Vietnamese migrant workers made jobless by the coronavirus pandemic take part in daily prayers at Daionji Temple in Honjo, Japan. Getty Images
Vietnamese migrant workers made jobless by the coronavirus pandemic take part in daily prayers at Daionji Temple in Honjo, Japan. Getty Images
Vietnamese migrant workers made jobless by the coronavirus pandemic take part in daily prayers at Daionji Temple in Honjo, Japan. Getty Images
Vietnamese migrant workers made jobless by the coronavirus pandemic take part in daily prayers at Daionji Temple in Honjo, Japan. Getty Images

Migration into OECD countries dropped by a third in 2020 due to Covid-19


Jamie Prentis
  • English
  • Arabic

Migration into OECD countries — which comprises many of the world’s wealthiest countries — dropped by at least a third in 2020 to about 3.7 million.

It is the lowest figure since 2003 and has been attributed to the Covid-19 pandemic, said the OECD, the economic organisation of 38 member states.

Temporary labour migration fell in all countries, particularly in Japan (66 per cent), South Korea (57 per cent), Canada (43 per cent), Australia and the US (both 37 per cent).

New asylum applications in OECD countries in 2020 plummeted by 31 per cent, the biggest fall since the end of the Balkan crisis in the early 1990s.

In the US there were 576 000 new lawful permanent immigrants registered, 44 per cent less than in 2019, and the UK there were slightly fewer than 250,000, a fall of 30 per cent.

Typically in OECD countries, foreign-born workers were disproportionally hit by job losses “given their generally more precarious labour contracts but also their strong concentration in deeply affected sectors, such as hospitality”, the International Migration Outlook said.

“Young people with migrant parents are also facing particular difficulties in dealing with the disruptions and challenges brought about by the pandemic. About one in two children of immigrants do not speak the host-country language at home.

“As their parents tend to be less well able to support learning in the host-country language — and as their homes tend to be less well adapted to provide an appropriate learning environment — children of immigrants have often been particularly hard hit by the interruption of in-person education,” it said.

The report highlighted how migrants living in areas of high immigrant concentration typically faced greater disadvantages, including poor housing.

“This year’s Outlook shows that residential concentration, a feature of all OECD countries, can have an impact on immigrant’s integration and social cohesion,” OECD secretary general Mathias Cormann said.

Secretary general of the OECD Mathias Cormann said residential concentration can have affect an immigrant’s integration and social cohesion. AFP
Secretary general of the OECD Mathias Cormann said residential concentration can have affect an immigrant’s integration and social cohesion. AFP

“This may not always be negative. In the US for example, it’s associated with higher employment probability for migrants. In Europe on the other hand, areas with high concentration of migrants tend to be more disadvantaged areas with lower overall education outcomes,” Australia's former finance minister said.

“In a number of EU countries this can amount to the equivalent of a loss of more than a year of schooling, which is, of course, an area of concern.”

He said that there were trade-offs when it came to residential concentrations “among immigrants with short-terms gains for recently arrived immigrants, but risks for integration in the long run, especially for children”.

The report states that disadvantages often reinforce one another.

“There is, for example, a further penalty for living in areas of high immigrant concentration, which results in fewer opportunities for language learning and lower education outcomes for children of migrants.

“Policy action should thus not only enhance integration offers in these neighbourhoods but also promote social and geographical mobility, which are closely interlinked. To enhance the opportunities of those who remain, improving housing and broader local infrastructure need to be an integral part of recovery programmes,” it says.

Frankenstein in Baghdad
Ahmed Saadawi
​​​​​​​Penguin Press

The bio

Favourite book: The Alchemist by Paulo Coelho

Favourite travel destination: Maldives and south of France

Favourite pastime: Family and friends, meditation, discovering new cuisines

Favourite Movie: Joker (2019). I didn’t like it while I was watching it but then afterwards I loved it. I loved the psychology behind it.

Favourite Author: My father for sure

Favourite Artist: Damien Hurst

Tamkeen's offering
  • Option 1: 70% in year 1, 50% in year 2, 30% in year 3
  • Option 2: 50% across three years
  • Option 3: 30% across five years 
Pharaoh's curse

British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.

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

The specs
Engine: 2.5-litre, turbocharged 5-cylinder

Transmission: seven-speed auto

Power: 400hp

Torque: 500Nm

Price: Dh300,000 (estimate)

On sale: 2022 

World Cricket League Division 2

In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.

UAE fixtures

Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final

Avengers: Endgame

Directors: Anthony Russo, Joe Russo

Starring: Robert Downey Jr, Chris Evans, Scarlett Johansson, Chris Hemsworth, Josh Brolin

4/5 stars 

Updated: October 28, 2021, 11:06 AM