Taliban forces on patrol in Kabul in 2021, a day after the withdrawal of US troops. Reuters
Taliban forces on patrol in Kabul in 2021, a day after the withdrawal of US troops. Reuters
Taliban forces on patrol in Kabul in 2021, a day after the withdrawal of US troops. Reuters
Taliban forces on patrol in Kabul in 2021, a day after the withdrawal of US troops. Reuters

US considering foreign terrorist designation for Taliban


Sara Ruthven
  • English
  • Arabic

US Secretary of State Marco Rubio on Wednesday told the House foreign affairs committee that the US was reviewing whether to designate the Taliban as a Foreign Terrorist Organisation.

Mr Rubio was on Capitol Hill testifying before the House of Representatives committee on the proposed State Department budget.

The Taliban are identified as a Specially Designated Global Terrorist group in the US. An FTO designation comes with more stringent sanctions.

FTO sanctions freeze the assets of the designated group. They differ from SDGT designations in that they make it a crime to provide “material support or resources” to a designated group; members of an FTO are automatically inadmissible to the US; and victims of terrorist attacks and their survivors are able to file civil lawsuits against FTOs and the entities that support them, according to the Atlantic Council think tank.

The Taliban have ruled Afghanistan since 2021, retaking power after the chaotic US withdrawal.

Since they returned to power, the Taliban have reinstated their strict interpretation of Islamic law. They have essentially erased women and girls from public life, from schools to journalism to public parks, and have removed protection for minority ethnic and religious groups.

But critics have said an FTO designation often has the unintended consequence of obstructing the flow of humanitarian aid. Even before the US withdrawal, Afghanistan was a major recipient of US and other foreign aid, and the assistance continues to help prop up its economy.

Mr Rubio's comments come after the US announced Afghanistan would be removed from the list of countries whose citizens have Temporary Protected Status.

The Department of Homeland Security said that “conditions in Afghanistan no longer meet the statutory requirements” for TPS, which provides protection from deportation as well as the ability to work in the US to citizens of countries experiencing conflict or other crises.

“This administration is returning TPS to its original temporary intent,” said Department of Homeland Security Secretary Kristi Noem. “Afghanistan has had an improved security situation, and its stabilising economy no longer prevents them from returning to their home country.”

The biog

Favourite films: Casablanca and Lawrence of Arabia

Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins

Favourite dish: Grilled fish

Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.

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: May 22, 2025, 8:26 AM