CARF tax reporting roll-out looms as UAE signs-on

The United Arab Emirates (UAE) has officially signed the Multilateral Competent Authority Agreement on the Automatic Exchange of Information under the Crypto-Asset Reporting Framework (CARF). Developed by the Organisation for Economic Co-operation and Development (OECD), CARF is a global standard designed to combat tax evasion and improve transparency by enabling countries to automatically share information about crypto asset transactions.

Under the new framework, crypto companies operating in the UAE will need to comply with reporting requirements by 2027 with the first exchanges of information expected to begin in 2028.

In the 20 September announcement, the UAE Ministry of Finance stated that:

[t]he framework establishes a mechanism for the automatic exchange of tax-related information on crypto-asset activities, ensuring that the UAE provides certainty and clarity to the crypto-asset sector while upholding the principles of global tax transparency.

To support the rollout, the UAE has launched a public consultation on CARF implementation inviting stakeholders to submit feedback or seek clarification. The consultation is open until 8 November 2025 and aims to 'develop clear and effective regulatory rules informed by the insights of experts and stakeholders, and aligned with market needs'.

This move follows the UAE's earlier announcement in November 2024 of its intention to adopt CARF as part of broader financial reforms. Industry experts have welcomed the development, noting that it brings clarity for compliant investors and aligns the UAE with international tax standards.

What's next?

For offshore investors, such as those based in Australia, the framework means they must ensure their crypto holdings are properly reported in the country where they are tax resident. Tax authorities will be able to use CARF data to cross-check whether individuals are accurately reporting their crypto gains. For crypto businesses in the UAE, they will need to begin reviewing their systems, databases and the customer information they collect to prepare for their new reporting obligations.

This announcement complements the UAE's crypto-friendly initiatives such as the exemption of digital asset transactions from value-added tax. While the transition may involve short term compliance burdens, it ultimately strengthens the UAE's reputation as a trusted jurisdiction for legitimate crypto business and activities.

Australia carried out its own consultation on CARF implementation in late 2024. The details of Australia’s framework remain to be confirmed although reporting requirements are also expected to commence in 2026 with information exchange commencing in 2027 once those detailed have been finalised.

Written by Steven Pettigrove and Emma Assaf