Iranian President Masoud Pezeshkian, left, and Mohammad Javad Zarif at an election campaign event in Tehran. Reuters
Iranian President Masoud Pezeshkian, left, and Mohammad Javad Zarif at an election campaign event in Tehran. Reuters
Iranian President Masoud Pezeshkian, left, and Mohammad Javad Zarif at an election campaign event in Tehran. Reuters
Iranian President Masoud Pezeshkian, left, and Mohammad Javad Zarif at an election campaign event in Tehran. Reuters

Iran's Pezeshkian names 2015 nuclear deal negotiator Zarif as Vice President


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Former Iranian foreign minister and 2015 nuclear deal negotiator Mohammad Javad Zarif has been appointed as Vice President for Strategic Affairs by Iran's new reformist President Masoud Pezeshkian.

Mr Pezeshkian has aligned himself with other reformists and moderates and has often been alongside Mr Zarif, who is the President's main advocate and has been involved in the selection process for the cabinet.

Mr Zarif, who served as foreign minister from 2013 to 2021 under the presidency of Hassan Rouhani, rose to prominence as he led Iran's negotiations over the 2015 nuclear deal with world powers.

"You are tasked with overseeing major national and international developments, as well as how far we succeed in achieving the goals of the constitution," Mr Pezeshkian told Mr Zarif in a letter of appointment published by the Irna news agency on Thursday evening.

In 2018, the Trump administration unilaterally withdrew the US from the deal, which included Russia, China, France, the UK and Germany. Western powers have since accused Iran of expanding its nuclear programme and enriching uranium to 60 per cent, which is near weapons-grade levels.

The US has imposed several economic sanctions on the country.

Iran resumed nuclear talks with western powers in 2021 under the presidency of Ebrahim Raisi, who was killed in a helicopter crash in May. The meetings failed to revive the agreement.

Mr Pezeshkian, who has come to power at a time when Iran faces domestic challenges, has vowed to introduce reforms. Mr Zarif's appointment could be further indication of a willingness to return to negotiations on Iran's nuclear programme.

Mr Zarif has generally advocated better relations with western countries and has backed negotiations with the US, but he returns to government at a time of escalating tension in the region, worsened by the assassination of Hamas leader Ismail Haniyeh in Tehran. Mr Haniyeh was in Iran to attend Mr Pezeshkian's inauguration ceremony.

Mr Zarif was at the centre of controversy in 2021, when he was heard in leaked audio recordings laying out power struggles within the regime and criticising Iranian commander Qassem Suleimani, who was killed in a US drone strike in 2020. The leak sent shock waves through Iran a month before Mr Zarif was set to run in presidential elections and drew criticism from the country's supreme leader Ayatollah Ali Khamenei.

Although refraining from naming Mr Zarif directly, Mr Khamenei described the recordings as a "big mistake that must not be made by an official". Mr Zarif offered a direct and extensive apology.

Mr Zarif recently endorsed Mr Khamenei’s stance on upholding a controversial law regarding nuclear negotiations. “Regardless of personal views, the Strategic Action Law regarding nuclear negotiations is the country’s law and must be adhered to,” he said on X.

The law was introduced in 2020 to counter sanctions and increase nuclear activities unless the US returned to the deal. Although criticised by moderates as being an obstacle to returning to nuclear talks, Mr Khamenei last week emphasised the importance of adhering to the law.

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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'Worse than a prison sentence'

Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.

“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.

“They were living in perpetual mystery as to how their futures would pan out, and what that would be.

“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.

“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.

“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”

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Updated: August 02, 2024, 8:53 AM