The third typhoon to hit the Philippines in as many weeks caused major flooding in Manila on Thursday, trapping people on rooftops and claiming at least one life in another part of the country.
Typhoon Vamco carried winds of up to 155 kilometres per hour as it swept across the country's largest island of Luzon after making landfall overnight.
Authorities warned of landslides and potentially deadly storm surges along the coast.
Heavy rain effectively shut down Manila, the city of 12 million people, and surrounding areas.
"A lot of places are submerged. Many people are crying for help," said Rouel Santos, 53, a retired disaster officer in Rizal province, next to the capital.
Mr Santos said the flooding caused by Vamco brought back memories of the devastating Typhoon Ketsana, known in the Philippines as Tropical Storm Ondoy, that hit in 2009 and claimed hundreds of lives.
An official from the country's Office of Civil Defence said rainfall caused by Vamco so far was "near the volume" during Ondoy, and issued a warning that flooding could worsen as runoff from nearby mountains flowed into already swollen waterways.
Philippine Red Cross personnel used boats to rescue people stranded in their homes in Marikina City, one of the hardest-hit areas of the capital, withhere the water in some streets reeling under shoulder-high water.
Photos shared on Twitter by Red Cross chief Richard Gordon showed people being lowered through a hole in a roof while others were helped to climb over a balcony railing into a boat.
"The magnitude of what we're experiencing now is comparable to Ondoy," Marikina City Mayor Marcelino Teodoro told CNN Philippines.
"We have so many people who until now are stranded on their rooftops or trapped on the second floor of their houses. Some areas that were historically not flooded, such as the City Hall, are submerged."
At least one person died and three others were missing in Camarines Norte province, Civil Defence said late on Wednesday.
Requests for help were "pouring in", said Casiano Monilla, Civil Defence deputy administrator for operations.
He said many people had not heeded warnings to evacuate before the typhoon struck.
"I didn't expect it to be like this," said Rosalinda Opsima, who fled her home with her husband after the fast-rising water caught them by surprise.
Schools, which have been empty since the start of the coronavirus pandemic in March, are being used as emergency shelters along with gymnasiums.
The weather service has warned people of life-threatening storm surges along parts of the coast, including in Manila, that could inundate low-lying areas.
The Bicol region, which Vamco grazed before making landfall, was hit by powerful winds and heavy rain on Wednesday as the eye of the typhoon neared the disaster-prone archipelago.
The area is still reeling from deadly typhoons Molave and Goni, which killed dozens of people and destroyed tens of thousands of homes.
Some areas of Bicol remain without power and with only limited or no telecom services after Goni, the most powerful typhoon so far this year, toppled power lines, flattened houses and flooded roads.
The Philippines is hit by an average of 20 storms and typhoons every year, which typically wipe out harvests, homes and infrastructure in already impoverished areas.
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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
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