After nearly a decade of war, Syria is crumbling under the weight of a repressive, corrupt ruling elite, a pandemic and an economic downslide compounded by western sanctions. AP Photo
After nearly a decade of war, Syria is crumbling under the weight of a repressive, corrupt ruling elite, a pandemic and an economic downslide compounded by western sanctions. AP Photo
After nearly a decade of war, Syria is crumbling under the weight of a repressive, corrupt ruling elite, a pandemic and an economic downslide compounded by western sanctions. AP Photo
After nearly a decade of war, Syria is crumbling under the weight of a repressive, corrupt ruling elite, a pandemic and an economic downslide compounded by western sanctions. AP Photo

Caesar Act: a bittersweet victory for Syrians


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Today, the Caesar Act, a bill imposing sanctions on the Syrian regime and those who co-operate with it, has come into effect. Approved by the US Congress last December, the legislation is named after the Syrian photographer who bravely smuggled 55,000 images documenting torture in regime prisons.

This is the first time Damascus is sanctioned by the US on the basis of human rights violations rather than threats to American national security. Syria has also occupied a consistent place on the US list of state sponsors of terrorism since 1979, longer than any other country. Five decades of Al Assad family rule over Syria have done little to improve its international standing.

For the Syrians who have long suffered under the weight of the Assad regime, the Caesar Act is a bittersweet victory. As much as a third of the population has been pushed into exile by the country’s ongoing conflict, with many unable to come back for fear of persecution. But for those who remain in Syria, the prospect of additional sanctions is unnerving. Measures that punish the entire economy, rather than individual leaders, can destroy lives, livelihoods and hopes for wider prosperity.

Economic sanctions on rogue states are a diplomatic tool of last resort. They are intended to push governments stubborn in their insistence on abusing their own people – and others elsewhere – into compliance with international law and norms. After nine years of bloodshed, the Syrian regime still shows no sign of backing down. And now, its population is on the brink of starvation, according to the World Food Programme.

Pro-regime groups in Syria and Lebanon claim that economic collapse was not brought on by a mismanagement or corruption, but rather that it is the fruit of US sanctions. In truth, the situation had been rapidly deteriorating for years. Since November 2019, a banking crisis in Lebanon – the country through which Syria accesses the global economy – has taken a toll on the currencies of both nations, and limited Damascus's access to dollars. This has stifled Syria's ability to import basic necessities.

For decades, Lebanese activists have decried the widespread economic mismanagement and corruption that have wreaked havoc on their country’s finances. In Syria, where more than 85 per cent of the population lives in poverty, the situation is even worse. The regime has been able to survive 50 years of sanctions only by circumventing the international system with the help of allies in Lebanon and overt support from heavily-sanctioned Iran.

For the Syrians who have long suffered under the weight of the Assad regime, the Caesar Act is a bittersweet victory

The Caesar Act is meant to help bring about an end to this paradigm. But on its own, the legislation will not be enough. The international community must find ways to ensure that those who suffer the most in Syria do not see their lives destroyed irreparably. The country’s refugees and internally displaced people must be cared for. And as authorities start to clamp down on protesters in Suwaida, and the rights of Lebanese demonstrators are increasingly jeopardised, efforts must be made to protect and empower those risking their lives to exert pressure on their governments from within.

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- set out well ahead of time

- make sure you have at least Dh15 on you Nol card, as there could be big queues for top-up machines

- enter the right cabin. The train may be too busy to move between carriages once you're on

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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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