Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Special Envoy for Climate Change, held talks with Sameh Shoukry, Foreign Minister of Egypt. Photo: Office of the UAE Special Envoy for Climate Change
Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Special Envoy for Climate Change, held talks with Sameh Shoukry, Foreign Minister of Egypt. Photo: Office of the UAE Special Envoy for Climate Change
Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Special Envoy for Climate Change, held talks with Sameh Shoukry, Foreign Minister of Egypt. Photo: Office of the UAE Special Envoy for Climate Change
Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Special Envoy for Climate Change, held talks with Sameh Shoukry, Foreign Minister of Egypt. Photo: Office of the UAE Special Envoy

UAE's climate envoy holds talks with Egypt's foreign minister over Cop27


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The UAE's climate change envoy talked of common goals with Egypt's foreign minister as the Middle East neighbours prepare to host a major global environment summit over the next two years.

The UN Climate Change Conference 2022 — known as Cop27 — will be held in Sharm El Sheikh, Egypt, in November, with the UAE staging the event in 2023.

Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Special Envoy for Climate Change, said he enjoyed encouraging talks with Sameh Shoukry, who will also act as president-designate for Cop27.

"It was a pleasure to meet with Sameh Shoukry, Foreign Minister of Egypt and Cop27 President-designate at Cop27," Dr Al Jaber wrote on Twitter.

"We had a positive discussion on common priorities and cooperation towards a successful Cop27 in Sharm El Sheikh."

The two countries were selected to carry the baton for the global fight to safeguard the planet following Cop26 in Glasgow in November.

Dr Al Jaber said at the time that the UAE's hosting of the event in 2023 was a significant moment.

“The UAE views this trust as a grand responsibility, particularly as the Cop in 2023 will be a juncture and a very important landmark after the Paris Agreement, as it will witness the first stocktake of national contributions,” said Dr Al Jaber.

“As well as pushing forward climate action, we will continue working to build on the achievements made in the previous meetings and conferences, guided by our great leadership that focuses on building bridges and making partnerships, as well as adopting a comprehensive and positive approach.”

Cop26 - in pictures

  • Espen Barth Eide – Norway. Getty Images
    Espen Barth Eide – Norway. Getty Images
  • Dr Jeanne d'Arc Mujawamariya – Rwanda. Rwanda Green Fund / Flickr
    Dr Jeanne d'Arc Mujawamariya – Rwanda. Rwanda Green Fund / Flickr
  • Aminath Shauna – Maldives. Getty Images
    Aminath Shauna – Maldives. Getty Images
  • Dan Jorgensen – Denmark. Getty Images
    Dan Jorgensen – Denmark. Getty Images
  • Yasmine Fouad – Egypt. AFP
    Yasmine Fouad – Egypt. AFP
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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  2. Kings School Al Barsha (Dubai) – Dh71,905
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Entrance to the Harry Potter exhibition at the House of MinaLima is free
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Updated: April 24, 2022, 4:25 PM