Accordingly, amendments were made to some articles in the executive regulations of the Value Added Tax Law in conjunction with developments in application, market need, and stakeholder views on tax policies, in addition to aligning the provisions of the executive regulations with the amendments contained in the law.
The Cabinet decision issued to amend the executive regulations of Federal Decree Law No. (8) of 2017 regarding value-added tax includes important amendments, part of which aims to reconcile some provisions of the regulation with the amendments set forth in Federal Decree Law No. (18) of 2022 amending the Federal Decree Law. No. (8) of 2017 regarding value-added tax, while the other part of the amendments aims to activate the legislative policy of updating some provisions of the executive regulations.
The amendments include exempting investment fund management services from value-added tax to stimulate growth in the investment management and investment funds sector in the country and enhance its attractiveness as a leading investment center, and exempting specific services related to virtual assets from value-added tax within the framework of supporting innovation and advanced financial technology as a leading center for investment and virtual assets. .
It also includes the exception of in-kind donations between charitable and government agencies whose value does not exceed five million dirhams during a period of 12 months from the provisions of the legal supply, so that the donors can recover the value-added tax resulting from those in-kind donations, in accordance with the provisions of the value-added tax law, which is a step aimed at To reduce the burdens on these entities and enhance their societal role.
In addition, the amendments include enhancing tax compliance by granting the Federal Tax Authority the power to cancel tax registration in specific cases, in order to maintain the integrity of the tax system and enable efficient tax administration.
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