South African President and ANC leader Cyril Ramaphosa, left, attends the official announcement of election results in Johannesburg on Sunday. Getty Images
South African President and ANC leader Cyril Ramaphosa, left, attends the official announcement of election results in Johannesburg on Sunday. Getty Images
South African President and ANC leader Cyril Ramaphosa, left, attends the official announcement of election results in Johannesburg on Sunday. Getty Images
South African President and ANC leader Cyril Ramaphosa, left, attends the official announcement of election results in Johannesburg on Sunday. Getty Images

South Africa faces political uncertainty after ANC loses majority in election


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President Cyril Ramaphosa urged South Africa's political leaders to work together and said there was no place for threats of violence after his ruling African National Congress (ANC) party lost its parliamentary majority for the first time in 30 years in last week's election.

The vote count released on Sunday gave the ANC 159 places in the 400-seat National Assembly with about 40 per cent of the ballot. It was the lowest tally in a general election since it came to power after the fall of apartheid.

The centre-right opposition Democratic Alliance (DA) was on 87, former ANC leader Jacob Zuma's uMkhonto we Sizwe (MK) on 58 and the Economic Freedom Fighters (EFF) of leftist firebrand Julius Malema on 39, followed by several smaller parties.

The new parliament is to meet within two weeks and its first task will be to elect a president to form a new government.

In an address after the official results ceremony, Mr Ramaphosa was coy about his thinking regarding a coalition deal but stressed the need for all parties to respect the result and work together.

"Our people have spoken, whether we like it or not," he said, in an apparent nod to the expected legal challenge from MK and the implicit threat of unrest. As the leaders of political parties ... we must respect their wishes."

Supporters of former president Jacob Zuma's uMkhonto we Sizwe party celebrate its performance in South Africa's general election. AFP
Supporters of former president Jacob Zuma's uMkhonto we Sizwe party celebrate its performance in South Africa's general election. AFP

Mr Zuma's party was formed barely eight months ago as a vehicle for the charismatic but controversial 82-year-old former president to re-enter politics after being forced out of office as president and ANC leader in 2018 under a cloud of corruption allegations. MK said it was considering challenging the election results in court, despite performing much better than many had expected to come in third with 14.6 per cent of the vote.

Analysts have long feared Mr Zuma's party may stir up trouble if his supporters, who rioted and looted for days when he was arrested for contempt of court in 2021, reject the results.

The Democratic Alliance's veteran white leader John Steenhuisen repeated his pledge to work with the ANC, if only to head off what he has declared would be the "doomsday coalition" between the ruling party, MK and the EFF.

He described pledges in the MK and EFF manifestos to nationalise privately owned land and undermine judicial independence as "an all-out assault on the constitution of our country".

ANC secretary general Fikile Mbalula told AFP the party was having "exploratory discussions at the moment, we talk to everybody". He said the ANC hoped to achieve a deal "as fast as we can".

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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. 

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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.

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Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

If you go

The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road. 

The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.
 

Sam Smith

Where: du Arena, Abu Dhabi

When: Saturday November 24

Rating: 4/5

How much do leading UAE’s UK curriculum schools charge for Year 6?
  1. Nord Anglia International School (Dubai) – Dh85,032
  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
  4. Jumeirah English Speaking School (Dubai) – Dh59,728
  5. Gems Wellington International School – Dubai Branch – Dh58,488
  6. The British School Al Khubairat (Abu Dhabi) - Dh54,170
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Emergency phone numbers in the UAE

Estijaba – 8001717 –  number to call to request coronavirus testing

Ministry of Health and Prevention – 80011111

Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre

Emirates airline – 600555555

Etihad Airways – 600555666

Ambulance – 998

Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries

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The flights: South African Airways flies from Dubai International Airport with a stop in Johannesburg, with prices starting from around Dh4,000 return. Emirates can get you there with a stop in Lusaka from around Dh4,600 return.
The details: Visas are available for 247 Zambian kwacha or US$20 (Dh73) per person on arrival at Livingstone Airport. Single entry into Victoria Falls for international visitors costs 371 kwacha or $30 (Dh110). Microlight flights are available through Batoka Sky, with 15-minute flights costing 2,265 kwacha (Dh680).
Accommodation: The Royal Livingstone Victoria Falls Hotel by Anantara is an ideal place to stay, within walking distance of the falls and right on the Zambezi River. Rooms here start from 6,635 kwacha (Dh2,398) per night, including breakfast, taxes and Wi-Fi. Water arrivals cost from 587 kwacha (Dh212) per person.

Updated: June 04, 2024, 4:49 AM