UAE makes crypto tax-free

No more VAT for transfer and conversion of virtual assets.

Author

Daniel Akpobare
October 07, 2024

GM Explorer,

Big changes are coming to UAE’s tax laws —crypto transactions are now exempt from VAT, exporters get a simplified process, and more.

Here’s what we got for you today:

  • 💃 UAE makes crypto tax-free!

  • 🗣️ Mark Cuban's controversial take on meme coins sparks backlash!

  • 🧱 Around The Block: Worldcoin massacres its investors, 84% in losses!

💃 UAE Makes Crypto Tax-Free!

The UAE’s Federal Tax Authority (FTA) is making big changes to VAT regulations, especially for those dealing with crypto.

Starting November 15, transfers and conversions of virtual assets like cryptocurrencies will be exempt from VAT for citizens and businesses.

Things are getting simpler for exporters, too.

The government has relaxed the documentation requirements for applying the zero VAT rate on goods exports.

Instead of demanding multiple layers of proof, exporters can now present one of several types of documentation, such as customs declarations, shipping certificates, or commercial evidence, to prove their exports.

But that’s not all!

Fund managers providing services to investment funds licensed in the UAE will now benefit from VAT exemptions.

This means that the management of fund operations, investments, and performance monitoring are all VAT-exempt.

Even the funds’ VAT recovery position is impacted by this exemption.

With all these changes, fund managers and businesses dealing with crypto must review whether their services qualify for the VAT exemption.

Additionally, those who have previously paid VAT on virtual asset transactions might need to file voluntary disclosures to correct their historic tax filings.

If you need more info, check out the UAE’s published amendments here!

Mark Cuban's Controversial Take on Meme Coins Sparks Backlash!

Mark Cuban recently stirred the crypto waters by branding most meme coins as "rug pulls" — scams waiting to happen.

In a Rug Radio podcast, he likened meme coin trading to a risky game of “musical chairs,” where investors gamble for profit without long-term value.

But get this — Cuban, known for his love of Dogecoin, made an exception for the original meme coin.

While he sees little real-world utility in most meme coins, he praises Dogecoin for its fun, community-driven nature and accepts it for his NBA team’s Dallas Mavericks merchandise purchases.

As expected, not everyone agrees with this hot take!

Abraham Naidoo, an advocate for Shiba Inu, argued that SHIB shouldn’t be lumped into the same category.

He pointed to ongoing projects like Shibarium and ShibaHUB, emphasizing that these projects elevate Shiba Inu beyond just a meme coin.

It’s also possible that Cuban’s comment about meme coins being rug pulls applies more to smaller-cap tokens, such as those launched on platforms like Pump.fun.

These tokens are often associated with pump-and-dump schemes and struggle to gain substantial traction.

So, do you agree with Cuban's take on meme coins, or do you think he’s just stirring the pot? 🤔

🧱 Around The Block

That's all we've got for you today.

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions.

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