A Lebanese parliamentary session to discuss a law on capital control and the creation of a sovereign wealth fund has been postponed after legislators from the two main Christian political parties boycotted the session.
The Free Patriotic Movement and Lebanese forces said they would oppose any parliamentary meeting during which the laws will be voted on as long as the country is without a president.
They said that, according to the Lebanese constitution, the parliament is supposed to become an electoral body and convene only to elect a new head of state.
Only 53 of 128 MPs showed up for the session, causing its cancellation because of the lack of a quorum. No date was provided for a new session.
Lebanon has been without a president since October 2022. The highly divided parliament has convened 12 times to chose a successor to former head of state Michel Aoun, yet failed to reach consensus on a candidate's name.
A law on capital control, which limits the flow of foreign capital in and out of the country, is one of the prerequisites of an International Monetary Fund (IMF) deal to unlock billions of dollars in loans and lift the country out of its steep financial crisis, which began in 2019.
Because of the dollar shortage, Lebanese banks have enforced drastic and discretionary limits on transfers and withdrawals for ordinary savers while favouring well-connected depositors.
The international community considers capital control the only way to ensure a fair distribution of the foreign currency assets left in the economy.
It was on the road map of reforms of Wassim Mansouri, who took on the role of interim head of Lebanon's central bank on July 31.
Several versions of the law on capital controls have been proposed since the crisis started, but it has never been passed despite the central bank's foreign exchange reserves dwindling.
Dozens demonstrated outside the parliament building in Beirut before of a scheduled legislative session to condemn the constraining measures, which they view as illegal because of the lack of formal legislation.
The sovereign wealth fund law, also due to be discussed, refers to a state-owned investment fund that holds and manages financial assets on behalf of a country's government.
Its creation was approved on July 31 by parliament's finance and budget committee.
This is related to the oil and gas exploration in Block 9 of its exclusive economic zone led by French company TotalEnergies after a US-brokered deal that in October 2022 delineated the disputed maritime boundaries between Lebanon and Israel.
Sums generated from natural resources are supposed to be used for investment abroad and development projects.
The offshore drilling rig arrived in Lebanese waters on Tuesday to begin oil and gas exploration. There are no guarantees that Block 9 holds any oil or gas.
MATCH INFO
Uefa Champions League semi-final, first leg
Tottenham 0-1 Ajax, Tuesday
Second leg
Ajax v Tottenham, Wednesday, May 8, 11pm
Game is on BeIN Sports
Short-term let permits explained
Homeowners and tenants are allowed to list their properties for rental by registering through the Dubai Tourism website to obtain a permit.
Tenants also require a letter of no objection from their landlord before being allowed to list the property.
There is a cost of Dh1,590 before starting the process, with an additional licence fee of Dh300 per bedroom being rented in your home for the duration of the rental, which ranges from three months to a year.
Anyone hoping to list a property for rental must also provide a copy of their title deeds and Ejari, as well as their Emirates ID.
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- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
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
GAC GS8 Specs
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