Kuwaiti foreign minister survives no-confidence vote in parliament

Kuwait’s foreign minister survived a vote of no confidence on Wednesday after MPs filed a motion to investigate alleged financial irregularities in his department.

A total of 10 MPs had pushed for the vote to oust Foreign Minister and Minister of State for Cabinet Affairs Sheikh Ahmad Nasser Al Mohammed.

He survived the tough questioning session in Kuwait's Parliament on Wednesday, after 23 members of parliament voted in favour of renewing confidence in the minister out of the 44 politicians who attended the session.

Sheikh Ahmad faced questions from Kuwait's Parliament last Tuesday on a number of issues, including allegations of wasting public funds, breaking laws and failure to protect the country's political and security interests.

A no-confidence vote requires the approval of the majority of MPs to be passed. But it is not uncommon for ministers facing a trust vote to resign before the session.

During last Tuesday’s special session, Sheikh Ahmad reacted to charges raised by one MP, denying the alleged irregularities. He tried to assure the public and MPs that the ministry cared about their welfare and interests abroad.

Sheikh Ahmad is the second minister in the current Kuwaiti government to face a vote of no confidence after Defence Minister Sheikh Hamad Jaber Al Ali Al Sabah survived a motion against him last month, over a number of decisions, including one to allow women to serve in combat roles.

Kuwait's Parliament enjoys legislative power and politicians have been known to challenge the government and royals.

The country has been shaken by disputes between elected politicians and successive governments dominated by the ruling Al Sabah family for more than a decade, with parliaments and Cabinets dissolved several times.

Tales of Yusuf Tadros

Adel Esmat (translated by Mandy McClure)

Hoopoe

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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