By: Amr Adel
Dubai – Mubasher: Buying and selling transactions on the UAE’s stock exchanges will not be subject to the valued-added tax (VAT), the director general of the Federal Tax Authority (FTA) Khalid Al Bustani said Sunday.
However, the explicit fees imposed on investors will be subject to the VAT, which will be imposed in the UAE as of January 2018, Al Bustani told Mubasher.
The commission deducted from brokerages’ buying and selling transactions will be subject to a 5% VAT, the FTA’s director general added.
Earlier in October, Al Bustani stated that brokerages, whose annual revenues amount to or exceed AED 375,000 are required to register for the VAT.
The UAE expects between AED 10 billion to AED 12 billion ($2.7 billion to $3.2 billion) in revenue in the first year of levying the VAT.
Most goods and services in the UAE will be subject to 5% VAT as of the beginning of 2018.
Translated by: Muhammed AbdulWakeel
