Recognition of VARA as a "Competent Authority" for the purposes of applying the 0% UAE corporate tax rate
Tax Alert
16 February 2026
16 February 2026
The Ministry of Finance has announced on its official website the issuance of Cabinet Decision No. (336) of 2025, amending Ministerial Decision No. (229) of 2025 concerning Qualifying and Excluded Activities for the purposes of Federal Decree-Law No. (47) of 2022.
In accordance with the announcement, the Virtual Assets Regulatory Authority in Dubai (VARA) will be recognized as a “Competent Authority” (in addition to the Central Bank, DFSA in the DIFC, and FSRA in the ADGM). It means that a license from VARA will allow for the application of the preferential corporate tax rate (0%) when carrying out the following activities:
In accordance with the announcement, the Virtual Assets Regulatory Authority in Dubai (VARA) will be recognized as a “Competent Authority” (in addition to the Central Bank, DFSA in the DIFC, and FSRA in the ADGM). It means that a license from VARA will allow for the application of the preferential corporate tax rate (0%) when carrying out the following activities:
- Fund management servicesPortfolio and risk management, provision of discretionary and non-discretionary fund management services, and other services relating to the day-to-day management and operation of an investment fund by a fund manager.
- Wealth and investment management servicesProviding discretionary and non-discretionary investment management and advisory services, portfolio management and wealth and investment advisory services.
The benefit is available only to companies that carry out the above-mentioned activities under the supervision of the relevant competent authorities.
The Decision has not yet been published. However, it may be assumed that this expansion reflects the active development of, and growing interest in, the digital assets sector in the region (including crypto assets and NFTs), as well as the regulators’ intention to create a more favorable tax environment for market participants. This approach is consistent with the region’s broader strategy to attract technology-driven and investment projects, develop financial markets, and integrate new digital instruments into the existing regulatory framework.
The Decision has not yet been published. However, it may be assumed that this expansion reflects the active development of, and growing interest in, the digital assets sector in the region (including crypto assets and NFTs), as well as the regulators’ intention to create a more favorable tax environment for market participants. This approach is consistent with the region’s broader strategy to attract technology-driven and investment projects, develop financial markets, and integrate new digital instruments into the existing regulatory framework.
How BaOne can help:
- Analyze compliance with the conditions for applying the 0% corporate tax rate
- Analyze the tax implications of transactions involving digital assets
- Provide consulting services in the field of taxation, including assessing the company’s tax position and analyzing tax compliance issues
- Assist with matters related to the application of double tax treaties
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