Dear Valued Customer,

Thank you for banking with Bank of Sharjah PJSC. You may be aware that the UAE is implementing Value Added Tax ("VAT") at the standard rate of 5%, with effect from 1st January 2018. This will apply to most supplies of goods and services supplied from this date.

The UAE Ministry of Finance has some useful webpages dedicated to VAT, setting out how VAT will operate in the UAE. We suggest that you take a moment to consider how VAT might apply to you:

•  https://www.mof.gov.ae
•  https://tax.gov.ae

Application to our services:

As a VAT registered business, Bank of Sharjah PJSC is required to charge and collect VAT on certain financial services provided to our clients and pay it to the Federal Tax Authority. In view of this, the following points are being raised for your attention:

• Supply of financial products/services conducted in return for an explicit fee, charge, commission or similar shall be subject to VAT.
• Other financial services if remunerated by way of an implicit margin such as interest shall not be subject to VAT.
• The list of impacted fees and charges includes but is not limited to those mentioned in our published Fees & Rates.
• Where VAT is chargeable, we will debit your account for the VAT amount in the same way and at the same time as we debit your account for the underlying fee, charge or commission.
• Banks cannot waive the imposition of VAT payable in respect of the various fees and charges under the law.
• Transitional arrangements may apply for services which span 1 January 2018. Bank of Sharjah PJSC reserves the right to charge VAT to the client in respect of any services relating to 2018, even where payments have been received prior to 1 January 2018, where applicable under the provisions of VAT law.

Acceptance of the Addendum at the Appendix:

Your continued dealing with Bank of Sharjah PJSC will be taken as your acceptance of the addition of the Addendum, as set out at the Appendix, to our existing Agreement with you. Except as varied by the Addendum below, our existing Agreement(s) with you shall continue in full force and effect in all respects.

Tax Registration Number:

For clients who are registered for VAT, we request you to contact your relationship manager or branch with the following details:

We thank you for being our valued customer and assure you of our best services at all times.

Best Regards,

Bank of Sharjah PJSC