Living richly

For the first time in 16 years the Forbes Rich List does not contain an American at the top. That honour goes to Carlos Slim, the cigar-smoking Mexican of Lebanese descent. With a fortune estimated at $53.5 billion, he has overtaken Bill Gates, the co-founder of Microsoft and Warren Buffett, the legendary investor. Americans may view this as another sign of their country's waning influence. But Messrs Gates and Buffett, while they still have fortunes of $53bn and $47bn respectively, have slipped down the list because of their growing philanthropy. Mr Gates has set up the Bill and Melinda Gates Foundation, spending billions on a number of programmes throughout the developing world, including a commitment to spend $10bn over the next 10 years on vaccinations. Mr Buffett has contributed generously to this fund.
It was their fellow American, Andrew Carnegie, who said that "the man who dies thus rich dies disgraced". What Messrs Gates and Buffett have shown is that creating jobs with your business savvy and ideas and creating opportunities through philanthropy are far from mutually exclusive efforts. It is perhaps an honour for them to have moved down the Forbes Rich List.

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

Gates and Buffett have shown that creating jobs with your business savvy and creating opportunities through philanthropy are far from mutually exclusive efforts.

Ten tax points to be aware of in 2026