Iranian President Masoud Pezeshkian, second right, with the head of the country's Aatomic Energy Organisation, Mohammad Eslami, right, at an exhibition of Iranian nuclear achievements in Tehran. AP
Iranian President Masoud Pezeshkian, second right, with the head of the country's Aatomic Energy Organisation, Mohammad Eslami, right, at an exhibition of Iranian nuclear achievements in Tehran. AP
Iranian President Masoud Pezeshkian, second right, with the head of the country's Aatomic Energy Organisation, Mohammad Eslami, right, at an exhibition of Iranian nuclear achievements in Tehran. AP
Iranian President Masoud Pezeshkian, second right, with the head of the country's Aatomic Energy Organisation, Mohammad Eslami, right, at an exhibition of Iranian nuclear achievements in Tehran. AP

Iranian President says Tehran does not seek nuclear weapons, but will still pursue energy ambitions


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Iranian President Masoud Pezeshkian on Monday said Iran did not intend to develop nuclear weapons but would pursue its right to nuclear energy, as conflict with Israel entered its fourth day.

In an address to parliament, he said "they are sitting and saying that Iran should not obtain nuclear weapons, while we have no intention of obtaining these weapons at all", an apparent reference to Israel and western countries that have long accused Tehran of seeking nuclear weapons.

"We have the right to benefit from nuclear energy and research that benefits this society, and no one has the right to take this right," Mr Pezeshkian added.

Tehran has long maintained that its nuclear programme is for civilian purposes only. UN inspectors said they could not verify that claim and the US and Europe have accused Iran of enriching uranium close to weapons-grade levels.

"We were engaged in negotiations and encountered aggression during the diplomatic process,” Iranian Foreign Ministry Spokesperson Esmaeil Baghaei said in his first briefing since the latest conflict broke out.

“With this action of the Zionist regime, which we cannot imagine without the support of America, they practically made the negotiation process meaningless,” he added.

US President Donald Trump abandoned a deal in 2018 that limited Iran's uranium enrichment. The US and Iran have held five rounds of talks since April to try to find a path to a new accord. A sixth round of talks was scheduled for Sunday but did not take place because of the escalation between Israel and Iran.

Israel launched a surprise attack on Iran on Friday morning, sparking the most intense conflict yet between the countries and provoking fears of a lengthy war that could engulf the Middle East. Iran has launched retaliatory missile and drone attacks, causing significant destruction in major cities such as Tel Aviv and Haifa.

Israel says its attacks have hit military and nuclear sites, and killed many senior commanders and scientists. "Does the scientist of this country have a gun in his hand and a bomb? If we did not have these missiles now, Israel would easily hit wherever it wanted every day," Mr Pezeshkian said.

Mr Trump told Israel to back down from a plan to kill Iranian supreme leader Ayatollah Ali Khamenei, Reuters quoted a senior US official as saying. Israeli Prime Minister Benjamin Netanyahu has hinted that regime change could be an outcome of its attacks on Iran.

Mr Pezeshkian called for national unity and urged citizens to put aside their differences amid the latest fighting. "Every difference, issue, and problem that has existed must be put aside today and we must stand strong against this genocidal criminal aggression with unity and coherence," he said in his parliamentary address.

Iranian officials attempted to emphasise diplomacy, knowing that Israel favoured military options, and the US threatened action should nuclear talks collapse. In the following weeks, Iranian officials and observers made clear that they believed Israel wanted to launch strikes, but that any attack could not take place without the knowledge and backing of the US.

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: June 16, 2025, 8:58 AM