UAE Announces 2027 Rollout of Automatic Crypto Tax Reporting System – What Does it Mean for Investors?

The United Arab Emirates (UAE) has announced that it will roll out an automatic crypto tax reporting system by 2027 and has launched an industry consultation to finalize implementation details before official ￰0￱ an official government release , the UAE Ministry of Finance revealed that it has signed the Multilateral Competent Authority Agreement on the Automatic Exchange of Information under the Crypto-Asset Reporting Framework (CARF) , following its announcement last November of its intention to implement the ￰1￱ implementation in the UAE is now scheduled to go live in 2027, with the first tax information reporting expected in 2028.) September 16, 2025 UAE-based exchanges, custodians, and wallet providers will be required to collect and report customer data, similar to how banks and brokers report under FATCA/CRS.

Crypto investors should expect stricter KYC and AML processes, as platforms prepare to comply with international reporting ￰2￱ investors may view this as a positive development, as it reduces reputational risk and regulatory uncertainty. However, privacy-focused investors who rely on crypto for tax avoidance or secrecy may feel uneasy as cross-border reporting reduces ￰3￱ could be higher compliance costs, especially for traders using multiple wallets, custodians , or offshore entities. Non-compliant investors might face penalties, back taxes, or investigations in their home countries as the tax avoidance window closes by 2027–2028. UAE’s Local Tax Position Remains Unchanged It’s worth noting that the UAE’s signing the CARF does not mean it will start taxing crypto gains ￰4￱ it does mean is that if you are a foreigner living in the UAE but remain tax-resident elsewhere, your home country can now receive details of your UAE crypto activity and tax you according to its ￰5￱ UAE nationals and residents who are only tax-resident in the UAE, crypto will still be exempt from income tax, unless a new domestic law is introduced ￰6￱ in the UAE, there’s no personal income tax on individuals, whether from salary, business profits, or crypto gains.

Similarly, the 5% VAT in the country only applies to goods and services, but not to investment gains (like profits from selling crypto). So until now, crypto trading by individuals has not been taxed in the UAE. However, a corporate tax of 9% was introduced in June 2023 , but it mainly applies to companies with profits exceeding AED 375,000. Individuals trading crypto on their own are not subject to corporate ￰7￱ Should Worry Most About the Crypto Tax Reporting System?

The first category includes expats in the UAE who are still tax residents in their home countries. Also, investors who have been under-reporting or not reporting crypto gains back home and high-net-worth individuals who moved assets into UAE exchanges for “privacy.” This means if you’re from the US, EU, UK, Canada, Australia, Japan, South Korea, or India, the new CARF agreement means your home tax authority will soon have a clear view of your UAE crypto ￰8￱ France and Italy, governments impose taxes to the tune of almost 50% (!) of ￰9￱ the US, that’s barely 30%. Not a fun experience for productive individuals and companies in Europe: ￰10￱ — Alf (@MacroAlf) February 17, 2025 But suppose you’re from countries like Saudi Arabia, Qatar, Singapore, or Switzerland, or you’re a UAE national/resident who is only tied to the ￰11￱ that case, there’s little change since your jurisdiction doesn’t currently tax crypto gains.