• Israeli Prime Minister Benjamin Netanyahu will meet US President Donald Trump in Florida on Monday, with the US pushing to move to the next stage of the fragile Gaza truce plan. The crucial meeting at Mr Trump's Mar-a-Lago resort will also focus on Iran.
  • The UN Security Council will hold an emergency meeting on Monday to discuss Israel’s surprise recognition of Somaliland. Somalia, which will assume the council presidency in January, requested the meeting after Israel announced the move on Friday.
  • A growing number of countries and international organisations have condemned Israel’s decision. The Arab League affirmed that the illegal recognition constitutes an attack on "Arab national security" and an attempt to undermine regional and international security and peace.
  • Israeli presence in Somaliland will be considered a “military target,” Yemen's Iran-backed Houthi rebels warned. “We consider any Israeli presence in Somaliland a military target for our armed forces, as it constitutes aggression against Somalia and Yemen, and a threat to the security of the region,” said the group's chief Abdulmalik Al Houthi.
  • Yemen’s Presidential Leadership Council chief Rashad Al Alimi said the government had formally asked the Saudi-led coalition to take “immediate measures” to counter recent military moves by the Southern Transitional Council.
  • Violence broke out on Sunday as thousands of protesters from Syria's Alawite minority took to the streets in coastal and central parts of the country, two days after a mosque bombing killed eight people. State news agency Sana reported that three people were killed and 60 were wounded in attacks on security forces and civilians “by remnants of the defunct regime” during the protests in the coastal city of Latakia.
  • Seven Turkish police officers were injured during a clash with suspected ISIS militants in northwest Turkey's Yalova province on Monday, state broadcaster TRT Haber reported.
  • Syria has said that three people were rescued and four are missing after they illegally attempted to cross a river on the Syrian-Lebanese border. The incident occurred near the villages of Al Shabruniyeh and Al Dabbousiyeh, close to the town of Talkalakh in western Homs province.
  • Iraq's National Political Council, comprising the country's Sunni parliamentary blocs, nominated the Taqadum Party's Haibat Al Halbousi as the candidate for Speaker of Parliament ahead of the first session of the legislature's newly elected term, scheduled for Monday.
  • A Palestinian child drowned after falling into a water-filled ditch as winter storms battered the Gaza Strip. Atta Mamoun, 7, from Beit Lahia, fell into a crevice created by heavy rainfall.
  • A 2.9-magnitude earthquake was recorded south of the Omani exclave of Musandam and was “slightly felt” in the UAE. The National Centre of Meteorology (NCM) said the earthquake occurred at a depth of 5km.
  • The UAE and Norway have joined forces to increase humanitarian aid efforts for refugees beset by conflict in East Africa. The UAE International Aid Agency signed a co-operation agreement with the Norwegian Refugee Council to provide additional support to displaced citizens and to assist host communities for refugees in Ethiopia, Uganda, and other countries in the region.
  • Trump meets Netanyahu in Florida
  • UN Security Council discusses Somaliland
  • Iraq's new parliament holds first session

This newsletter was compiled by Mohamad Ali Harisi, Foreign Editor.

The National produces a variety of newsletters across an array of subjects. To get the best of our coverage straight to your inbox, sign up to them here.

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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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