By supporting the financial services sector through targeted exemptions, the UAE continues to build on its strategy of becoming a top-tier financial hub. The recent amendments to the UAE’s VAT Executive Regulations represent a significant step forward in aligning the country’s tax regime with the evolving global business landscape.
Among the most impactful updates is the introduction of specific provisions for virtual assets. This change is particularly significant given the rapid growth of digital assets such as cryptocurrencies, NFTs, and smart contracts. The new rules also allow businesses to apply for a fixed apportionment recovery rate based on the previous year’s figures, subject to approval by the Federal Tax Authority (FTA).
