With thousands dead, two million displaced and mounting fears of a rebel march on Addis Ababa, Ethiopia's war threatens to unleash instability across the fragile Horn of Africa region, even as envoys scramble to end the year-long conflict. AFP
With thousands dead, two million displaced and mounting fears of a rebel march on Addis Ababa, Ethiopia's war threatens to unleash instability across the fragile Horn of Africa region, even as envoys scramble to end the year-long conflict. AFP
With thousands dead, two million displaced and mounting fears of a rebel march on Addis Ababa, Ethiopia's war threatens to unleash instability across the fragile Horn of Africa region, even as envoys scramble to end the year-long conflict. AFP
With thousands dead, two million displaced and mounting fears of a rebel march on Addis Ababa, Ethiopia's war threatens to unleash instability across the fragile Horn of Africa region, even as envoys

No Afghan-style evacuation for US nationals in Ethiopia


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The US has again urged its nationals to leave war-torn Ethiopia immediately on their own, saying there will there will be no Afghanistan-style military evacuation from the country.

The US embassy has been calling on US citizens for several days to take commercial flights to leave the country, where rebel groups no longer rule out marching in the capital Addis Ababa.

The embassy offers loans to those who are unable to purchase a ticket immediately.

“We are doing that not because we are pessimistic about the prospects for peace, but because we are practical,” said State Department spokesman Ned Price.

He said he feared a “misperception” among the public “that what we saw in Afghanistan is something that the US government can undertake anywhere and everywhere in the world”.

In mid-August, when the Taliban captured Kabul before the US military had completed its withdrawal from Afghanistan, Washington sent thousands of soldiers back to the capital's airport to improvise an unprecedented evacuation operation.

In just over two weeks, with the help of its allies, the US military set up an airlift and evacuated more than 123,000 people — Americans and other foreigners, but also thousands of Afghans who feared reprisals from the country's new militant masters, especially those who had worked with westerners in the past.

'Afghanistan was unique'

However, the government of President Joe Biden was criticised for failing to plan ahead more for the operation, and for leaving some Americans behind after the withdrawal of foreign forces.

The State Department announced an internal investigation to determine how it could have better anticipated and organised such a huge evacuation.

“What we did in Afghanistan was unique,” Mr Price said on Monday, noting that “a military airlift of nearly 125,000 people … is not something the US government can replicate elsewhere”.

“There is no reason for Americans to wait until the last minute” to leave the Horn of Africa country on commercial flights, he said.

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Points about the fast fashion industry Celine Hajjar wants everyone to know
  • Fast fashion is responsible for up to 10 per cent of global carbon emissions
  • Fast fashion is responsible for 24 per cent of the world's insecticides
  • Synthetic fibres that make up the average garment can take hundreds of years to biodegrade
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Classification of skills

A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation. 

A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.

The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000. 

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

THE SPECS

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Updated: November 16, 2021, 2:54 PM