A UAE company whose business is crypto trading, mining or blockchain services pays the standard corporate tax: 0% on the first AED 375,000 of taxable income and 9% above it (Federal Decree-Law No. 47 of 2022, Article 8). What differs for crypto is classification — company versus natural person, business versus personal investment — and, since Cabinet Decision No. 100 of 2024, the VAT treatment of the tokens themselves.
Company or natural person
- A UAE company (including a free zone entity) is taxed like any other business: registration within three months of incorporation for companies set up on or after 1 March 2024, and a return nine months after financial year-end.
- A natural person conducting a business or business activity enters corporate tax once total turnover from that activity exceeds AED 1,000,000 in a Gregorian year (Cabinet Decision No. 49 of 2023), registering by 31 March of the following year. Personal investment activities are excluded from corporate tax unless they require a licence or amount to a business.
What counts as taxable income
- Trading gains on tokens held as trading inventory are business income, measured in AED at fair value on the transaction date.
- Mining and staking rewards received through a business are taxable when received.
- Tokens held by a company as capital assets are not taxed while held; the gain on disposal (proceeds less cost) is taxable — there is no crypto-specific carve-out at company level, though the participation exemption can apply to qualifying shareholdings, not to tokens.
- Non-monetary consideration is valued in AED.
Deductions
Expenses incurred wholly and exclusively for the business remain deductible (Article 32): hardware depreciation for mining rigs, exchange and trading fees, electricity, and platform development costs. The cost of tokens held as capital assets is recovered through the disposal calculation, not as an expense.
Free zone route: check before assuming 0%
A free zone crypto business only keeps the 0% Qualifying Free Zone Person rate if all five QFZP conditions hold and its revenue is qualifying income. Qualifying activities are defined in Cabinet Decision No. 55 of 2023 — verify each revenue line against that list before assuming 0%, because crypto trading revenue is not automatically on it.
| Activity | Corporate tax (2026) | VAT (2026) |
|---|---|---|
| Token trading by a UAE company | 0% / 9% bands | Transfer and conversion exempt |
| Custody, wallet and management services | 0% / 9% bands | Exempt from 15 November 2024; 5% where an explicit fee is charged |
| Blockchain development services | 0% / 9% bands | 5% |
| Tokens held as a capital asset | Taxed on disposal gain | Exempt on disposal |
VAT on tokens
Cabinet Decision No. 100 of 2024 made the transfer of ownership and conversion of virtual assets VAT-exempt, retroactive to 1 January 2018, and exempted keeping, managing and enabling control of virtual assets from 15 November 2024 — while services charged for an explicit fee stay standard-rated. Exemption is not zero-rating: input VAT on platform and compliance costs linked to exempt supplies is not recoverable.
FAQ
Do I pay corporate tax on crypto I bought and still hold? No — corporate tax bites on income and gains; tokens held as capital assets are taxed when they are disposed of at a gain.
Is there a special corporate tax rate for crypto companies? No — the standard 0% and 9% bands apply; classification and evidence, not the rate, are where crypto businesses get it wrong.
When does corporate tax hit an individual trading crypto? When business turnover exceeds AED 1 million in a Gregorian year, with registration due by 31 March of the following year.
Finanshels provides bookkeeping services and audit services for crypto and blockchain companies — see also bookkeeping for crypto and blockchain companies, AML compliance for crypto and blockchain companies, how to qualify as a Qualifying Free Zone Person and corporate tax for content creators and influencers.
Reviewed by Gautam Sanoj, Senior Tax Advisor at Finanshels. Last reviewed 21 September 2026. Rules reflect Federal Decree-Law No. 47 of 2022, Cabinet Decision No. 49 of 2023 and FTA guidance as of that date; confirm your specific facts before acting.
