Insight and opinion from The National’s editorial leadership
July 13, 2022
In a speech broadcast on television and radio across the UAE on Wednesday, President Sheikh Mohamed bin Zayed outlined his vision for the country. It was the first such televised address since he was elected President in May, following the death of Sheikh Khalifa. Sheikh Mohamed stressed the importance of the foundations that Sheikh Khalifa, and the Founding Father Sheikh Zayed, had laid for the UAE’s bright future.
At the centre of Sheikh Mohamed’s vision, he made clear, is the UAE’s people.
“We are fortunate to have a nation of such people who, before and after the union, and even through difficult times, have proven their spirit and determination to overcome the toughest challenges,” he said. “Equally, we deeply appreciate the valued role of our residents who consider this country their second home, and their continued contributions in building and developing the UAE since its union.”
Since the UAE was founded in 1971, its population has grown at an impressive rate, in tandem with its economy. Today, the country numbers nearly 10 million people, who enjoy one of the highest standards of living in the region and, indeed, the world.
Achieving this level of development at such pace is impossible without the state’s earnest investment in the potential of its people. In the UAE, it has done so by expanding education and employment opportunities to all of its citizens, developing knowledge in science and technology, attracting residents with diverse and unique skill sets from a global pool of talent, and pursuing an aggressive economic diversification strategy that has set the stage for a strong post-oil future.
Achieving this level of development at such pace is impossible without earnest investment in the potential of the UAE's people
“Striving to empower [the people of the UAE],” Sheikh Mohamed said, “has always been and continues to be our nation’s top priority. Ensuring our people have everything they need to live fulfilled, comfortable and happy lives remains the basis of all our future plans.”
Sheikh Mohamed also noted the role of the private sector, which he described as “pivotal” to the growth of a robust and diverse economy.
Equally important, however, is Sheikh Mohamed’s emphasis on building a tolerant and open society that the UAE can be proud of on the world stage. It is a mission he inherited from Sheikh Khalifa, who in turn inherited it from Sheikh Zayed. Thus far, it has been an enormous success, with the UAE becoming a society that draws on Islamic values of tolerance and compassion to create a country in which people from all kinds of backgrounds can thrive.
Turning that model into an example for others is also a priority. In his speech, Sheikh Mohamed reaffirmed the UAE’s desire to “champion peace and stability in our region and the wider world, supporting others and advocating for wisdom and co-operation for the good of mankind”. He described Sheikh Zayed’s approach of strengthening the UAE’s “role among the world’s leading countries by providing humanitarian aid, and by continuing to extend a helping hand to communities in need around the world, irrespective of religion or race”.
Most clear in Sheikh Mohamed’s address was his confidence in the UAE’s ability to build on its achievements, and to achieve so much more in the future, not just because its ambitions are drawn from modern ideals, but most of all because they are firmly rooted in the country’s long-standing traditions.
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
Founded 50 years ago as a nuclear research institute, scientists at the centre believed nuclear would be the “solution for everything”.
Although they still do, they discovered in 1955 that the Netherlands had a lot of natural gas. “We still had the idea that, by 2000, it would all be nuclear,” said Harm Jeeninga, director of business and programme development at the centre.
"In the 1990s, we found out about global warming so we focused on energy savings and tackling the greenhouse gas effect.”
The energy centre’s research focuses on biomass, energy efficiency, the environment, wind and solar, as well as energy engineering and socio-economic research.
Fight Night
FIGHT NIGHT
Four title fights:
Amir Khan v Billy Dib - WBC International title
Hughie Fury v Samuel Peter - Heavyweight co-main event
Dave Penalosa v Lerato Dlamini - WBC Silver title
Prince Patel v Michell Banquiz - IBO World title
Six undercard bouts:
Michael Hennessy Jr v Abdul Julaidan Fatah
Amandeep Singh v Shakhobidin Zoirov
Zuhayr Al Qahtani v Farhad Hazratzada
Lolito Sonsona v Isack Junior
Rodrigo Caraballo v Sajid Abid
Ali Kiydin v Hemi Ahio
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Azhar Ali (capt), Shan Masood, Abid Ali, Imam-ul-Haq, Asad Shafiq, Babar Azam, Fawad Alam, Haris Sohail, Imran Khan, Kashif Bhatti, Mohammad Rizwan (wk), Naseem Shah, Shaheen Shah Afridi, Mohammad Abbas, Yasir Shah, Usman Shinwari
ASHES SCHEDULE
First Test
November 23-27 (The Gabba, Brisbane) Second Test
December 2-6 (Adelaide Oval, Adelaide) Third Test
December 14-18 (Waca Ground, Perth) Fourth Test
December 26-30 (Melbourne Cricket Ground, Melbourne) Fifth Test
January 4-8, 2018 (Sydney Cricket Ground, Sydney)
Citadel: Honey Bunny first episode
Directors: Raj & DK
Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
Brief scores:
Everton 2
Walcott 21', Sigurdsson 51'
Tottenham 6
Son 27', 61', Alli 35', Kane 42', 74', Eriksen 48'
Man of the Match: Son Heung-min (Tottenham Hotspur)