The UAE is committed to implementing the updated standard for exchanging tax information “CRS 2.0”

The Ministry of Finance announced the UAE’s commitment to implementing the updated amendments to the Common Reporting Standard (CRS 2.0), issued by the Organization for Economic Co-operation and Development (OECD) within the global system for the automatic exchange of information for tax purposes.

The updated standard is scheduled to begin implementation in 2027, with the first information exchange process starting in 2028.

The Ministry stated, in a statement today, that this step reflects the strengthening of the UAE’s advanced position in various global competitiveness indicators, and confirms the excellence of the UAE’s financial system in transparency and its adoption of the highest standards of governance, which constitutes a major attraction for foreign investments to the UAE. It also embodies the practical approach followed by the UAE in aligning the date of implementing this standard “CRS 2.0” in conjunction with fulfilling the requirements for reporting tax information under the Crypto Assets Reporting Framework.

The updated standard “CRS 2.0” develops the existing framework under Federal Decree No. 48 of 2018 and Cabinet Resolution No. 93 of 2021, expanding its scope to include electronic money, digital currencies for central banks, and some activities related to encrypted assets. The standard also introduces additional requirements for auditing and reporting, to ensure that the growth of the digital assets sector and financial innovation does not affect global tax transparency.

Both the updated standard “CRS 2.0” and the Crypto Asset Reporting Framework “CARF” are a milestone in the UAE’s journey towards strengthening its commitment to the highest international standards for tax transparency, and expanding the scope of cooperation with international organizations such as the Organization for Economic Cooperation and Development and the global financial community, in a way that supports the UAE’s position as a leading financial center based on good governance and international compliance.