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President Sheikh Mohamed meets Antony Blinken on official US visit

UAE leader discusses strategic relations with US Secretary of State

Tom Evans

September 24, 2024

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  • Arabic

President Sheikh Mohamed met US Secretary of State Antony Blinken and National Security Adviser Jake Sullivan as part of his official US visit on Tuesday.

During the meetings, he discussed strategic relations and joint efforts to strengthen relations at various levels, state news agency Wam reports. Particular focus was placed on developments in the Middle East, and the importance of working to prevent the expansion of the war in Gaza.

The meeting with Mr Sullivan was also attended by Sheikh Tahnoun bin Zayed, Deputy Ruler of Abu Dhabi and National Security Adviser, Sheikh Abdullah bin Zayed, Deputy Prime Minister and Minister of Foreign Affairs, and Sheikh Mohammed bin Hamad bin Tahnoun, Adviser for Special Affairs at the Presidential Court.

US President Joe Biden welcomed Sheikh Mohamed to the White House on Monday for the first meeting between sitting UAE and US presidents on American soil since the Emirates was founded in 1971.

Sheikh Mohamed emphasised the country's “unwavering commitment” to its relations with the US. He spoke of the “power of partnerships” during the talks and said he looked forward to discussing relations between their countries.

A joint statement was later released, with a focus on business, climate, foreign policy and space exploration.

On Sunday, Sheikh Mohamed visited the Children's National Hospital in Washington and was given a tour as he was briefed on the hospital’s specialised departments.

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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Essentials

The flights
Etihad and Emirates fly direct from the UAE to Delhi from about Dh950 return including taxes.
The hotels
Double rooms at Tijara Fort-Palace cost from 6,670 rupees (Dh377), including breakfast.
Doubles at Fort Bishangarh cost from 29,030 rupees (Dh1,641), including breakfast. Doubles at Narendra Bhawan cost from 15,360 rupees (Dh869). Doubles at Chanoud Garh cost from 19,840 rupees (Dh1,122), full board. Doubles at Fort Begu cost from 10,000 rupees (Dh565), including breakfast.
The tours 
Amar Grover travelled with Wild Frontiers. A tailor-made, nine-day itinerary via New Delhi, with one night in Tijara and two nights in each of the remaining properties, including car/driver, costs from £1,445 (Dh6,968) per person.

Updated: September 24, 2024, 7:32 PM
Sheikh Mohamed bin ZayedUAEUS