• Michel Aoun, Lebanon's outgoing president, addresses his supporters as he leaves the presidential palace in Baabda on the day before his six-year term officially ends. Reuters
    Michel Aoun, Lebanon's outgoing president, addresses his supporters as he leaves the presidential palace in Baabda on the day before his six-year term officially ends. Reuters
  • Supporters of Lebanese President Michel Aoun gather to say farewell near the presidential palace in Baabda, Lebanon. Reuters
    Supporters of Lebanese President Michel Aoun gather to say farewell near the presidential palace in Baabda, Lebanon. Reuters
  • Supporters of Lebanese President Michel Aoun gather to say farewell near the presidential palace in Baabda, Lebanon. Reuters
    Supporters of Lebanese President Michel Aoun gather to say farewell near the presidential palace in Baabda, Lebanon. Reuters
  • A man sells balloons bearing likenesses of Lebanon's departing President Michel Aoun and Gebran Bassil, a Christian MP, former minister and Mr Aoun's son-in-law, as supporters gather to say farewell to Mr Aoun near the presidential palace in Baabda, Lebanon. Reuters
    A man sells balloons bearing likenesses of Lebanon's departing President Michel Aoun and Gebran Bassil, a Christian MP, former minister and Mr Aoun's son-in-law, as supporters gather to say farewell to Mr Aoun near the presidential palace in Baabda, Lebanon. Reuters
  • Supporters celebrate the career of Michel Aoun, Lebanon's departing president, at the presidential palace in Baabda, Lebanon. Reuters
    Supporters celebrate the career of Michel Aoun, Lebanon's departing president, at the presidential palace in Baabda, Lebanon. Reuters
  • Supporters of the outgoing Lebanese President Michel Aoun gather at Baabda Palace ahead of Aoun's farewell ceremony at the end of his term, Baabda, east of Beirut, Lebanon. EPA
    Supporters of the outgoing Lebanese President Michel Aoun gather at Baabda Palace ahead of Aoun's farewell ceremony at the end of his term, Baabda, east of Beirut, Lebanon. EPA
  • Supporters of the outgoing Lebanese President Michel Aoun pose under a national flag as they gather at Baabda Palace ahead of Aoun's farewell ceremony at the end of his term, Baabda, east of Beirut, Lebanon. EPA
    Supporters of the outgoing Lebanese President Michel Aoun pose under a national flag as they gather at Baabda Palace ahead of Aoun's farewell ceremony at the end of his term, Baabda, east of Beirut, Lebanon. EPA
  • Supporters of the outgoing Lebanese President Michel Aoun gather at Baabda Palace ahead of Aoun's farewell ceremony at the end of his term, Baabda, east of Beirut, Lebanon. EPA
    Supporters of the outgoing Lebanese President Michel Aoun gather at Baabda Palace ahead of Aoun's farewell ceremony at the end of his term, Baabda, east of Beirut, Lebanon. EPA
  • A supporter of the outgoing Lebanese President Michel Aoun holds his portrait during a gathering at Baabda Palace. Mr Aoun served in the Lebanese Army from 1958 to 1991. EPA
    A supporter of the outgoing Lebanese President Michel Aoun holds his portrait during a gathering at Baabda Palace. Mr Aoun served in the Lebanese Army from 1958 to 1991. EPA
  • Supporters of Lebanon's President Michel Aoun at the presidential palace in Baabda. AFP
    Supporters of Lebanon's President Michel Aoun at the presidential palace in Baabda. AFP
  • Lebanon's President Michel Aoun leaves the palace in Baabda on Sunday afternoon. Before his departure he signed a broad government resignation decree. AFP
    Lebanon's President Michel Aoun leaves the palace in Baabda on Sunday afternoon. Before his departure he signed a broad government resignation decree. AFP
  • Supporters of Lebanon's President Michel Aoun cheer under a large national flag, as he prepares to leave the presidential palace in Babbda at the end of his mandate. AFP
    Supporters of Lebanon's President Michel Aoun cheer under a large national flag, as he prepares to leave the presidential palace in Babbda at the end of his mandate. AFP
  • An image of Lebanon's departing President Michel Aoun is held high by a supporter near the presidential palace in Baabda, Lebanon. Reuters
    An image of Lebanon's departing President Michel Aoun is held high by a supporter near the presidential palace in Baabda, Lebanon. Reuters

Qatar envoy visits Lebanon as push to end presidential vacuum continues


Jamie Prentis
  • English
  • Arabic

Qatari Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani has been in Lebanon on an unannounced visit as part of an international effort to end the country's 15-month presidential vacuum. The exact dates of the visit were not clear.

No public mention of the trip was made by the two countries, nor were there any statements by Lebanese politicians. However, a political source played down the significance of the visit being unannounced, noting that not all trips by international envoys are made public.

Qatar is part of a powerful five-country group – the others being the US, France, Saudi Arabia and Egypt – that has explored efforts to end the impasse that has existed since Michel Aoun departed the presidential palace in Baabda at the end of October 2022.

And while many Lebanese political figures have expressed their gratitude for the initiative and the regular visits by the various envoys – whether announced or unannounced – a limited sense of optimism remains among those The National spoke to. Some also argue that a solution must come from within the country, rather than from outside it.

Despite 12 sessions, the deeply divided 128-seat parliament, where no faction holds a majority, has failed to come closer to electing Mr Aoun's successor. In Lebanon's unique confessional system, the position of president is reserved for a Maronite Christian, the prime minister a Sunni Muslim, and the speaker of parliament a Shiite Muslim.

At a meeting last summer in Doha, the five countries said they had discussed “concrete options with respect to implementing measures against those who are blocking progress”.

When the war on Gaza broke out on October 7, last year and spread to Lebanon's southern border, talk of the Lebanese presidential vacuum no longer made local headlines.

Later in December, when French envoy Jean-Yves Le Drian visited Beirut, the impetus appeared to be renewed even as the cross-border conflict between Lebanese armed group Hezbollah and Israel – which has largely been contained to south Lebanon – has continued to expand in its intensity.

Mr Le Drian, a former French foreign minister who was appointed as President Emmanuel Macron's envoy last summer, is expected to visit Lebanon again in early February.

During his November visit he for the first time floated the idea of finding a new candidate who had not received significant backing in previous polls.

Powerful Shiite group Hezbollah and its ally the Amal Movement have refused to budge from backing Suleiman Frangieh, the scion of a powerful Maronite family from north Lebanon and a close friend of Syria's Bashar Al Assad.

A bloc of MPs, comprised of about a third of parliament, backed MP Michel Moawad in the first 11 sessions, before supporting International Monetary Fund official Jihad Azour when the last poll was held last summer. It is widely accepted that neither man now has a chance to succeed Mr Aoun.

One name that continues to come up is the commander of the Lebanese Armed Forces, Gen Joseph Aoun, who is not related to the former president. However, some influential opposition to him remains, particularly from the Free Patriotic Movement – the party founded by Mr Aoun, the former president.

In the event of a presidential vacuum, the Council of Ministers takes on the powers of head of state. But the cabinet is in a caretaker status and its powers are therefore severely curtailed.

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

Updated: January 24, 2024, 2:31 PM