The unemployment rate in Organisation for Economic Co-operation and Development (OECD) countries declined to 6.5 per cent in March from 6.6 per cent in February, as the global economic outlook improved amid the vaccination drive.
Overall, 42.65 million people remained unemployed in the OECD, which includes countries in the eurozone as well as the US, Australia, New Zealand, Japan, South Korea, the UK, Mexico and Canada, among others.
The jobless rate remained 1.2 per cent above the rate recorded in February last year, before the pandemic affected the labour market.
“In March, a marginal decline of the unemployment rate was also observed in the euro area – to 8.1 per cent, from 8.2 per cent in February 2021 – where the largest falls were registered in Finland to 7.7 per cent, Lithuania to 8.9 per cent, Portugal to 6.5 per cent and Spain to 15.3 per cent,” the OECD said.
In April, the International Monetary Fund raised its global economic forecast for the second time this year, thanks to faster-than-expected Covid-19 vaccination programmes and fiscal and monetary support provided by governments and central banks.
The global economy is now set to grow by 6 per cent this year, compared with a previous forecast of 5.5 per cent, the Washington-based lender said in its latest World Economic Outlook. However, it warned policymakers about an uneven recovery as richer countries rebound faster from the crisis.
The more positive outlook comes after the start of the coronavirus pandemic disrupted global trade and pummelled air travel across the world.
The unemployment rate also fell in most countries outside Europe in March, dropping to 7.5 per cent in Canada, 12.8 per cent in Colombia, 2.6 per cent in Japan, 5.6 per cent in Australia and 6 per cent in the US.
However, the jobless rose to 5.4 per cent in Israel, despite its rapid vaccination roll-out, and more recent data indicates that unemployment is also set to rise in April in Canada and the US, increasing to 8.1 per cent and 6.1 per cent respectively.
The OECD’s youth unemployment rate also decreased further in March, falling to 13.3 per cent for 15 to 24 year olds from 13.6 per cent in February. However, that is still 2 per cent above the pre-pandemic level recorded in February last year.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Zayed Sustainability Prize
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
