Landmark buildings light up in the UAE's colours to celebrate Flag Day

Landmark buildings across the UAE lit up in the country's colours on Tuesday in honour of Flag Day.

In Abu Dhabi, the Adnoc headquarters, Capital Gate, W Hotel on Yas Island, The Galleria mall and Khalifa University were among the buildings to display the country's flag.

In Dubai, the colours of the UAE flag illuminated the city centre as Burj Khalifa displayed the banner's red, black, white and green.

Flag Day was introduced in 2013 and it commemorates the accession of Sheikh Khalifa as President of the UAE in 2004.

Across the country, all activity ceased at 11am to raise the flag and hear the national anthem played to mark the historic day.

The flag holds a special place in Emirati culture and is a symbol of the country’s unity.

The colours represent courage, honesty, love and hope. The flag was designed by Abdullah Al Maainah in 1971 after he saw an advertisement for a flag-designing competition in Al Ittihad newspaper.

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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

Landmark buildings light up in the UAE's colours to celebrate Flag Day

November 3 marks the accession of Sheikh Khalifa as President of the UAE

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Ten tax points to be aware of in 2026