President Barham Salih receiving Prime Minister Mustafa Al Kadhimi at Salam Palace in the capital Baghdad. AFP
President Barham Salih receiving Prime Minister Mustafa Al Kadhimi at Salam Palace in the capital Baghdad. AFP
President Barham Salih receiving Prime Minister Mustafa Al Kadhimi at Salam Palace in the capital Baghdad. AFP
President Barham Salih receiving Prime Minister Mustafa Al Kadhimi at Salam Palace in the capital Baghdad. AFP

Iraqi president announces early elections in October


Mina Aldroubi
  • English
  • Arabic

Iraqi President Barham Salih signed on Monday a decree to hold early elections on October 10, responding to a key demand by protesters since late 2019.

Hundreds of thousands of Iraqis took to the streets in Baghdad and the southern provinces to vent their anger and frustration at the government's inability to fight corruption and provide them with security and stability since late 2019.

"We invite everyone to participate and to express their free will as it is an opportunity.. to ensure Iraq's transition towards development, stability and independence," Mr Salih said.

Demonstrators have been calling for an end to endemic corruption by a political class that is largely seen as having squandered Iraq's resources through greed and mismanagement.
The protests were violently quelled resulting in the death of hundreds and injury of thousands.

Prime Minister Mustafa Al Kadhimi vowed to meet the demands of protesters by holding early elections in June 6, 2021, nearly a year ahead of schedule, when he took office last May.

These were later postponed to October 10.

The delay was due to "technical" requirements, Mr Al Kadhimi said in January in a proposal submitted to the Cabinet to ensure a transparent electoral process.

He did not provide details on what the issues were.

The May 2018 federal elections were mired with allegations of voter fraud and corruption and saw historically low turnout.

Parliament must dissolve itself in order for the polls to be held.

Late last year, Mr Salih ratified a new electoral law aimed at giving political independents a chance at winning seats in parliament.

The law was passed in parliament despite objections from political parties.

Over 25 million Iraqis are eligible to vote in the upcoming ballot, however, those living abroad will be excluded from casting their ballots, according to Iraq's Independent High Electoral Commission 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

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