German authorities have warned that the Israel-Gaza war will add to an increasingly stretched asylum system.
Officials are having to explore the opening of gym complexes as temporary shelters for the second time in a decade.
City leaders say they have little to no accommodation left to offer migrants after more than 300,000 people sought asylum in Germany last year, the highest level since 2016 when the figure exceeded 600,000.
People from Syria accounted for more than 95,000 claims in 2023. About 55,000 people sought asylum from Turkey, 48,000 from Afghanistan and thousands of others from Iran and Iraq.
The asylum figures do not include the more than one million Ukrainians who have taken refuge in Germany since Russia invaded in 2022, who are in a separate category under EU migration law.
In a document setting out demands to Chancellor Olaf Scholz’s government, an association of towns and municipalities expressed concern that numbers could rise again in 2024.
“In addition to the already high number of refugees, the current developments in the Middle East and other crisis and conflict zones mean we can expect the numbers to continue to rise worldwide,” it said.
“On top of that, there is a danger that people’s acceptance and positive stance towards accepting and integrating refugees and people with a migrant background will be lost.”
A few dozen Palestinians have claimed asylum in Germany so far, with most routes out of Gaza blocked. Israel has been heavily criticised for suggesting people should be displaced from the territory.
Concern over migration has helped fuel a bounce in the polls for the nationalist Alternative for Germany (AfD) party, which is hopeful of victory in three heartland states later this year.
The report said the situation in German schools and nurseries was “highly strained” because of the number of extra children. Housing can only be found with the “greatest difficulty”, if at all.
Courses for migrants such as German language classes are also overstretched, meaning it is harder for them to join the labour market, and “successful integration in such circumstances is hardly possible any more”, it said. Ministers have introduced emergency border checks in an attempt to stem the numbers.
Andre Berghegger, the head of the association and a conservative MP, said accommodation was in shorter supply than during the migration crisis after conflicts in Iraq and Syria in 2015.
He said local authorities were having to put people up in temporary accommodation such as hotels and sports halls, which may become permanent due to a lack of alternatives.
“The numbers must be limited so that we have room to breathe again, to be able to look after people who come here in an orderly and sensible way. Then it will be possible to maintain or increase public acceptance again.”
Local authorities want to increase deportations by having more countries declared safe. Ministers previously rejected calls to add Tunisia, Algeria and Morocco to a list of destinations where people can be returned home.
Their demands also include more funding, a new digital ID for asylum seekers and better protection of the EU’s borders so that fewer people arrive in Germany.
The German government, under pressure from regional leaders last year, agreed to explore the idea of handling asylum claims in third countries, although Mr Scholz’s team has spoken of “practical problems” and “high legal hurdles”.
Company%20profile
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Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
Fifa Club World Cup quarter-final
Esperance de Tunis 0
Al Ain 3 (Ahmed 02’, El Shahat 17’, Al Ahbabi 60’)
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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