Introduction
The United Arab Emirates (“UAE”) has significantly enhanced its legislative framework for the exchange of information for tax purposes through the issuance of Cabinet Resolution No. 209 of 2025. This instrument marks a substantive shift in the UAE’s approach to tax transparency and international cooperation, replacing Cabinet Resolution No. 17 of 2012 with a comprehensive and operational Exchange of Information (“EOI”) framework.
Under Article 3(1) of Cabinet Resolution No. 209 of 2025, the Ministry of Finance is expressly authorised, for the purposes of compliance with international treaties and agreements, to request and collect information and documentation, either directly or through government entities or regulatory authorities, and to exchange such information with competent foreign authorities upon request, subject to the limits prescribed under applicable international agreements. This expanded mandate reflects the UAE’s continued alignment with OECD standards, including Exchange of Information upon Request (“EOIR”), enhanced beneficial ownership transparency, and the closer integration of tax, regulatory, and anti-money laundering compliance frameworks.
Cabinet Resolution No. 209 of 2025 shall be published in the Official Gazette and shall enter into force thirty (30) days from the date of publication, 30 January 2026, providing regulated persons and entities with a defined timeline to prepare for compliance.
Historical Context: Cabinet Resolution No. 17 of 2012
Cabinet Resolution No. 17 of 2012 authorised the Ministry of Finance to collect and exchange information in fulfilment of the UAE’s obligations under international tax treaties. While effective as an enabling instrument, it did not impose direct compliance obligations on taxpayers or regulated persons, nor did it introduce enforcement mechanisms or penalties.
Cabinet Resolution No. 209 of 2025 represents a progressive step forward. It introduces clearly defined statutory obligations, detailed compliance requirements, and enforceable sanctions, reflecting the UAE’s progression into a mature and internationally aligned tax transparency jurisdiction.
Scope of Application
Government entities, regulatory authorities, individuals, and legal arrangements are obligated to timely provide the Ministry of Finance with any requested information or documentation and to fully cooperate in the implementation of the EOI framework and compliance with the Resolution. In this context, the following persons are expressly required to comply with the EOI framework and to provide any information or assistance as may be requested:
- Licensed Natural persons;
- Legal persons established, registered, or licensed in the UAE, including free zone entities;
- Legal arrangements registered, licensed, or administered in the UAE, including those in free zones;
- Persons with permanent establishments in the UAE, including free zones.
The express inclusion of free zone entities and licensed natural persons removes any ambiguity as to the applicability of the EOI regime across different legal and regulatory structures.
It is interesting to note that certain key terms under Cabinet Resolution No. 209 of 2025, including “Person” and “Free Zones”, are defined independently from their corresponding definitions under the UAE Corporate Tax Law.
As a result, the scope of persons and entities subject to EOI obligations does not necessarily align with Corporate Tax classification, tax residency status, or free zone tax treatment. In particular, entities or individuals that may benefit from specific Corporate Tax positions, such as Free Zone for Corporate Tax purposes, incentives or exemptions, may nevertheless fall fully within the scope of the EOI framework.
This distinction underscores that the Exchange of Information regime operates as a standalone transparency and compliance framework, separate from the assessment of Corporate Tax liability, tax rates, or exemptions. Accordingly, Corporate Tax positioning should not be relied upon as an indicator of EOI obligations.
Information and Record-Keeping Obligations
Cabinet Resolution No. 209 of 2025 introduces detailed and prescriptive record-keeping and disclosure requirements.
Required Information
Persons and entities within scope are required to retain and periodically update:
- Ownership and identity information, including beneficial ownership and ownership chains;
- Banking information, including account holder details and transaction records;
- Accounting records, including invoices, contracts, correspondence, ledgers, and financial statements;
- Information on net assets, including movable and immovable property, liabilities, revenues, and income.
Licensed banks are subject to enhanced obligations in respect of banking and ownership information, while licensed natural persons must maintain accounting and asset records relating to their commercial activities.
Retention Period
Information must generally be retained for a minimum period of five (5) years, including following the liquidation, deregistration, or cessation of an entity or legal arrangement. Responsibility for compliance extends to managers, directors, liquidators, trustees, and other persons responsible for administration or dissolution. By contrast, the UAE Corporate Tax regime mandates a longer retention period of seven (7) years from the end of the relevant tax period, applying to both taxable and exempt persons.
Corporate Tax record-keeping encompasses financial statements, accounting records, invoices, contracts, and any supporting documentation required to substantiate tax filings or exemptions, with extended retention periods possible during audits or disputes. While the EOI framework emphasizes information sharing and transparency, the Corporate Tax requirements focus on verifying tax liabilities and exemption claims.
Powers of the Authorities
The Resolution grants broad powers to the Ministry of Finance and relevant regulatory authorities, including the authority to:
- Request information directly or through other government entities;
- Verify the accuracy, completeness, and currency of information;
- Conduct inspections and audits where violations are suspected;
- Coordinate enforcement measures across federal and local authorities.
Information may be exchanged with foreign competent authorities strictly upon request and within the limits prescribed by applicable international treaties, subject to public order and national security safeguards.
Grievance Process
Any individual subject to an administrative penalty under Cabinet Resolution No. 209 of 2025 may submit a grievance to the relevant regulatory authority within 30 working days of receiving the penalty notice. The authority is required to decide on the grievance within 30 working days, and failure to respond within this period is considered a rejection. While the grievance decision is final, the individual may still challenge it in court within 60 days of notification or after the grievance response period has expired.
Enforcement and Administrative Penalties
For the first time, the UAE’s EOI framework includes express administrative penalties for non-compliance. These include:
- AED 20,000 for failure to retain information or to provide it within specified timeframes;
- AED 60,000 for providing inaccurate or incorrect information;
- AED 100,000 for concealing, destroying, or tampering with records.
Repeat violations within a twelve-month period may result in doubled fines. In addition, regulatory authorities may impose supplementary measures, including the suspension, non-renewal, or cancellation of licences and registrations.
Role of Ministerial Resolution No. 134 of 2021
Ministerial Resolution No. 134 of 2021 in the UAE establishes the framework for implementing the Automatic Exchange of Information (AEOI) under the Common Reporting Standard (CRS). It requires financial institutions to identify and report certain financial accounts, maintain records, and perform due diligence, with reports submitted to the Federal Tax Authority for exchange with other jurisdictions. The resolution defines the roles of reporting entities, sets compliance requirements, and empowers authorities to audit and enforce penalties for violations.
Confidentiality and Legal Professional Privilege
The framework preserves confidentiality by limiting disclosure to what is permitted under applicable international treaties and UAE law. Importantly, information subject to legal professional privilege, where provided for the purpose of legal advice or representation in judicial or administrative proceedings, remains protected.
Practical Implications
The enhanced EOI framework has material implications for businesses and individuals operating in or through the UAE.
Affected parties should:
- Review and align beneficial ownership and corporate governance arrangements;
- Strengthen accounting and document retention systems;
- Ensure required information is accessible within the UAE;
- Prepare for regulatory inspections and cross-border information requests.
EOI compliance should now be treated as a core regulatory obligation, alongside Corporate Tax, AML, and UBO requirements.
Conclusion
Cabinet Resolution No. 209 of 2025, marks a significant advancement in the UAE’s tax transparency framework. The UAE has moved to a robust, enforceable, and internationally aligned Exchange of Information regime, characterised by clear obligations, defined enforcement powers, and meaningful penalties. For businesses, free zone entities, and individuals alike, proactive compliance is no longer optional, it is essential.
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