No VAT on sale and purchase of shares in UAE

(MENAFN- Khaleej Times) Value-added tax (VAT) will not be applicable on the sale and purchase of share transactions conducted by investors in UAE stock markets, said a senior government official.

Khalid Al Bustani, director-general, Federal Tax Authority, pointed out that there would be no tax on profit margins as well.

On Tuesday, Dubai Financial Market saw 451.2 million shares changing hands worth Dh525.2 million. Abu Dhabi Securities Exchange witnessed 62.8 million shares trading worth Dh100.6 million.

As part of the wider Gulf Cooperation Council agreement, the UAE has announced to implement 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.

Younis Haji Al Khoori, undersecretary, Ministry of Finance, earlier said that the ministry is committed to working with the highest levels of transparency and disclosure, and will publish all information related to VAT and taxable supplies once the executive regulation is issued in Official Gazette and published on the ministry's website.

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