• People walk under posters showing Mustafa Kemal Ataturk, founder of modern Turkey, in Ankara. The country is holding its first presidential run-off election after neither candidate earned more than 50 per cent of the vote in the May 14 election. Getty
    People walk under posters showing Mustafa Kemal Ataturk, founder of modern Turkey, in Ankara. The country is holding its first presidential run-off election after neither candidate earned more than 50 per cent of the vote in the May 14 election. Getty
  • A couple walk under a poster of Turkish presidential candidate Kemal Kilicdaroglu, leader of the opposition Republican People's Party, the day after the general election, in Ankara. EPA
    A couple walk under a poster of Turkish presidential candidate Kemal Kilicdaroglu, leader of the opposition Republican People's Party, the day after the general election, in Ankara. EPA
  • People sit on a bench by posters showing Mr Kilicdaroglu in Ankara. Getty
    People sit on a bench by posters showing Mr Kilicdaroglu in Ankara. Getty
  • The bustling Taksim area of Istanbul. Turkey will hold its first presidential run-off election after neither candidate earned more than 50 per cent of the vote this week. Getty
    The bustling Taksim area of Istanbul. Turkey will hold its first presidential run-off election after neither candidate earned more than 50 per cent of the vote this week. Getty
  • People eat ice cream in Istanbul as the country prepares for an election run-off later this month. Getty
    People eat ice cream in Istanbul as the country prepares for an election run-off later this month. Getty
  • People stand in front of the Guven Monument in Ankara. Getty
    People stand in front of the Guven Monument in Ankara. Getty
  • The second round of voting will be held on May 28. Getty
    The second round of voting will be held on May 28. Getty
  • A passenger reads a newspaper on a ferry across the Bosphorus in Istanbul. Bloomberg
    A passenger reads a newspaper on a ferry across the Bosphorus in Istanbul. Bloomberg
  • Politics dominates the headlines in Istanbul on the day after the presidential elections. AP
    Politics dominates the headlines in Istanbul on the day after the presidential elections. AP
  • A billboard featuring presidential candidate Mr Kilicdaroglu in Istanbul. AP
    A billboard featuring presidential candidate Mr Kilicdaroglu in Istanbul. AP
  • A run-off for the presidency was expected to lead to volatility for the Turkish lira. AP
    A run-off for the presidency was expected to lead to volatility for the Turkish lira. AP
  • Supporters of President Recep Tayyip Erdogan gather at the AK Party's headquarters in Istanbul on election night. Getty
    Supporters of President Recep Tayyip Erdogan gather at the AK Party's headquarters in Istanbul on election night. Getty
  • Mr Erdogan, accompanied by his wife Emine, addresses supporters in Ankara. Photo: Turkish Presidential Press Office
    Mr Erdogan, accompanied by his wife Emine, addresses supporters in Ankara. Photo: Turkish Presidential Press Office
  • Election officials count ballots in Diyarbakir after polls closed in Turkey's presidential and parliamentary elections. AFP
    Election officials count ballots in Diyarbakir after polls closed in Turkey's presidential and parliamentary elections. AFP
  • Turkish presidential candidate Kemal Kilicdaroglu, leader of the opposition Republican People's Party, speaks to the media in Ankara. EPA
    Turkish presidential candidate Kemal Kilicdaroglu, leader of the opposition Republican People's Party, speaks to the media in Ankara. EPA
  • Mr Erdogan's supporters wave flags outside the AK Party's headquarters in Ankara. Reuters
    Mr Erdogan's supporters wave flags outside the AK Party's headquarters in Ankara. Reuters
  • Mr Erdogan casts his vote in Istanbul on Sunday. Getty
    Mr Erdogan casts his vote in Istanbul on Sunday. Getty
  • Mr Kilicdaroglu votes in Ankara. Getty
    Mr Kilicdaroglu votes in Ankara. Getty
  • People wait for Mr Erdogan outside a polling station in Istanbul. Reuters
    People wait for Mr Erdogan outside a polling station in Istanbul. Reuters
  • A man holds a ballot at a polling station in Hatay. Reuters
    A man holds a ballot at a polling station in Hatay. Reuters
  • A ballot paper featuring candidates for Turkey's presidential and parliamentary elections. Reuters
    A ballot paper featuring candidates for Turkey's presidential and parliamentary elections. Reuters
  • Voting began in Turkey's presidential election on Sunday morning. Reuters
    Voting began in Turkey's presidential election on Sunday morning. Reuters
  • A voter casts a ballot at a polling station in Hatay. Reuters
    A voter casts a ballot at a polling station in Hatay. Reuters
  • Hatay is one of the Turkish regions that were worst-affected by February's earthquake. Reuters
    Hatay is one of the Turkish regions that were worst-affected by February's earthquake. Reuters
  • Voters take a closer look at the candidates on the ballot, in Ankara. Getty
    Voters take a closer look at the candidates on the ballot, in Ankara. Getty
  • A ballot paper with Mr Erdogan, Muharrem Ince, Mr Kilicdaroglu and Sinan Ogan. Getty
    A ballot paper with Mr Erdogan, Muharrem Ince, Mr Kilicdaroglu and Sinan Ogan. Getty
  • Voters queue outside a polling station in Istanbul. Reuters
    Voters queue outside a polling station in Istanbul. Reuters
  • Bags containing blank ballots are stored at a temporary polling station in the courtyard of a quake-damaged school in Hatay. Reuters
    Bags containing blank ballots are stored at a temporary polling station in the courtyard of a quake-damaged school in Hatay. Reuters
  • An election worker prepares a temporary polling station in Hatay. Reuters
    An election worker prepares a temporary polling station in Hatay. Reuters

Turkey election results: Run-off as Erdogan falls short of 50% threshold


Holly Johnston
  • English
  • Arabic

Turkey's President Recep Tayyip Erdogan fell short of securing a majority in a tight election race on Monday, sending voters back to the polls for a second-round run-off.

Preliminary results showed Mr Erdogan had received 49.51 per cent of votes, short of the 50 per cent needed to win in the first round, High Election Board chief Ahmet Yener said on Monday.

His closest rival Kemal Kilicdaroglu had 44.88 per cent, the board said, while third-placed candidate Sinan Ogan had 5.17 per cent.

The remaining 35,874 uncounted overseas votes would not tip any of the candidates over the 50 per cent threshold, Mr Yener said.

The second round of voting will be held on May 28.

Before the final result, Mr Ogan said he could only support Mr Kilicdaroglu in the run-off if he agreed to offer no concessions to a pro-Kurdish party.

“We will consult with our voter base for our decision in the run-off. But we already made clear that the fight against terrorism and sending refugees back are our red lines,” he said.

Speaking earlier on Monday, Mr Erdogan said a second round would be “welcome”.

Mr Kilicdaroglu urged his supporters not to be disheartened.

“Do not fall into despair. I will stand upright.,” he tweeted shortly after the election board announcement.

“I will tell you my clear observations of what is happening. Then we will stand up and take this election together.”

He said earlier on Monday that he would accept the people's decision for a second round, as Mr Erdogan said another poll would be “welcome”.

Media outlets, which were banned from reporting on the election until after 6.30pm local time, offered differing predictions as votes were counted across the country.

State-run news agencies initially placed Mr Erdogan ahead of Mr Kilicdaroglu, while opposition officials accused Anadolu Agency of manipulating data in favour of the President.

“We will not sleep tonight, my people,” said Mr Kilicdaroglu, leader of the People's Republican Party (CHP), calling on the election board to release data from various provinces.

The election authority later said it was not withholding vote counts from political parties.

Election rallies in Turkey ahead of May 14 elections - in pictures

  • Turkish President and People's Alliance's candidate Recep Tayyip Erdogan at a campaign rally in Ankara. AFP
    Turkish President and People's Alliance's candidate Recep Tayyip Erdogan at a campaign rally in Ankara. AFP
  • Emine Erdogan, the President's wife, greets his supporters in Ankara on Sunday. AFP
    Emine Erdogan, the President's wife, greets his supporters in Ankara on Sunday. AFP
  • Supporters of Mr Erdogan at the Ankara rally. AFP
    Supporters of Mr Erdogan at the Ankara rally. AFP
  • Mr and Mrs Erdogan wave to supporters. AFP
    Mr and Mrs Erdogan wave to supporters. AFP
  • Mr Erdogan delivers his speech in Ankara on Sunday. AFP
    Mr Erdogan delivers his speech in Ankara on Sunday. AFP
  • Mr Erdogan delivers his speech in Ankara on Sunday. AFP
    Mr Erdogan delivers his speech in Ankara on Sunday. AFP
  • Mr Erdogan delivers his speech in Ankara on Sunday. AFP
    Mr Erdogan delivers his speech in Ankara on Sunday. AFP
  • Supporters of Mr Erdogan wave Turkish flags at the Ankara rally. AFP
    Supporters of Mr Erdogan wave Turkish flags at the Ankara rally. AFP
  • The Erdogans wave to supporters. AFP
    The Erdogans wave to supporters. AFP
  • Erdogan supporters smile at the campaign rally. AFP
    Erdogan supporters smile at the campaign rally. AFP
  • Supporters listen to Mr Erdogan's address in Ankara on Sunday. AP
    Supporters listen to Mr Erdogan's address in Ankara on Sunday. AP
  • Mr Erdogan speaks with an Ankara football club's scarf around his neck. AP
    Mr Erdogan speaks with an Ankara football club's scarf around his neck. AP
  • Supporters of Turkey's Republican People's Party chairman and Presidential candidate Kemal Kilicdaroglu rally in Izmir, Turkey, on Sunday. Republican People's Party Press Service / AFP
    Supporters of Turkey's Republican People's Party chairman and Presidential candidate Kemal Kilicdaroglu rally in Izmir, Turkey, on Sunday. Republican People's Party Press Service / AFP
  • Mr Kilicdaroglu delivers a speech in Izmir. Republican People's Party Press Service / AFP
    Mr Kilicdaroglu delivers a speech in Izmir. Republican People's Party Press Service / AFP
  • Mr Kilicdaroglu and his wife Selvi wave to supporters. Republican People's Party Press Service / AFP
    Mr Kilicdaroglu and his wife Selvi wave to supporters. Republican People's Party Press Service / AFP
  • Mr and Mrs Kilicdaroglu pose in front of thousands of his supporters. Republican People's Party Press Service / AFP
    Mr and Mrs Kilicdaroglu pose in front of thousands of his supporters. Republican People's Party Press Service / AFP
  • Mr Kilicdaroglu's supporters throng in Izmir. Republican People's Party Press Service / AFP
    Mr Kilicdaroglu's supporters throng in Izmir. Republican People's Party Press Service / AFP
  • Supporters of Mr Kilicdaroglu make the heart gesture in Izmir. Republican People's Party Press Service / AFP
    Supporters of Mr Kilicdaroglu make the heart gesture in Izmir. Republican People's Party Press Service / AFP
  • Supporters wave flags and chant while awaiting the arrival of CHP presidential candidate Kemal Kilicdaroglu at a campaign rally on Sunday in Izmir, Turkey. He is considered to pose a major threat to President Recep Tayyip Erdogan's long rule in the May elections. Getty
    Supporters wave flags and chant while awaiting the arrival of CHP presidential candidate Kemal Kilicdaroglu at a campaign rally on Sunday in Izmir, Turkey. He is considered to pose a major threat to President Recep Tayyip Erdogan's long rule in the May elections. Getty
  • Mr Kilicdaroglu addresses his supporters on Sunday. Republican People's Party Press Service / AFP
    Mr Kilicdaroglu addresses his supporters on Sunday. Republican People's Party Press Service / AFP
  • Supporters await Mr Kilicdaroglu's arrival in Izmir. Getty
    Supporters await Mr Kilicdaroglu's arrival in Izmir. Getty
  • Supporters await Mr Kilicdaroglu's arrival in Izmir. Getty
    Supporters await Mr Kilicdaroglu's arrival in Izmir. Getty
  • The Kilicdaroglus return the heart gesture to his supporters. Getty
    The Kilicdaroglus return the heart gesture to his supporters. Getty
  • Supporters await Mr Kilicdaroglu's arrival in Izmir. Getty
    Supporters await Mr Kilicdaroglu's arrival in Izmir. Getty

Opposition figures said the government was deliberately slowing down the count in districts where Mr Kilicdaroglu was enjoying strong support.

“They are contesting the count emerging from ballot boxes where we are massively ahead,” Istanbul's mayor, Ekrem Imamoglu, said.

State broadcaster TRT earlier showed Mr Erdogan leading with just over 50 per cent of votes, compared with Mr Kilicdaroglu's 43 per cent, based on almost 86 per cent of votes counted.

HalkTV, close to the CHP, also placed the President ahead of its candidate, although estimates continued to fluctuate as the night progressed.

But later, Mr Kilicdaroglu wrote on Twitter that “we are leading”, while Mr Imamoglu and Ankara Mayor Mansur Yavas also said he was on track for victory.

In past elections, Mr Erdogan has generally placed ahead in early results as votes from urban centres are still to be counted.

Exit polls are banned in Turkey.

Mr Erdogan also wrote on Twitter that hurried results were “stealing the national will of the people”.

CHP officials have said the party expects its highest turnout to date in Istanbul as polls closed in the country's most important presidential election yet.

“We expect record turnout in Istanbul,” said Canan Kaftancioglu, the CHP's provincial leader in Istanbul, where Mr Erdogan made a last attempt to appeal to voters at three separate rallies on Saturday.

“There is information that this is the case all over Turkey,” Ms Kaftancioglu said. He added that the party expected a 90 per cent voter turnout in Turkey's largest city of almost 16 million.

  • Since the Syrian war broke out in 2011, Turkey has become the new home of at least 3.7 million people who fled the regime of President Bashar Al Assad, Russian bombardments and ISIS. All photos: AFP
    Since the Syrian war broke out in 2011, Turkey has become the new home of at least 3.7 million people who fled the regime of President Bashar Al Assad, Russian bombardments and ISIS. All photos: AFP
  • Most have temporary protection status, leaving them vulnerable to forced return
    Most have temporary protection status, leaving them vulnerable to forced return
  • The secular CHP party of Kemal Kilicdaroglu, who is running neck-and-neck against Mr Erdogan, pledges to repatriate Syrian refugees 'within two years'
    The secular CHP party of Kemal Kilicdaroglu, who is running neck-and-neck against Mr Erdogan, pledges to repatriate Syrian refugees 'within two years'
  • 'May Erdogan win,' says Neroz Hussein (pictured), a mother from Kurdish-majority Kobane in Syria's north-west. 'Recep Tayyip Erdogan will help us stay'
    'May Erdogan win,' says Neroz Hussein (pictured), a mother from Kurdish-majority Kobane in Syria's north-west. 'Recep Tayyip Erdogan will help us stay'
  • "Even if they don't send us back all at once, they will put pressure on us, demand papers, increase our rents and bills," she says.
    "Even if they don't send us back all at once, they will put pressure on us, demand papers, increase our rents and bills," she says.
  • About 240,000 Syrians have obtained Turkish citizenship and the accompanying right to vote in the approaching polls, in which a new parliament will also be elected
    About 240,000 Syrians have obtained Turkish citizenship and the accompanying right to vote in the approaching polls, in which a new parliament will also be elected
  • They can gain citizenship by investing or, like Hussein Utbah (pictured), by becoming students in sought-after fields such as electrical engineering
    They can gain citizenship by investing or, like Hussein Utbah (pictured), by becoming students in sought-after fields such as electrical engineering
  • 'My friends and I all have the same view: not only because we are Syrians, but because of what we see he has done for the country,' he said of Mr Erdogan
    'My friends and I all have the same view: not only because we are Syrians, but because of what we see he has done for the country,' he said of Mr Erdogan
  • Hussein also scoffed at the CHP's pledge to ensure Syrians' 'voluntary and dignified' return. 'We can't go back and trust Bashar al-Assad,' said Hussein, whose family fled Raqqa when it became the self-proclaimed ISIS capital in 2015
    Hussein also scoffed at the CHP's pledge to ensure Syrians' 'voluntary and dignified' return. 'We can't go back and trust Bashar al-Assad,' said Hussein, whose family fled Raqqa when it became the self-proclaimed ISIS capital in 2015
  • Syrians also provide a source of cheap labour on Turkish farms, construction sites and textile mills, causing some analysts to believe mass repatriation is unrealistic
    Syrians also provide a source of cheap labour on Turkish farms, construction sites and textile mills, causing some analysts to believe mass repatriation is unrealistic
  • Mohamed Utbah (pictured) wondered why anyone would want to send him back. 'We're not doing anything wrong here, we're useful to Turkey'
    Mohamed Utbah (pictured) wondered why anyone would want to send him back. 'We're not doing anything wrong here, we're useful to Turkey'

Results from Istanbul are decisive in determining the course of the election.

Sunday's presidential election, accompanied by parliamentary elections, is the most important to take place in the 100 years of the post-Ottoman republic.

For the millions of first-time voters taking to the polls, estimates suggested they could wake up under a new leader for the very first time.

Mr Kilicdaroglu had been predicted to narrowly beat Mr Erdogan and clinch victory in a single round.

His spokesman, Faik Oztrak, said they were seeing a positive picture even as TRT showed Mr Erdogan leading.

Polling stations in Taksim and Besiktas were packed in the late morning and into the afternoon.

As polling drew to a close, police erected security barriers in the central Taksim Square, historically the scene of large political protests.

KEY%20DATES%20IN%20AMAZON'S%20HISTORY
%3Cp%3E%3Cstrong%3EJuly%205%2C%201994%3A%3C%2Fstrong%3E%20Jeff%20Bezos%20founds%20Cadabra%20Inc%2C%20which%20would%20later%20be%20renamed%20to%20Amazon.com%2C%20because%20his%20lawyer%20misheard%20the%20name%20as%20'cadaver'.%20In%20its%20earliest%20days%2C%20the%20bookstore%20operated%20out%20of%20a%20rented%20garage%20in%20Bellevue%2C%20Washington%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EJuly%2016%2C%201995%3A%3C%2Fstrong%3E%20Amazon%20formally%20opens%20as%20an%20online%20bookseller.%20%3Cem%3EFluid%20Concepts%20and%20Creative%20Analogies%3A%20Computer%20Models%20of%20the%20Fundamental%20Mechanisms%20of%20Thought%3C%2Fem%3E%20becomes%20the%20first%20item%20sold%20on%20Amazon%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E1997%3A%3C%2Fstrong%3E%20Amazon%20goes%20public%20at%20%2418%20a%20share%2C%20which%20has%20grown%20about%201%2C000%20per%20cent%20at%20present.%20Its%20highest%20closing%20price%20was%20%24197.85%20on%20June%2027%2C%202024%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E1998%3A%3C%2Fstrong%3E%20Amazon%20acquires%20IMDb%2C%20its%20first%20major%20acquisition.%20It%20also%20starts%20selling%20CDs%20and%20DVDs%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2000%3A%3C%2Fstrong%3E%20Amazon%20Marketplace%20opens%2C%20allowing%20people%20to%20sell%20items%20on%20the%20website%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2002%3A%3C%2Fstrong%3E%20Amazon%20forms%20what%20would%20become%20Amazon%20Web%20Services%2C%20opening%20the%20Amazon.com%20platform%20to%20all%20developers.%20The%20cloud%20unit%20would%20follow%20in%202006%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2003%3A%3C%2Fstrong%3E%20Amazon%20turns%20in%20an%20annual%20profit%20of%20%2475%20million%2C%20the%20first%20time%20it%20ended%20a%20year%20in%20the%20black%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2005%3A%3C%2Fstrong%3E%20Amazon%20Prime%20is%20introduced%2C%20its%20first-ever%20subscription%20service%20that%20offered%20US%20customers%20free%20two-day%20shipping%20for%20%2479%20a%20year%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2006%3A%3C%2Fstrong%3E%20Amazon%20Unbox%20is%20unveiled%2C%20the%20company's%20video%20service%20that%20would%20later%20morph%20into%20Amazon%20Instant%20Video%20and%2C%20ultimately%2C%20Amazon%20Video%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2007%3A%3C%2Fstrong%3E%20Amazon's%20first%20hardware%20product%2C%20the%20Kindle%20e-reader%2C%20is%20introduced%3B%20the%20Fire%20TV%20and%20Fire%20Phone%20would%20come%20in%202014.%20Grocery%20service%20Amazon%20Fresh%20is%20also%20started%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2009%3A%3C%2Fstrong%3E%20Amazon%20introduces%20Amazon%20Basics%2C%20its%20in-house%20label%20for%20a%20variety%20of%20products%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2010%3A%3C%2Fstrong%3E%20The%20foundations%20for%20Amazon%20Studios%20were%20laid.%20Its%20first%20original%20streaming%20content%20debuted%20in%202013%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2011%3A%3C%2Fstrong%3E%20The%20Amazon%20Appstore%20for%20Google's%20Android%20is%20launched.%20It%20is%20still%20unavailable%20on%20Apple's%20iOS%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2014%3A%3C%2Fstrong%3E%20The%20Amazon%20Echo%20is%20launched%2C%20a%20speaker%20that%20acts%20as%20a%20personal%20digital%20assistant%20powered%20by%20Alexa%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2017%3A%3C%2Fstrong%3E%20Amazon%20acquires%20Whole%20Foods%20for%20%2413.7%20billion%2C%20its%20biggest%20acquisition%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2018%3A%3C%2Fstrong%3E%20Amazon's%20market%20cap%20briefly%20crosses%20the%20%241%20trillion%20mark%2C%20making%20it%2C%20at%20the%20time%2C%20only%20the%20third%20company%20to%20achieve%20that%20milestone%3C%2Fp%3E%0A
Step by step

2070km to run

38 days

273,600 calories consumed

28kg of fruit

40kg of vegetables

45 pairs of running shoes

1 yoga matt

1 oxygen chamber

Name: Peter Dicce

Title: Assistant dean of students and director of athletics

Favourite sport: soccer

Favourite team: Bayern Munich

Favourite player: Franz Beckenbauer

Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates 

 

MATCH INFO

Manchester United 2 (Heaton (og) 42', Lindelof 64')

Aston Villa 2 (Grealish 11', Mings 66')

World record transfers

1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m

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

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

Andor
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Updated: May 15, 2023, 3:07 PM