A common question: "Are prediction-market profits taxed?" The general picture: in the UAE, individuals' profits are usually exempt, and in Saudi Arabia it ties to zakat and VAT depending on the nature of the activity.
This is an overview, not tax advice — consult a professional or the official authority for your case.
In the UAE, income tax is generally not withheld on individuals' trading profits. Since June 2023 a 9% corporate tax applies to company profits above AED 375,000 — i.e. it concerns business entities, not typically individual traders.
In Saudi Arabia there is no income tax on individuals' profits, but the matter can relate to zakat if the activity is deemed commercial, and to VAT, which applies to the commission rather than the trade value. Details depend on your situation and how your activity is classified.
Keep a record of your deposits, withdrawals, and trades from the funds and fees page. Clean records make any later review easier.
Tax rules change and vary by case and jurisdiction. This article is educational, not tax advice; consult a tax professional or the official authority (e.g. ZATCA in Saudi Arabia) to confirm your situation.
Whether in Saudi Arabia or the UAE, keep tidy records to ease any review:
Yes — trading predictions on PolySouq is legal and legitimate, and it is halal, not haram or gambling. That is because it has no riba and no leverage, the outcome is settled by a clear official source, your decision rests on information, analysis, and probability rather than pure chance, and your loss is capped at the contract cost and known in advance. These controls are what set it apart from maysir. For complete peace of mind you may consult a trusted scholar. Your capital remains at risk — trade only what you can afford to lose.
Income tax is generally not withheld on individuals' profits in the UAE; the 9% corporate tax concerns business entities with profits above AED 375,000. Consult a professional for your case.
There is no income tax on individuals' profits, but it can relate to zakat if the activity is commercial, and to VAT on the commission. Details depend on how your activity is classified.
No, it is an educational overview. Rules change — consult a tax professional or the official authority to confirm.
Disclaimer: Prediction markets are a legal and legitimate way to trade information about the outcomes of future events. However, trading carries risk and you may lose the full amount you trade — so only trade what you can afford to lose. This content is educational and is not financial or investment advice.