Sudan's new Cabinet was sworn in on Wednesday with ministers from rebel groups included as part of a deal that transitional authorities struck last year with a rebel alliance.
The swearing-in ceremony took place amid violent protests in several cities over the high cost of living and decimated Sudanese economy.
The new Cabinet includes rebel leaders and has been tasked with fixing an economy ravaged by decades of US sanctions, mismanagement and civil war under ousted president Omar Al Bashir.
It also faces breathtaking inflation, chronic hard currency shortages and a flourishing black market.
On Tuesday, demonstrators in Nyala, capital of South Darfur state, hurled stones at police and set several shops on fire in the main market, an AFP correspondent there said.
"No to high prices, no to hunger," they chanted, as police fired tear gas to disperse them.
Authorities in South Darfur imposed a 12-hour night-time curfew starting from 6pm.
Sudan has been undergoing a rocky transition since the April 2019 toppling of Al Bashir following mass protests against his rule, triggered by economic hardships including a hike in bread prices.
On Monday, Prime Minister Abdalla Hamdok named a new team that includes rebel leader and economist Gibril Ibrahim as finance minister.
Mr Ibrahim vowed on Twitter: "We promise not to sleep until we end bread and fuel queues, and to make life-saving medications available at reasonable prices."
Mr Hamdok spoke by phone on Tuesday with US Secretary of State Antony Blinken, who voiced support for the transitional government.
Mr Hamdok tweeted that the US was committed supporting lasting peace and democracy in Sudan and "helping us push our economic relations to new frontiers".
Mr Blinken and Mr Hamdok "discussed ways to promote economic reform and development, while also implementing recent peace agreements and addressing the root causes of violence in Darfur", the State Department said.
The US late last year rescinded Sudan's designation as a state sponsor of terrorism, a legacy from Al Bashir's rule that severely impeded investment.
Former president Donald Trump went ahead after Sudanese leaders told him that they would normalise relations with Israel, a major cause for the US.
State news agency SUNA said the latest demonstrations were sparked by sharp increases in the cost of main ingredients for making bread.
In Port Sudan on the Red Sea, student-led protests prompted the suspension of schools and closure of several shops, SUNA said.
Police seized weapons and ammunition from the protesters in Nyala, the main city of South Darfur province, SUNA quoted the provincial governor as saying.
"Police forces dispersed the protests and riots in Nyala after demonstrators attempted to storm shops in the city's market," SUNA said.
Similar demonstrations were held in other regions, including North Kordofan, according to SUNA and videos posted online.
Some footage, which could not immediately be verified, showed demonstrators in Al Obeid, the state capital, lugging sacks of wheat apparently looted from bakeries.
Protests over economic hardships have also been staged in recent weeks in the capital Khartoum and the eastern state of Gedaref, considered Sudan's breadbasket, with looting and robberies reported.
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
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FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
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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
