Chinese President Xi Jinping hosting the 14th BRICS Summit via video link. AP
Chinese President Xi Jinping hosting the 14th BRICS Summit via video link. AP
Chinese President Xi Jinping hosting the 14th BRICS Summit via video link. AP
Chinese President Xi Jinping hosting the 14th BRICS Summit via video link. AP


G7, Brics and Nato: June is pivotal for international diplomacy


  • English
  • Arabic

June 27, 2022

This year's G7 summit is taking place in the picturesque, highly secure and now familiar hotel Schloss Elmau, in Germany. It is the second time the meeting has been held there – the last in 2015.

While sombre international affairs are the focus, it is not just the content, but also the manner in which these issues are discussed that makes the event distinct. It is the most personal meeting its leaders have in the calendar, with limited, controlled media access and only the most important advisers present. Last year, pictures emerged of its attendees eating ice cream with little social distancing on a beach in the British county of Cornwall. More than just a sign of closeness, it was a marker that the world was beginning to reopen after the worst of Covid-19.

In 2022, the location might be the same as 2015, but the world is not, and not just due to the pandemic. Up for discussion this year is the conflict in Ukraine and the vast international fallout from it, as well as other strategic issues confronting the group.

Furthermore, the G7 is not the only high-level multilateral event to take place this month. Brics, a summit involving Brazil, Russia, India, China and South Africa – countries that make up more than 40 per cent of the world's population – took place last week, under the theme: "Foster High-quality Brics Partnership, Usher in a New Era for Global Development".

Strong partnerships will be particularly important for Russian President Vladimir Putin. His country's invasion of Ukraine has put relations with the West at a historic low, ushering in unprecedented sanctions and what Russia claims to be a "proxy war" with Nato. Strong ties with countries such as India and China will be key to keeping the Russian economy afloat.

Mr Putin will be closely watching the coming Nato summit, which begins in Madrid on Tuesday and is the 32nd since the alliance’s establishment in 1949. In the run-up to the meeting, some of the members' leaders have already pushed for even more support to Ukraine, much to the consternation of Moscow. British Prime Minister Boris Johnson has told allies it would be a “disaster” to pressure Ukraine into accepting a “bad peace” deal. Ukrainian President Volodymyr Zelenskyy is expected to say the same in an address. Nato will also discuss the prospect of Sweden and Finland joining, a hugely important drive given the countries' strategic value, history of neutrality and Turkey's opposition to the move, due to the Nordic states' perceived tolerance of what Ankara describes as Kurdish separatists and terrorists. Nato Secretary General Jens Stoltenberg also said that "for the first time, we will address China and the challenges it poses to our interests, security and values".

On the international diplomatic stage, June might seem like an adversarial month. But however tense the situation might be, it is important to remember that all three of these events have at their heart some form of diplomacy and, at least in the eyes of members, a desire to make the world safer. All the above nations will need to co-operate if they are to deal with today's unprecedented difficulties, none more pressing than looming food and economic crises, which would affect the Middle East particularly. Whether it be finding a diplomatic solution to the war in Ukraine, or dialling down tensions in the South China Sea, such meetings are among the few international means left to promote harmony, not strife.

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Company%C2%A0profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3Eamana%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2010%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Karim%20Farra%20and%20Ziad%20Aboujeb%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EUAE%3Cbr%3E%3Cstrong%3ERegulator%3A%20%3C%2Fstrong%3EDFSA%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinancial%20services%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3E85%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESelf-funded%3Cbr%3E%3C%2Fp%3E%0A
'The Sky is Everywhere'

Director:Josephine Decker

Stars:Grace Kaufman, Pico Alexander, Jacques Colimon

Rating:2/5

Q&A with Dash Berlin

Welcome back. What was it like to return to RAK and to play for fans out here again?
It’s an amazing feeling to be back in the passionate UAE again. Seeing the fans having a great time that is what it’s all about.

You're currently touring the globe as part of your Legends of the Feels Tour. How important is it to you to include the Middle East in the schedule?
The tour is doing really well and is extensive and intensive at the same time travelling all over the globe. My Middle Eastern fans are very dear to me, it’s good to be back.

You mix tracks that people know and love, but you also have a visually impressive set too (graphics etc). Is that the secret recipe to Dash Berlin's live gigs?
People enjoying the combination of the music and visuals are the key factor in the success of the Legends Of The Feel tour 2018.

Have you had some time to explore Ras al Khaimah too? If so, what have you been up to?
Coming fresh out of Las Vegas where I continue my 7th annual year DJ residency at Marquee, I decided it was a perfect moment to catch some sun rays and enjoy the warm hospitality of Bab Al Bahr.

 

Naga
%3Cp%3E%3Cstrong%3EDirector%3A%C2%A0%3C%2Fstrong%3EMeshal%20Al%20Jaser%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%C2%A0%3C%2Fstrong%3EAdwa%20Bader%2C%20Yazeed%20Almajyul%2C%20Khalid%20Bin%20Shaddad%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E4%2F5%3C%2Fp%3E%0A
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: June 27, 2022, 11:17 AM