UAE President issues law to establish International Humanitarian and Philanthropic Council

President Sheikh Mohamed has issued a federal decree to establish the UAE International Humanitarian and Philanthropic Council.

The new council will be led by Sheikh Theyab bin Mohamed, chairman of the Office of Development and Martyrs Families Affairs at the Presidential Court.

It will integrate the Joint Strategic Committee for African Co-operation, the UAE Humanitarian Committee, the Higher Committee for Foreign Aid and the International Health Advisory Committee.

The new council will be responsible for reviewing and approving policies for the sector, overseeing the implementation of relevant initiatives and projects, developing the future vision and framework for all humanitarian projects, as well as forming any subcommittees to support operations.

The UAE has launched several humanitarian aid campaigns in the last year to support crises around the world.

Last year, the UAE pledged $100 million in humanitarian aid to Ukraine following a directive from Sheikh Mohamed. It also sent a plane loaded with power generators to the crisis-hit country to help Ukrainian civilians cope with the harsh winter.

The UAE has also sent 622 tonnes of medical and health supplies to help victims of the floods in Libya, opened a field hospital in Afghanistan to provide medical assistance to earthquake victims, and delivered critical food and shelter to Sudanese refugees in Chad who have fled conflict in their homeland.

The country has also sent urgent humanitarian aid to Palestinians affected by the Israel-Gaza war as part of its Operation Gallant Knight 3 campaign.

It has distributed aid to more than 13,000 displaced Palestinians, sent more than 1.6 million items of warm clothing and blankets to Gaza to help civilians to cope with winter conditions, and established a field hospital in the enclave to treat the wounded.

The UAE is also providing urgent medical treatment for 1,000 injured Palestinian children and 1,000 cancer patients after an order from Sheikh Mohamed last year.

About 50 medical volunteers have been flown out to Gaza to treat injured Palestinians.

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

Classification of skills

A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.

A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.

The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.

UAE currency: the story behind the money in your pockets

UAE President issues law to establish International Humanitarian and Philanthropic Council

Council will be responsible for reviewing and approving policies

Ten tax points to be aware of in 2026

Classification of skills

UAE currency: the story behind the money in your pockets