Philips to focus on health care after divesting audio and video business

Philips is looking to the booming healthcare sector of the Middle East as it withdraws from the audio and video market.

As the Dutch electronics giant reported that fourth-quarter earnings before interest, taxes, amortisation and one-time items rose 50 per cent to €875 million (Dh4.32 billion) yesterday, it revealed plans to focus on its profitable healthcare business, in which it sells scanners, cardiographs, ultrasound machines and home sleep therapy devices.

Much of that was on display at the Arab Health convention in Dubai yesterday.

“Growth in China seems to be slowing down a bit; the United States just postponed a fiscal cliff; Europe has faced a euro crisis, so we need to focus on the ongoing economic activity in Middle East and Turkey,” said Ronald de Jong, the chief market leader and a member of the executive committee at Royal Philips Electronics. “We expect to see healthy growth.”

The company said it agreed to sell its audio and video unit to Japan’s Funai Electric for €150m. Home healthcare solutions were a major contributor to earnings last year.

A home blood monitoring device for use during chemotherapy that works much like the finger-prick system to check glucose levels in the blood is being planned.

The new technology is under research in the United Kingdom, and Philips expects to launch it in the UK market late next year. It will check the count of white blood cells, which are also killed during chemotherapy besides cancer cells.

The device would allow oncologists to remotely monitor patients, Philips claims.

“We can help reduce demand by early detection and prevention, and we are working on bringing care from hospital to home,” said Mr de Jong.

ssahoo@thenational.ae

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

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Red flags

Promises of high, fixed or 'guaranteed' returns.
Unregulated structured products or complex investments often used to bypass traditional safeguards.
Lack of clear information, vague language, no access to audited financials.
Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
Hard-selling tactics - creating urgency, offering 'exclusive' deals.

Courtesy: Carol Glynn, founder of Conscious Finance Coaching

'Top Gun: Maverick'

Rating: 4/5

Directed by: Joseph Kosinski

Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris

Philips to focus on health care after divesting audio and video business

Philips is looking to the booming healthcare sector of the Middle East as it withdraws from the audio and video market.

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