A. The Supply of the financial Services specified in Paragraph B of this Article shall be exempt from Tax, except where the Consideration for the Service is expressly determined as a fee, commission or commercial discount.
B. Financial Services shall mean Services related to cash transactions, including, but not limited to the following transactions:
1. Depositing money in current accounts, savings accounts or deposits.
2. Granting and transferring loans, borrowings and credit.
3. The issue or cancellation of cheques, debit cards and credit cards.
4. The issue, transfer, receipt or any dealing with money or any financial bond or any banknotes or money orders.
5. The Supply or issue of financial derivatives or deferred contracts or any necessary arrangements for them.
6. The Supply or issue of shares, stocks, bonds and securities related to them.
7. Transactions related to ATMs, excluding the Supply, installation or maintenance of these machines or the Supply of a programme used for their operation.
8. The conversion of currency either through the exchange of banknotes or any related matters.
9. The provision or transfer of financial instruments, sukuks, swaps, options, or any futures contracts.
10. The issue, allotment, renewal, amendment, rent or transfer of ownership of a debt or equity security (whether listed or unlisted), credit contract or the like.
11. The provision, or transfer of ownership of a life insurance or reinsurance contract.
12. The provision of insurance cover or annuities under any investment scheme,
13. The provision, acquisition, amendment or release of a guarantee, indemnity or security that relates to the performance of obligations arising under a cheque, credit security, debt security, or similar document.
14. Any Islamic financial product provided in accordance with legally approved contracts, which is similar to a conventional financial product in terms of the intended objective and materially achieve the same result.
15. Commissions for brokerage Services, or under a mudaraba or wakala contract.
C. The following financial Services shall be exempt regardless of the form of the Consideration payable for them:
1. The issue, allotment, or transfer of ownership of an equity security or debt security.
2. Executing life insurance and reinsurance contracts, and transferring ownership of them.
D. Services provided by investment funds shall be exempt from Tax where they relate to the issue of financial derivatives, or deferred contracts or issuing shares, stocks, bonds and equity securities related thereto and arrangements necessary for these activities.
E. Islamic financial products provided under a written contract which relate to a Supply of financing in accordance with the principles of Shari'ah and which simulate the intention and achieve effectively the same result as a non-Shari'ah compliant financial product shall be treated in a similar manner as the equivalent non- Shari'ah financial product for the purpose of applying the exemption for financial Services.
F. The provisions of this Article shall not contradict Clause 7 of the first paragraph of Article 53 of the Law concerning the Supply of Financial Services from a taxable Supplier resident in the Kingdom to a Customer who is not resident in the territory of the Implementing States benefiting from the Services outside the territory of the Implementing States.
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