• A view of Lebanon's capital, Beirut, with the lights on only in some buildings. Lebanese rely on highly polluting diesel generators run by private neighbourhood operators to make up for shortfalls in electricity supply from the state utility. EPA
    A view of Lebanon's capital, Beirut, with the lights on only in some buildings. Lebanese rely on highly polluting diesel generators run by private neighbourhood operators to make up for shortfalls in electricity supply from the state utility. EPA
  • A fisherman uses a headlamp at the seaside corniche in Beirut, Lebanon. EPA
    A fisherman uses a headlamp at the seaside corniche in Beirut, Lebanon. EPA
  • A vendor sells LED balloons in full darkness at the corniche in Beirut. EPA
    A vendor sells LED balloons in full darkness at the corniche in Beirut. EPA
  • The near collapse of the national grid has increased the duration of power cuts across Lebanon. EPA
    The near collapse of the national grid has increased the duration of power cuts across Lebanon. EPA
  • Residents of Beirut are experiencing power cuts of up to 20 hours a day. EPA
    Residents of Beirut are experiencing power cuts of up to 20 hours a day. EPA

Don't fear sanctions over energy supply plans, US tells Lebanon


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The US ambassador to Lebanon has told the Lebanese government it should not worry about the effects of a sanctions law on Syria as it plans to import energy and supplies from across the region, the office of Lebanese Prime Minister Najib Mikati said on Friday.

Lebanon, which is grappling with a deep financial crisis, is looking to import energy from fellow Arab states to ease an acute power shortage, but supplies would have to transit through Syria, which is subject to a US sanctions law.

US Ambassador Dorothy Shea handed Mr Mikati a letter from the US Treasury Department “to answer some of the concerns the Lebanese authorities had regarding regional energy agreements that the United States helped facilitate between Lebanon, Jordan and Egypt”, the statement from the prime minister's office said.

Ms Shea said the letter “represents forward momentum and a major event as we continue to make progress towards more sustainable and cleaner energy to help address the energy crisis facing the Lebanese people”, Lebanon's National News Agency reported.

Under a plan agreed to by Lebanon, Egypt, Jordan and Syria in September, Egyptian gas will be piped to Lebanon via Jordan and Syria to help boost Lebanon's power grid, which now delivers a few hours a day of electricity at best.

The plan, which has US backing, aims to pump the gas through a pipeline established about 20 years ago.

However, the plan has been complicated by US sanctions on the Syrian government, led by President Bashar Al Assad, prompting Lebanese officials to ask Washington to grant an exemption.

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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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7.10pm Jumeirah Derby Trial – Conditions (TB) $60,000 (T)
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7.45pm Al Rashidiya – Group 2 (TB)  $180,000  (T) 1,800m 

8.20pm Al Fahidi Fort – Group 2 (TB) $180,000 (T) 1,400m 

8.55pm Dubawi Stakes – Group 3 (TB) $150,000 (D) 1,200m 

9.30pm Aliyah – Rated Conditions (TB) $80,000 (D) 2,000m  

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Updated: January 14, 2022, 3:14 PM