UAE to Implement Enhanced Common Reporting Standard (CRS 2.0) by 2027

The UAE Ministry of Finance has announced its adoption of the upgraded Common Reporting Standard, known as CRS 2.0, with implementation targeted for the 2027 reporting year. The move follows the UAE’s signing of the Addendum to the Multilateral Competent Authority Agreement (MCAA) on 11 August 2025, reinforcing the country’s commitment to global tax transparency and OECD standards.

Key Highlights

• Broader reporting scope: CRS 2.0 introduces expanded reporting obligations and new data elements for annual submissions.

• Inclusion of digital assets: Crypto-assets, Central Bank Digital Currencies (CBDCs), and specified e-money products are brought into scope through expanded definitions of depository accounts, investment entities, and financial assets.

• Stronger due diligence: Enhanced requirements for verifying tax residency, identifying controlling persons, and relying on government verification services.

• Updated definitions: Terms such as “Depository Institution,” “Depository Account,” “Investment Entity,” and “Financial Asset” are clarified and expanded.

Why it matters

CRS 2.0 will significantly widen the number of UAE businesses subject to reporting, increase compliance complexity, and require upgrades to IT systems and onboarding processes. Financial institutions and newly in-scope entities will face greater regulatory scrutiny as digital financial products become mainstream.

Next steps for UAE businesses

• Conduct a gap or impact assessment to determine CRS 2.0 obligations.

• Review and enhance technology, data management, and due diligence systems.

• Prepare a 2026 implementation plan, including updated governance, onboarding, and monitoring controls.

The UAE’s adoption of CRS 2.0 marks a major shift in aligning with global tax transparency standards and preparing for the evolving digital financial landscape.