The week in money

Contactless payment offer with Mashreq

Mashreq has teamed up with UAE merchants to secure customers discounts on contactless payments. Tap n Go can be used by all Mashreq credit card customers, reducing transaction times from 45 seconds to eight seconds. For every Tap n Go transaction made in selected supermarkets, including Geant, Al Maya and Choitrams, Mashreq customers will either get 50 per cent off or 10 per cent off their bill, capped at Dh10 per bill, or free beverages.

Japan maintains negative interest rates

The Bank of Japan announced on Wednesday that it was maintaining the 0.1 per cent negative interest rate it charges on excess reserves it holds for banks to encourage them to lend more. It said it may cut the rate further. But it abandoned its base money target, instead opting for “yield curve control” under which it will buy long-term government bonds to keep 10-year bond yields are current levels of around 0 per cent.

RAKBank announced a new 60-second remittance on amounts up to Dh200,000 to 26 major banks in India through its service RAKMoneyTransfer. The fast transfer is via a network of 26 banks including Axis Bank and ICICI Bank. If the amount is transferred to a bank outside the network, the transaction will take 60 minutes.

Low salaries causing stress

According to a survey released this week by Bayt.com, low salaries are the No 1 source of stress for many living in the region. Forty per cent of respondents list their financial situation as the chief stress-inducing factor in their lives, with 28 per cent admitting their low monthly wage is a worry. And more than half say their workplaces today are more stressful than they were a few years ago.

pf@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

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The specs

Engine: 2.0-litre 4-cyl turbo

Power: 247hp at 6,500rpm

Torque: 370Nm from 1,500-3,500rpm

Transmission: 10-speed auto

Fuel consumption: 7.8L/100km

Price: from Dh94,900

On sale: now

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