CMC News

#UAE Launches #CryptoTax Reporting Rules Ahead of 2027 Deadline

The United Arab Emirates has committed to implementing the Organization for Economic Cooperation and Development's Crypto-Asset Reporting Framework. Tax authorities will begin sharing cryptocurrency transaction data internationally starting in 2028.

The Ministry of Finance signed the Multilateral Competent Authority Agreement on Saturday. This framework requires exchanges, brokers, and wallet providers to report customer transaction details including purchases, sales, and transfers.

An eight-week public consultation launched Sept. 15 to gather industry feedback before final rule implementation. Advisory firms, custodians, traders, and exchange platforms can submit recommendations through Nov. 8.

The agreement aligns the Emirates with 50 other jurisdictions committed to automatic cryptocurrency tax information sharing. Countries including Australia, the Netherlands, and New Zealand have made similar commitments to the OECD framework.

"The framework establishes a mechanism for the automatic exchange of tax-related information on crypto-asset activities," the Ministry stated. This ensures transparency while providing regulatory certainty for digital asset businesses operating in the region. #Regulation

Industry experts view the development positively for long-term market stability. ChaiDEX co-founder Nitesh Mishra noted the agreement "brings greater legal clarity and certainty to crypto activities in the UAE."

The move follows Dubai's 2024 decision to exempt #cryptocurrency transactions from value-added tax. Clear regulatory guidelines for Web3 companies have positioned the Emirates as a major digital asset hub.

South Korea finalized similar CARF implementation agreements in early September. The country's National Tax Service will collaborate with local exchanges to automatically share tax information with participating jurisdictions. #TaxCompliance