UAE pledges Dh220 million to support global efforts to fight Covid-19

The UAE has vowed to send Dh220 million ($60m) to support global efforts to address the Covid-19 pandemic and help prepare for future outbreaks.

Reem Al Hashimy, Minister of State for International Co-operation, pledged the money during the Global Covid-19 Summit, co-hosted by the US, Belize, Germany, Indonesia and Senegal.

The donation will include Dh36 million to provide easier testing kits and Dh183 million towards specialised medical supplies to combat the spread of Covid-19.

"The UAE has harnessed its logistical capacities to provide 136 countries with the necessary medical supplies to address the pandemic,” she said.

“The nation has fully supported the establishment of field hospitals in nine countries, in addition to the COVAX initiative with a donation of $50 million, to support the provision of vaccines to developing countries in an effective and accessible manner.

“The UAE, as a current member of the United Nations Security Council, will fulfil its pledge to increase its contributions to international cooperation and global health, by producing and supplying medicines and essential medical requirements.”

Ms Al Hashimy said the UAE was fully behind international efforts to curb the impact of any future pandemics or diseases that could threaten global safety.

The country was uniquely placed to offer insight on how to tackle the pandemic, given the success of its early testing programmes, she said.

“The UAE has shared the results of its genetic research on Covid-19 variants with the international community, which underscored the importance of continuing to coordinate efforts to enhance the values of human solidarity with everyone in need of support.”

She added that the UAE would continue to fulfill its pledge to increase its contributions to international co-operation and global health.

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

UAE pledges Dh220 million to support global efforts to fight Covid-19

Donation of $60 million made to thwart coronavirus and other variations

Ten tax points to be aware of in 2026