UAE and Saudi form joint council

JEDDAH // The UAE and Saudi Arabia signed an agreement on Monday to set up a coordination council.

King Salman of Saudi Arabia and Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, attended the signing ceremony at the Peace Palace in Jeddah. The council will be led by Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs, and Prince Mohammed bin Salman, the deputy crown prince and defence minister of Saudi Arabia.

Ministers and officials from the two countries will sit on the council.

Cooperation will be based on “shared religious, historical, social and cultural ties between the UAE and Saudi Arabia”, and “out of keenness to consolidate the fraternal relations between them”, the state news agency Wam reported.

The agreement was signed by Ali Al Shamsi, Deputy Secretary General of the National Security Council, and Dr Nizar Madani, Saudi minister of state for foreign affairs.

The council will alternate its meetings between the two countries.

Sheikh Mohammed and King Salman also discussed regional conflicts including Yemen, Syria, Iraq and Libya, and risks posed to innocent people by terrorists and extremist groups.

Sheikh Mohammed said the bonds between the countries were based on will to achieve security and stability in the region.

He said challenges facing the region required extra efforts and consultation to face foreign agendas and dangers posed by terrorism and extremism.

The establishment of the coordination council was also welcomed by the Saudi ambassador to the UAE, Dr Mohammed bin Abdul Rahman Al Bishr.

“The agreement comes within the context of reinforcing cooperation and continuous consultations between the two countries on issues of mutual interest,” he said.

“Saudi Arabia and the UAE represent a shining example of fraternity and cooperation in all fields.”

newsdesk@thenational.ae

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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

Three ways to get a gratitude glow

By committing to at least one of these daily, you can bring more gratitude into your life, says Ong.

During your morning skincare routine, name five things you are thankful for about yourself.
As you finish your skincare routine, look yourself in the eye and speak an affirmation, such as: “I am grateful for every part of me, including my ability to take care of my skin.”
In the evening, take some deep breaths, notice how your skin feels, and listen for what your skin is grateful for.