The United Arab Emirates (VAE) have confirmed that from 2027 they will automatically exchange tax data on crypto transactions with international authorities. The country thus agrees with a worldwide reporting system of the Organization for Economic Cooperation and Development (OECD).
International agreement for crypto taxes
The agreement is intended to prevent tax evasion and to create more transparency in the crypto sector. Crypto companies in the VAE are required to report data from 2027, which are then shared with tax authorities in other countries.
According to the Ministry of Finance, this system ensures “certainty and clarity for the sector”, while it follows international standards for tax transparency.
Public consultation started
To coordinate the rules with practice, a public consultation of eight weeks has started, which runs until November 8. Companies and stakeholders can provide feedback, so that the final regulations become effective and workable.
VAE strengthen position as a crypto-hub
The Emirates have been using a leading role within the cryptomarket for some time. For example, crypto transactions have been exempt from VAT since 2024 and Dubai uses clear guidelines for web3 companies. With the new agreements, the VAE wants to increase the confidence of international investors.
Positive reactions from the sector
Industry experts see the step as an important progress, including Niteshra and Benjamin Young. They say the following:
- Nitesh mishra (Chaidex) states that the agreements offer “more clarity and safety” for investors.
- Benjamin Young (Aston VIP) calls the decision “a reinforcement of the credibility of the UAE”, although he expects companies to be confronted with stricter reporting obligations.
With the introduction of automatic tax reports, the VAE will join the international trend for more openness in the cryptomarket. The decision underlines the ambition of the country to grow into a worldwide center for digital assets.
Source: https://newsbit.nl/verenigde-arabische-emiraten-gaan-belastinggegevens-over-crypto-wereldwijd-delen/
