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The UAE has taken a decisive step in strengthening international tax transparency with the issuance of Cabinet Decision No. 209 of 2025, which introduces a unified legal framework for the Exchange of Information upon Request for tax purposes. For businesses operating in the UAE, this decision clarifies how and when business, ownership, and financial information may be shared with foreign tax authorities under international agreements, reinforcing certainty while raising expectations around record keeping and compliance.
What Cabinet Decision No. 209 of 2025 introduces
The new Decision replaces the previous Cabinet Resolution No. 17 of 2012 and formally aligns the UAE with the standards set by the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes. It establishes a clear legal basis for how information requests from foreign tax authorities are received, assessed, processed, and responded to by UAE authorities, ensuring a consistent and structured approach across federal and local entities.
Types of information that may be exchanged
Under the framework, the Ministry of Finance is empowered to request, collect, verify, and exchange a broad range of information strictly within the limits of applicable international agreements. This includes ownership and beneficial ownership details, banking and financial records, accounting and bookkeeping records, and information relating to legal persons and legal arrangements. The exchange is not automatic and applies only where a valid request is made in line with treaty obligations and public order safeguards.
Who this affects in practice
The rules apply to businesses, individuals, and legal arrangements operating or established in the UAE that fall within the scope of an overseas request. This includes companies with international operations, shareholders or controllers resident abroad, structures involving trusts or foundations, and entities with cross border financial activity. Even purely domestic businesses should be aware of the framework if they have foreign owners, investors, or counterparties.
Alignment with international tax cooperation standards
The Decision builds on the UAE’s long standing participation in international tax cooperation. The UAE has been a member of the OECD Global Forum since 2010, became a signatory to the Convention on Mutual Administrative Assistance in Tax Matters in 2017, and maintains more than 140 bilateral double taxation agreements. Cabinet Decision No. 209 of 2025 ensures that information requests under these agreements are handled consistently and transparently.
How the process works and enforcement powers
The framework clearly defines the roles of the Ministry of Finance and other competent authorities, along with the administrative measures available to obtain information. Authorities may request data from relevant persons, carry out inspections, and review records where necessary to verify accuracy. The Decision also sets out grievance and procedural safeguards, balancing international cooperation with due process and public order considerations.
Relationship with other transparency initiatives
This framework operates alongside other global transparency mechanisms, such as the Common Reporting Standard for automatic exchange of financial account information. However, it is distinct in that it focuses on request based information sharing rather than routine automatic reporting. Businesses should view it as part of a broader global environment where transparency expectations are increasing across all tax and regulatory regimes.
What businesses should do now
For UAE businesses, the key takeaway is preparation rather than alarm. Companies should ensure that ownership structures, beneficial ownership registers, accounting records, and financial documentation are accurate, complete, and readily accessible. Clear internal processes for record retention and governance are essential, as information may be requested and reviewed within defined timelines.
How Danix Consultancy can support your compliance
Danix Consultancy helps SMEs and growing businesses in the UAE strengthen their accounting, record keeping, and governance frameworks so they are ready for evolving tax transparency requirements. We support clients in reviewing ownership structures, maintaining compliant records, and aligning internal processes with UAE tax and regulatory expectations, allowing you to operate with confidence in an increasingly transparent global tax environment.
Need clarity on your record keeping or ownership compliance? Speak to Danix Consultancy for practical guidance tailored to your business and cross border exposure.
