Iran's Pezeshkian congratulates Iraq on 'successful' elections

Iranian President Masoud Pezeshkian on Friday praised Iraq for completing "successful" parliamentary elections this week.

The country held its sixth general election on Tuesday since the fall of the Saddam Hussein regime in 2003. Iraqi Prime Minister Mohammed Shia Al Sudani's coalition, Reconstruction and Development, came first in the election, according to the Independent High Electoral Commission.

His coalition received 1.3 million votes in Tuesday's election, the commission said.

CommentWill Iraq be held hostage again or will its political leaders put the country first?

Mr Pezeshkian said the "results reflect the will of the people", during a phone call with Mr Al Sudani.

"President Pezeshkian congratulated Prime Minister Al Sudani and his political coalition, Reconstruction and Development, on securing first place in the national elections results," a statement by Mr Al Sudani's office said.

The Iranian president wished the Iraqi people "continued progress in their path to democratic nation-building and the achievement of comprehensive development."

The two leaders also discussed "bilateral relations and ways to further strengthen them in a manner that supports regional stability and serves the interests of both the Iraqi and Iranian people," according to the statement from Mr Al Sudani’s office.

Iraq has for years sought to balance the competing interests of its neighbour Iran and relations with the US.

Iran has enjoyed influence over Iraq's internal affairs since 2003 by installing Shiite allies in Baghdad's Parliament, as well as by supporting armed groups. But Tehran's regional clout has weakened after Israeli attacks inflicted heavy losses on regional proxies and on Iran itself in the two years since the Gaza war began.

The overall voter turnout in the elections reached 56.11 per cent, according to the commission.

“The voter turnout is clear evidence of another success, reflected in the restoration of confidence in the political system,” Mr Sudani said in a televised speech following the announcement of the initial results on Wednesday.

Top among the Tehran-aligned political parties and the armed factions was the former prime minister Nouri Al Maliki’s State of Law Coalition, the National State Forces Alliance led by Shiite cleric Ammar Al Hakim, the Badr List led by senior politician Hadi Al Amiri, and Al Sadiqoun List, which is linked to an armed faction led by Shiite cleric Qais Al Khazali.

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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

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The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

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