Police and civil aviation personnel wearing protective face masks work at the Kuwait Airport as the repatriation process of Kuwait citizens continues, following the outbreak of the coronavirus disease (COVID-19), in Kuwait City, Kuwait April 21, 2020. REUTERS/Stephanie McGehee
Police and civil aviation personnel wearing protective face masks work at the Kuwait Airport as the repatriation process of Kuwait citizens continues, following the outbreak of the coronavirus disease (COVID-19), in Kuwait City, Kuwait April 21, 2020. REUTERS/Stephanie McGehee
Police and civil aviation personnel wearing protective face masks work at the Kuwait Airport as the repatriation process of Kuwait citizens continues, following the outbreak of the coronavirus disease (COVID-19), in Kuwait City, Kuwait April 21, 2020. REUTERS/Stephanie McGehee
Police and civil aviation personnel wearing protective face masks work at the Kuwait Airport as the repatriation process of Kuwait citizens continues, following the outbreak of the coronavirus disease

Kuwait army chief praises soldiers for coronavirus effort


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Kuwait's army Chief of Staff has praised the country's military for its work and support for the country throughout the coronavirus crisis.

Lieutenant-General Mohammad Al-Khodher, in a statement released by the military after he toured a coronavirus inspection site at an air base.

He prayed that the pandemic would end soon and expressed confidence that it would be defeated under the leadership of the country's emir, crown prince and prime minister, state news agency Kuna reported.

Kuwait recorded its first death from the coronavirus outbreak on April 4. It imposed a nationwide curfew on March 22, from 5pm to 4am local time, which was extended on April 6 to keep the population indoors between 5pm and 6am.

It also imposed a full lockdown on the areas of Mahboula and Jleeb Al Shuyoukh.

Those who break the curfew could face up to three years in jail and fines of KD 10,000 the interior minister confirmed.

A public holiday declared from March 12 to March 26, except for entities providing essential services, was extended by another two weeks.

On March 13, Kuwait stopped all travel except cargo flights from the country until further notice.People are banned from going to restaurants and cafes and have been asked to no longer hold the traditional diwaniya private and public gatherings, state news agency Kuna said.

The Cabinet has suspended classes at all public and private schools as well as higher education institutions until August 4.

Kuwait has also initiated legal proceedings against people spreading fake news and rumours in relation to coronavirus, the country’s minister of interior said on March 18.

The ministry had warned the population against sharing rumours, saying it would track the culprits and hold them accountable.

On March 28 Kuwait repatriated citizens from London on a specially-chartered flight.

The country is also holding daily press briefings televised but national and regional outlets at 11am Sunday-Thursday.

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

Our legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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