Strengthening Global Tax Cooperation
The Ministry of Finance (MoF) has confirmed that the UAE has signed the Multilateral Competent Authority Agreement on the Automatic Exchange of Information under the OECD’s Crypto-Asset Reporting Framework (CARF). According to the MoF, CARF implementation in the UAE is scheduled to go-live in 2027 and the first exchanges of information are expected in 2028.
CARF introduces a structured mechanism for the automatic exchange of tax-related information on crypto-asset activities. Its adoption reflects the UAE’s commitment to align with global tax transparency standards while providing clarity and certainty to a rapidly developing sector.
Key aspects of the announcement
- Implementation scheduled to go‑live in 2027, with the first exchanges of information expected in 2028
- A public consultation from 15 September to 8 November 2025 invites custodians, intermediaries, exchanges, traders and advisory firms to share their views
- CARF reporting obligations are expected to complement the UAE’s existing corporate tax and virtual‑asset regulations
- Stakeholders are encouraged to consider governance, reporting and compliance frameworks in anticipation of these changes
Interplay with Corporate Tax and Virtual Asset Law
This development builds on recent reforms in the UAE’s financial landscape. Federal Decree‑Law No. 47 of 2022 on the Taxation of Corporations and Businesses (Corporate Tax Law) imposes corporate tax on the taxable income of businesses. Although the law does not explicitly refer to virtual assets, profits arising from virtual‑asset activities generally fall within the scope of business income and are therefore subject to corporate tax unless an exemption applies. CARF’s reporting obligations will enhance the government’s ability to monitor and assess taxable crypto activities ensuring compliance with domestic and international tax standards.
Dubai Law No. 4 of 2022 regulates virtual‑asset services in the Emirate and established the Dubai Virtual Assets Regulatory Authority (VARA). The law applies to virtual‑asset services across all zones of Dubai (except the Dubai International Financial Centre) and creates a public corporation with legal and administrative autonomy to license and supervise virtual‑asset service providers. In addition to VARA’s licensing regime, businesses engaged in virtual‑asset activities will need to comply with CARF reporting requirements to meet international tax‑information exchange standards.
For market participants, the convergence of CARF, corporate tax law and Dubai’s Virtual Assets Law underscores the need for integrated compliance systems covering KYC, transaction monitoring and data retention. Stakeholder engagement during the consultation phase will be critical to shaping rules that reflect market realities.
Get in Touch
For more information on this topic, please contact Suneer Kumar, Head of Corporate Practice at suneer@alsuwaidi.ae and Vida Grace Serrano, Corporate Senior Associate at Vida@alsuwaidi.ae or Mamdouh Tawfik Associate at m.tawfik@alsuwaidi.ae