Tulpar Tax CEO Advises Crypto Investors Ahead of UAE CARF Rollout

Ezat Alnajm, CEO of Tulpar Global Taxation, stated in an interview with Hubbis that digital asset holders must prepare for tighter compliance as the UAE rolls out the international Crypto-Asset Reporting Framework (CARF). Implementation in the UAE will take effect on 1 January 2027, with the first automatic exchanges of tax information scheduled for 2028 covering the 2027 calendar year. Under the framework, reporting crypto-asset service providers will gather specified client and transactional data to report annually to the UAE Ministry of Finance.

Alnajm cautioned wealth managers and investors against assuming that obtaining UAE tax residence eliminates tax liability globally. He noted that home tax authorities may still maintain claims over income depending on individual circumstances, requiring investors to evaluate their tax exposure across all relevant jurisdictions rather than relying solely on UAE status.

Regarding domestic UAE tax rules, Alnajm pointed out that the classification of crypto activity dictates its treatment. While qualifying personal crypto investment income remains exempt from corporate tax for natural persons, commercial operations and businesses face corporate taxation if annual turnover exceeds AED 1 million. Under UAE corporate tax bands, taxable income up to AED 375,000 is taxed at 0%, with a 9% rate applied to profits exceeding that threshold.

Alnajm also highlighted operational friction where cryptocurrency transfers interact with conventional banking rails, particularly in peer-to-peer trades and stablecoin settlements involving USDT and USDC. He advised crypto investors to treat digital wallets with the same record-keeping discipline as bank accounts, preserving contracts, wallet ledgers, and counterpart records to verify the origin and legitimacy of funds.