Emirati citizens will be able to travel visa-free to Japan under a partnership signed on Wednesday that aims to strengthen bilateral relations.
The strategic agreement aims to encourage more diplomatic, economic and political participation, trade, and investment between the two countries.
It was signed in Tokyo by Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and the UAE's special envoy to Japan, and Yoshimasa Hayashi, Japan's Minister of Foreign Affairs.
Dr Al Jaber said the deal will encourage more tourism, cultural and academic exchanges between the two nations, in addition to encouraging new opportunities for business, trade and investment.
The date of the exemption from entry-visa requirements will be announced in due course, state news agency Wam reported.
The partnership agreement was launched during a meeting on Monday between a UAE delegation, led by Sheikh Khaled bin Mohamed, member of the Abu Dhabi Executive Council and chairman of the Abu Dhabi Executive Office, and Japanese Prime Minister Fumio Kishida.
Details of the agreement were announced in 2018 when Shinzo Abe, prime minister at the time, visited Abu Dhabi.
The main areas of partnership cover co-operation in the political and diplomatic field, including bilateral and multilateral co-operation.
It also includes co-operation in the provision of development and humanitarian assistance, co-operation in the field of economy, trade, energy and industry by strengthening the business environment for trade and investment in all sectors, such as manufacturing and technology, infrastructure, artificial intelligence, healthcare, small and medium enterprises, as well as agriculture, environment and climate change, education, science, technology, defence and security.
Sheikh Khaled also attended an official reception for the Japan-Emirati Friendship Association in Tokyo. He praised the strong economic relations between the UAE and Japan and the role of the Friendship Association in strengthening co-operation between the two countries.
This week's visit has allowed both sides to reflect on economic ties and friendship over the past 50 years, Wam reported.
The UAE has been one of Japan's main suppliers of oil for the past half century, today providing 20 per cent of its oil needs.
The Emirates is also Japan's tenth-largest trading partner globally, according to 2021 statistics. The value of Japanese investments in the Emirates has exceeded $14 billion.
Japan was one of the first countries to establish diplomatic relations with the UAE in 1971.
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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
