In February 2026, the UAE government recognized Dubai's VARA as a "Competent Authority" under the Corporate Tax law.
What Happened?
The UAE Ministry of Finance issued Ministerial Decision No. 336 of 2025 on February 10, 2026. This adds VARA to the official list of "competent authorities".
A "competent authority" is a government body that oversees specific financial activities. Until now, this list included the Central Bank, DFSA, and ADGM. VARA is now on that list.
What This Means for Crypto Businesses
This links Dubai's virtual asset rules with the UAE's federal tax system.
The key benefit: it helps businesses qualify for the 0% corporate tax rate on certain income.
VARA is now the recognized authority for:
- Fund management services
- Wealth and investment management services
If VARA licenses you for these services, your income may now get the 0% corporate tax rate.
Why It Matters
- Clarity: No more confusion about how tax law applies to virtual assets. VARA-licensed activities are now recognized at the federal level.
- UAE's Position: This supports the UAE's goal to be a global hub for financial services. It shows the country welcomes digital asset businesses.
- Investor Confidence: It proves the UAE's financial system is modern and aligned with new technologies.
VARA's designation is a big step forward. Virtual assets are now mainstream in the UAE economy. For VARA-licensed firms, it offers a clear path to the 0% tax rate for qualifying income.
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