Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, chairs the first meeting of the National Covid-19 Crisis Recovery Management and Governance Committee on Wednesday. Wam
Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, chairs the first meeting of the National Covid-19 Crisis Recovery Management and Governance Committee on Wednesday. Wam
Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, chairs the first meeting of the National Covid-19 Crisis Recovery Management and Governance Committee on Wednesday. Wam
Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, chairs the first meeting of the National Covid-19 Crisis Recovery Management and Governance Committee on Wednesday. Wam

Government

UAE's Covid-19 recovery committee holds first meeting

Main target areas to prioritise recovery are health, education, food, society, security and the economy

The National

November 04, 2020

  • English
  • Arabic

The UAE's newly-formed Covid-19 recovery committee had its first meeting on Wednesday and set out a plan to boost the country's economy in the wake of the pandemic.

Chaired by Dr Sultan Al Jaber, who is also Minister of Industry and Advanced Technology, the National Covid-19 Crisis Recovery Management and Governance Committee planned for three main recovery phases: planning, preparation and implementation.

Its members also outlined two strategic objectives; the first is to establish proactive support programmes for institutions.

And the second is to ensure the recovery phase is efficient by enhancing capabilities, suggesting necessary measures, and promoting business continuity and services.

Main target areas to prioritise recovery were health, education, food, society, security and the economy.

Part of the committee's work will also be to follow up on and measure recovery using an integrated system, said Dr Al Jaber.

A presentation was made, highlighting key roles and setting targets with time frames for each sector.

The planning stage for recovery will aim to balance the health and safety of the public, and all precautionary measures guaranteeing this, and the full re-opening of economic activities.

The committee was formed on Saturday and tasked with leading the country's economic recovery post-pandemic.

Its members include government officials that represent a variety of ministries and federal departments.

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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