LUXEMBOURG // France wants a robust nuclear agreement with Iran that must include a strong verification mechanism to check Tehran’s compliance with any deal, French foreign minister Laurent Fabius said on Monday.
Mr Fabius spoke after meeting Iranian foreign minister Mohammad Javad Zarif, who was in Luxembourg for talks with European ministers before negotiators head to Vienna this week for what could be the final stage of talks on Iran’s nuclear programme.
Iran and six world powers are nearing a June 30 deadline to clinch a deal to restrict Iran’s nuclear programme for at least a decade in exchange for relief from sanctions.
Before the meeting, Mr Zarif said it was worth missing the deadline by a few days in order to get a good agreement. France has been more hawkish than some of the six powers.
“France wants an agreement, but a strong agreement, not a bad agreement,” Mr Fabius said after an hour of talks with Mr Zarif.
Such an accord would include a time limit on Iran’s nuclear research and production capabilities and an advanced regime to verify Iran’s compliance with the agreement, including “if necessary” at military sites, he said.
It should also include the automatic return of sanctions if Iran violates its commitments, Mr Fabius said.
“All that is important both for regional security and for action against nuclear proliferation,” he said.
German foreign minister Frank-Walter Steinmeier said the talks were entering a “very decisive period”.
“But we’re not at the endpoint. The basic points need to be translated into a comprehensive negotiating text and that’s not easy as negotiating in detail has created a few hindrances,” he said.
Iranian news agencies quoted Mr Zarif as saying it was worth missing the June 30 deadline by a few days to get a good deal.
“Political and technical differences remain,” Mr Zarif said before the meeting. “We’ve always tried to channel all our efforts into finalising a deal at the first possible opportunity, but it’s more important that we reach a good agreement.”
Earlier, British foreign secretary Philip Hammond also suggested the talks might go on beyond the deadline.
“There will need to be some more flexibility shown by our Iranian partners if we are going to reach a deal, but, look, this is a negotiation, we always expected it would go right to the line and maybe beyond the line,” Hammond said.
“So I think the serious negotiations are now getting under way and over the next week or so I hope we will start to see some real progress,” he said.
Asked if it would matter if the June 30 deadline slipped by a few days, he said: “Let’s see where we get to. We are pushing hard to get there.”
* Reuters and Bloomberg
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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
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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
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9. Reduced compliance obligations for imported goods and services
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10. Substance and CbC reporting focus
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