President Sheikh Mohamed received Indian Prime Minister Narendra Modi in Abu Dhabi on Tuesday.
Sheikh Mohamed welcomed Mr Modi at the Presidential Airport in Abu Dhabi, state news agency Wam reported.
The meeting took place as part of his two-day visit to the UAE, where he will address a crowd of 40,000 Indian citizens at Zayed Sports City Stadium.
Mr Modi is also due to speak at the World Governments Summit in Dubai on Wednesday, before inaugurating the first Hindu temple in Abu Dhabi later that day.
"Today I met with Indian Prime Minister Narendra Modi in Abu Dhabi, where we discussed ways to advance bilateral ties across diverse fields such as economy, investment, trade, energy and technology," Sheikh Mohamed said in a post shared to X.
"The UAE and India are united by our shared keenness to develop the bilateral strategic partnership to achieve further progress and build a better future for our peoples."
During the meeting, Sheikh Mohamed and Mr Modi also signed agreements aiming to strengthen partnerships between the two nations.
These included in areas of investment, trade, digital infrastructure projects, electrical connectivity, maritime transport, ports and railways.
The two leaders also agreed to establish a network for cross-border transfers and linking instant payment platforms, as well as a framework agreement on enabling an economic corridor between India, the Middle East and Europe.
The agreements were witnessed by Reem Al Hashimy, Minister of State for International Co-operation, and Vinay Mohan Kwatra, India's Foreign Secretary.
An official ceremony was held for his arrival on Tuesday, with the national anthems of both the UAE and India played.
The reception was attended by senior Emirati officials including Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister and Chairman of the Presidential Court; Sheikh Tahnoun bin Zayed, Deputy Ruler of Abu Dhabi and National Security Adviser; and Sheikh Saif bin Zayed, Deputy Prime Minister and Minister of Interior.
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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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