Sheikh Mohammed bin Rashid receives Eid Al Fitr greetings at Zabeel Palace

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, received festive greetings from guests on the first day of Eid Al Fitr.

Sheikh Mohammed was accompanied by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, and Sheikh Maktoum bin Mohammed, Deputy Ruler of Dubai and Deputy Prime Minister.

They received well-wishers, including sheikhs, ministers, local dignitaries, and senior officials, at the Zabeel Palace Majlis, Dubai Media Office said on Twitter.

Earlier in the day, Sheikh Hamdan and Sheikh Maktoum travelled to the capital, where they met members of Abu Dhabi's ruling family, other sheikhs and senior officials.

Sheikh Hamdan also posted a message on Instagram to wish his followers a happy Eid.

The Crown Prince shared an animated video with his 15.7 million followers.

In the video, a Dubai-branded hot-air balloon and a flock of birds fly over Downtown Dubai, before family snaps fill the screen.

Eid Al Fitr marks the end of the holy month of Ramadan. It is traditionally a time when Muslim families gather together to pray, eat and spend time with loved ones. Children also traditionally receive eidiyah — spending money to celebrate the occasion — that is distributed to them by older family members.

Over the past three years, the UAE has observed strict measures to curb the spread of Covid-19 during Eid Al Fitr.

This is the first year worshippers have been able to come together and celebrate the festival without precautionary measures such as social distancing or face masks.

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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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Sheikh Mohammed bin Rashid receives Eid Al Fitr greetings at Zabeel Palace

Sheikh Hamdan bin Mohammed also in attendance as ministers, foreign dignitaries and various sheikhs convey messages

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