New Republican Senate majority leader pick a rare blow to Trump after electoral victory

Republicans in the US Senate, who are preparing to take control of the congressional chamber after last week's elections, have chosen John Thune as their new majority leader. Mr Thune is set to replace veteran politician Senator Mitch McConnell, who has served as the conservative party's leader for nearly two decades.

It is the turning of a new leaf for a party at the forefront of a sea change in Washington, but for president-elect Donald Trump's “Make America Great Again” movement, Mr Thune's victory is a rare stumbling block.

The 63-year-old South Dakota senator is seen as a fair-minded institutionalist with leadership experience under his belt - in fact, he is already the chamber's number-two Republican.

The Maga branch of the party had been decrying Mr Thune as a symbol of the old guard of conservatism, arguing his ascension would thwart the president-elect's plans.

Trump allies like tech billionaire Elon Musk, former third-party candidate Robert F Kennedy Jr and right-wing media persona Tucker Carlson had endorsed hardline Florida Senator Rick Scott.

“Hours after Donald Trump wins the most conclusive mandate in 40 years, Mitch McConnell engineers a coup against his agenda by calling early leadership elections in the senate,” Carlson posted on X, adding the leadership election “will determine whether or not the new administration succeeds".

"Rick Scott of Florida is the only candidate who agrees with Donald Trump."

But Mr Scott was ousted by the party in its first round of closed-door voting on Tuesday, ultimately leaving the choice between Mr Thune and another like-minded conservative Senator John Cornyn.

Mr Thune vowed in a statement, however, that the new guard of leadership in the congressional chamber is “united behind President Trump's agenda, and our work starts today”.

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The Abu Dhabi Awards explained:

What are the awards? They honour anyone who has made a contribution to life in Abu Dhabi.

Are they open to only Emiratis? The awards are open to anyone, regardless of age or nationality, living anywhere in the world.

When do nominations close? The process concludes on December 31.

How do I nominate someone? Through the website.

When is the ceremony? The awards event will take place early next year.

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

Company profile

Name: Dukkantek

Started: January 2021

Founders: Sanad Yaghi, Ali Al Sayegh and Shadi Joulani

Based: UAE

Number of employees: 140

Sector: B2B Vertical SaaS(software as a service)

Investment: $5.2 million

Funding stage: Seed round

Investors: Global Founders Capital, Colle Capital Partners, Wamda Capital, Plug and Play, Comma Capital, Nowais Capital, Annex Investments and AMK Investment Office