UAE Adopts OECD’s CARF Crypto Tax Reporting Framework 2027
UAE has signed the OECD’s multilateral competent authority agreement to adopt the Crypto-Asset Reporting Framework (CARF), reinforcing crypto tax reporting and aligning its digital asset regulations with global standards. Implementation begins in 2027, with the first automated exchanges of cross-border crypto tax data scheduled for 2028. To ensure smooth rollout, the Ministry of Finance opened a public consultation from September 15 to November 8, inviting feedback from exchanges, custodians, traders and advisory firms.
Adoption of CARF commits the UAE alongside more than 50 jurisdictions, including New Zealand, Australia and the Netherlands, to automatic crypto-asset data sharing. While the framework imposes new reporting obligations and compliance costs, the enhanced crypto tax reporting regime aims to curb tax evasion, deter illicit activity and strengthen investor confidence. Observers expect improved tax transparency will support long-term market growth and bring the UAE in line with other centers like Switzerland and South Korea advancing similar crypto tax measures.
Bullish
By adopting the OECD’s CARF, the UAE provides clearer rules for reporting cross-border crypto transactions, which typically enhances market transparency and reduces regulatory uncertainty. In the short term, market participants may face increased compliance costs and administrative burdens as exchanges and custodians adapt to new reporting requirements. However, the framework’s emphasis on automated data sharing is likely to curb tax evasion and illicit activities, boosting investor confidence. Over the long term, improved crypto tax reporting and alignment with global standards should attract institutional capital, support market liquidity and drive sustainable growth in the UAE’s digital asset sector.