Hichem Jamel, 37, is one of a few young men employed in his town of Dachret Jamal in Tunisia. Erin Clare Brown / The National
Hichem Jamel, 37, is one of a few young men employed in his town of Dachret Jamal in Tunisia. Erin Clare Brown / The National
Hichem Jamel, 37, is one of a few young men employed in his town of Dachret Jamal in Tunisia. Erin Clare Brown / The National
Hichem Jamel, 37, is one of a few young men employed in his town of Dachret Jamal in Tunisia. Erin Clare Brown / The National


Tunisia's deadline for good governance


  • English
  • Arabic

August 24, 2021

A month ago, on July 25, Kais Saied, President of Tunisia, dismissed the country’s government and took over executive powers, pledging to improve governance and clean up corruption in a country with a population of nearly 12 million.

Mr Saied said last month he would appoint a new government in 30 days and lay out a roadmap for the political future of the country. But even as he has extended today's deadline, he maintains the support of the majority of Tunisians. As one of his supporters told The National, thinking that more than 30 years of corruption could be rooted out in 30 days would be naive. In a poll last month, 87 per cent of Tunisians supported Mr Saied's dismissal of the government, even as political rivals such as Tunisia's Islamist party, Ennahda, decried it as a coup.

The fact is that many Tunisians are long past the hopes they pinned on the political system formed in the wake of their country’s uprising in 2011. Facing budget deficits and the value of their life savings dipping, Tunisians need good governance and stable leadership. Like many around the Arab world, the Tunisian people understand the link between good governance and prosperity.

Mr Saied, 63, a former law professor, was elected by a huge margin in 2019. His no-frills election campaign – which forewent even air conditioners and chairs – was unlike those of other political parties. Mr Saied went door to door and ran on a message of integrity and anti-corruption, which resonated especially well among young voters.

Since last month, he has vowed to get to the bottom of allegations of $4.8bn of public money being plundered by officials. Mr Saied reportedly wants to overhaul the state apparatus and put an end to the political polarisation that has proliferated during the past decade in Tunisia. And he has shown that he means business: just last week he sacked 14 officials high up in the phosphate industry, including a director and procurement head at the ministry. Once one of the biggest producers of phosphate, Tunisia's mineral yield has declined from about 8 mn tonnes in 2010 to 3 mn last year. Intolerant of graft, Mr Saied has since frozen Parliament, appointed new interim caretakers in key ministries, particularly the interior ministry, and picked a new intelligence chief.

This sends a message of seriousness and strong decision-making to people even as they wait to see whether the new government, when it is installed, will live up to expectations. The mishandling of the Covid-19 pandemic by the now-suspended government pushed people to pin their hopes on Mr Saied, who represents a future they want and deserve. With an unemployment rate of over 17 per cent, distraught Tunisians feel they have, over the years, been dealt a raw deal. They are disinclined to put up with any further mismanagement and draining of national resources.

Those who oppose Mr Saied’s plans complain that he has not been as transparent as he could be about the steps he will take. His government has demonstrated its ability to communicate and organise well in other areas – for example, its recent response to the Covid-19 pandemic. Mass vaccination drives progressed well in the past few weeks. On Saturday, nearly 600,000 people received a jab, and earlier in August, nearly five per cent of the population was inoculated in a single day – bolstered by 47 tonnes of medical supplies sent by the UAE.

Tunisians see in Mr Saied a man to get the house in order and end the corruption and political malaise. The challenge will be whether he can deliver in such challenging circumstances. Setting a clear road map and picking the right people to be in his governing team will be vital in order to deliver.

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

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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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Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

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GOLF’S RAHMBO

- 5 wins in 22 months as pro
- Three wins in past 10 starts
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- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
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if you go

The flights

Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.

The hotel

Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.

The tour

Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg

Specs

Engine: Dual-motor all-wheel-drive electric

Range: Up to 610km

Power: 905hp

Torque: 985Nm

Price: From Dh439,000

Available: Now

Updated: August 24, 2021, 5:08 AM