Sudanese Prime Minister Abdalla Hamdok addresses the Council of Ministers in the capital Khartoum on August 15. AFP
Sudanese Prime Minister Abdalla Hamdok addresses the Council of Ministers in the capital Khartoum on August 15. AFP
Sudanese Prime Minister Abdalla Hamdok addresses the Council of Ministers in the capital Khartoum on August 15. AFP
Sudanese Prime Minister Abdalla Hamdok addresses the Council of Ministers in the capital Khartoum on August 15. AFP

Sudan's prime minister says he will keep pushing for peace in Ethiopia


Soraya Ebrahimi
  • English
  • Arabic

Sudanese Prime Minister Abdalla Hamdok on Sunday said he would press ahead with efforts to end the conflict in Ethiopia's northern Tigray region.

Mr Hamdok said Sudan had reached out to all sides to promote peace in the region.

"We will continue to exert all efforts for Ethiopia to become stable, unified and secure," he said in Khartoum.

Northern Ethiopia has been racked by fighting since last November, when Prime Minister Abiy Ahmed sent troops against the Tigray People's Liberation Front, the region's then ruling party.

Tens of thousands of Ethiopians have fled to refugee camps in Sudan to escape a conflict that the UN says has pushed 400,000 people into famine-like conditions.

Last week, Sudan said it recalled its ambassador to Ethiopia for "consultations" after Addis Ababa spurned a push by Khartoum to help resolve the conflict.

This month, Ethiopia said its trust in some of Sudan's leaders had been "eroded", and accused the Sudanese army of an "incursion" into Ethiopian territory.

Relations between Khartoum and Addis Ababa have also soured over the contested border region of Fashaga, a fertile strip long cultivated by Ethiopian farmers but claimed by Sudan.

The tension comes at a delicate time between the two countries, which along with Egypt have been locked in inconclusive talks over the Grand Ethiopian Renaissance Dam on the Blue Nile River.

Downstream nations Egypt and Sudan both fear the mega-dam threatens water supplies on which they depend.

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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

Updated: August 16, 2021, 12:34 AM