The Turkish president Recep Tayyip Erdogan envisioned the reformulation of power years ago while he was still the prime minister. Presidential Press Service via AP Photo
The Turkish president Recep Tayyip Erdogan envisioned the reformulation of power years ago while he was still the prime minister. Presidential Press Service via AP Photo
The Turkish president Recep Tayyip Erdogan envisioned the reformulation of power years ago while he was still the prime minister. Presidential Press Service via AP Photo
The Turkish president Recep Tayyip Erdogan envisioned the reformulation of power years ago while he was still the prime minister. Presidential Press Service via AP Photo

Will Erdogan get his way?


  • English
  • Arabic

After last year’s shock political events around the world, it is clear that popular referendums have the power to radically change the complexion of politics around the world. In Turkey, the ruling AKP has began a campaign to amend the constitution. The Turkish people will vote on a referendum in April that would eliminate the position of prime minister and expand the powers of the Turkish president.

This campaign doesn’t come out of thin air. President Recep Tayyip Erdogan envisioned the reformulation of power years ago while he was still prime minister. The most powerful politician since Mustafa Kemal Ataturk – the founder of the modern republic – Mr Erdogan has consolidated his hold over the country through a decade-long campaign of silencing critics and removing all political challenges. The preferred destination of Mr Erdogan’s campaign is to expand presidential power so that he can stay in control until 2029.

Mr Erdogan’s plans have not been without complications. His policy of backing rebels in the Syrian civil war has largely backfired. Turkey has been hit by a series of deadly terror attacks, including the shooting of the Russian ambassador in Ankara last December. The economy, once a bright spot among emerging markets around the world, has been struggling as the tourism sector has fallen apart. The referendum to extend presidential powers has also put Ankara’s bid to join the European Union in serious jeopardy.

In the Turkish heartlands, however, support for Mr Erdogan and his party, the AKP, remains strong. This base of supporters, which remains the single most important voting bloc, believes that Mr Erdogan’s strongman approach to problems is the right path forward. Whether or not they are correct remains to be seen, but it clear that Turkey is facing several serious challenges that will require a hefty dose of political unity. Recent history suggests that we should be prepared for any result in April. This region and the world will be paying very close attention.

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

Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ENamara%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EJune%202022%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3EMohammed%20Alnamara%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%20%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EMicrofinance%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3E16%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESeries%20A%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFamily%20offices%0D%3Cbr%3E%3C%2Fp%3E%0A
Infiniti QX80 specs

Engine: twin-turbocharged 3.5-liter V6

Power: 450hp

Torque: 700Nm

Price: From Dh450,000, Autograph model from Dh510,000

Available: Now

Notable cricketers and political careers
  • India: Kirti Azad, Navjot Sidhu and Gautam Gambhir (rumoured)
  • Pakistan: Imran Khan and Shahid Afridi (rumoured)
  • Sri Lanka: Arjuna Ranatunga, Sanath Jayasuriya, Tillakaratne Dilshan (rumoured)
  • Bangladesh (Mashrafe Mortaza)