This week in money

Middle East salaries to be 2 per cent higher this year

The recruitment company Robert Walters says salaries in the Middle East will increase by 2 per cent on average in 2017, with a flat start to the year and modest gains across the board in the second half. Economic growth in the run-up to Expo 2020 will increase demand for talent across the legal, finance, sales and marketing, procurement and IT sectors, the company said.

Dubai healthcare plan now available online

Oman Insurance Company has launched a portal on its website www.tameen.ae, allowing customers to buy their Dubai Health Authority-approved medical plan online. The company is one of nine insurers offering the low-cost Essential Benefits Plan, which caters for those earning Dh4,000 or less.

6.4%

American consumer credit climbed less than forecast in December in the smallest annual increase in household borrowing since 2013. The US$14.2 billion advance last month followed a revised $25.2bn jump the previous month, Federal Reserve figures revealed last week. For all of 2016, borrowing rose by 6.4 per cent. Consumer debt was restrained in December by a smaller advance in credit card balances.

Bank of mum and dad busy with support

Millennials with children say they received $11,011 in financial support or unpaid labour, on average, from their parents in 2016, according to a US study by TD Ameritrade. That adds up to $253bn. David Lynch, managing director and head of branches for TD Ameritrade, says young adults face a different set of challenges – sizeable student loans and stagnant wages.

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It’s steadily out of control. I don’t know of too many financial counselling services where demand doesn’t exceed supply

Fiona Guthrie, chief executive of Financial Counselling Australia, on an increase in calls to helplines by consumers and investors

Types of fraud

Phishing: Fraudsters send an unsolicited email that appears to be from a financial institution or online retailer. The hoax email requests that you provide sensitive information, often by clicking on to a link leading to a fake website.

Smishing: The SMS equivalent of phishing. Fraudsters falsify the telephone number through “text spoofing,” so that it appears to be a genuine text from the bank.

Vishing: The telephone equivalent of phishing and smishing. Fraudsters may pose as bank staff, police or government officials. They may persuade the consumer to transfer money or divulge personal information.

SIM swap: Fraudsters duplicate the SIM of your mobile number without your knowledge or authorisation, allowing them to conduct financial transactions with your bank.

Identity theft: Someone illegally obtains your confidential information, through various ways, such as theft of your wallet, bank and utility bill statements, computer intrusion and social networks.

Prize scams: Fraudsters claiming to be authorised representatives from well-known organisations (such as Etisalat, du, Dubai Shopping Festival, Expo2020, Lulu Hypermarket etc) contact victims to tell them they have won a cash prize and request them to share confidential banking details to transfer the prize money.

* Nada El Sawy

While you're here

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Various Artists
Habibi Funk: An Eclectic Selection Of Music From The Arab World (Habibi Funk)

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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

Salaries, health care, consumer credit and the woes of being a Millennial.

Types of fraud

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Ten tax points to be aware of in 2026