The UAE Abolishes Taxes On All Cryptocurrency Transactions

The United Arab Emirates (UAE) has abolished taxes on all cryptocurrency transactions.

The abolishment will take effect from November 15, 2024 onwards, and it applies to all transactions from as far back as January 1, 2018, meaning that any transaction from 2018 won’t be taxed. Also, for the first time, the tax doesn’t apply to digital assets, meaning all cryptocurrency transfers and conversions will be exempt from paying the 5% tax.

The Arabic version of the Federal Tax Authority’s update was made public on October 2, 2024, and the English translation was made public on October 4, 2024.

The UAE is working towards a more crypto-friendly approach towards digital asset transactions, whilst maintaining and enhancing regulations on crypto as a whole in their region. If they continue on this path, it will be interesting to see how big of an impact their regulations will have on the entire crypto industry, only time will tell.

Disclaimer: The information provided in this article is NOT financial advice.