A reshuffle in Yemen's separatist Southern Transitional Council to include two additional members of the ruling Presidential Leadership Council has made it the strongest body in the country's south, analysts say.
STC head Aidaroos Al Zubeidi — who is also vice president of the PLC — appointed Giants Brigades chief Abdul Rahman Saleh Zain Al Mahrami to the body and made former governor of Hadramawt Faraj Salmeen Muhammad Al Bahsani the council's vice chairman.
As Mr Al Mahrami and Mr Al Bahsani are both members of the PLC, the STC now includes three of the PLC's eight members.
“The reshuffle itself has been expected as the STC is now in its sixth year since launch, but some of the names included were not,” Jacob Sufyani of the South24 think tank told The National.
“This reshuffle strengthens the STC politically, militarily and security-wise as the Giants Brigades and STC — the two strongest bodies in Yemen's south — are united.”
Created in April 2017, the STC supports independence from Yemen's north, to bring the situation back to what it was in 1990 before the south, then-known as the People's Democratic Republic of Yemen, was united with the Yemen Arab Republic.
A source at the STC told The National the reshuffle would improve performance as previous leaders of the council were “not up to par”.
“The council was set up in 2017 during a difficult and sensitive time and there was not enough time to accurately assess and select the most efficient leadership,” the source said.
“The reshuffle also came to allow other southern components, which have recently joined the council, to become active members of it.”
It also came on the heels of the Southern National Consultative Meeting, which concluded in Aden on Sunday. During the meeting, several southern bodies also officially joined the STC.
One of the meeting's most significant outcomes was the signing of the Southern National Pact, which says the “south state is built on the basis of a federal, democratic, civil, Arab and Islamic state”, with the political system based on the separation of powers and “political pluralism”, South24 reported.
The SNP criminalises “the establishment of political parties on religious, sectarian, ethnic or regional basis” and upholds “values of tolerance, moderation, coexistence and acceptance of others”.
It also calls for equal rights between men and women and the reformation of state institutions to be more inclusive towards women and youths.
More announcements are expected within the STC's General Secretariat and the National Assembly, the source said.
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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
Company profile
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