Watch: Israel 'successfully' tests naval air defence system

Israel on Monday said it successfully tested a new naval air defence system, intercepting a series of threats in what officials called a key layer of protection against Iran and its proxies in the region.

The “C-Dome” system is a naval version of the Iron Dome, which has been used to shoot down rockets fired from the Gaza Strip for the past decade. The C-Dome is being installed on Israel’s latest-generation corvette warships, which protect Israel’s coastline and offshore natural gas assets in the Mediterranean.

The tests simulated a number of incoming threats, including rockets, cruise missiles and drones, the Defence Ministry said.

Footage shared by the Israeli Ministry of Defence showed a missile taking off from the deck of a Sa’ar-6 corvette naval ship in the Mediterranean and intercepting a missile aimed at it from land.

“The systems that we are developing as part of Israel’s multi-tier missile defence array enable us to operate against Iranian proxies in the region and defend against their weapon systems, which are constantly being upgraded,” Defence Minister Benny Gantz said. “We continue to be two steps before them and we will continue developing and upgrading our capabilities in order to maintain security superiority in the region.”

The ministry said the tests were conducted recently, but declined to be more specific.

The C-Dome is to become part of Israel’s multilayer missile defence system — which includes weapons capable of intercepting everything from long-range missiles to short-range rockets.

The test comes at a time of heightened tensions. The Iranian-backed Hezbollah militant group launched a pair of drones into Israeli airspace last week, and Iran is believed to be close to signing a new international nuclear deal with global powers that will give it relief from crippling sanctions. Israel opposes the deal, and fears that Iran will divert newly released funds to proxies like Hezbollah.

Hezbollah has made no secret that it would target Israel’s gas platforms if fighting were to break out. Israel and Hezbollah fought a month-long war in 2006. During that fighting, Hezbollah fired a missile that struck an Israeli warship, killing four Israeli soldiers.

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

Watch: Israel 'successfully' tests naval air defence system

The naval version of the Iron Dome

Ten tax points to be aware of in 2026