Anti-government protesters shout slogans during a demonstration demanding the ousting of Yemeni president Ali Abdullah Saleh in Sana'a yesterday.
Anti-government protesters shout slogans during a demonstration demanding the ousting of Yemeni president Ali Abdullah Saleh in Sana'a yesterday.
Anti-government protesters shout slogans during a demonstration demanding the ousting of Yemeni president Ali Abdullah Saleh in Sana'a yesterday.
Anti-government protesters shout slogans during a demonstration demanding the ousting of Yemeni president Ali Abdullah Saleh in Sana'a yesterday.

Diplomats and Yemeni opposition try to resurrect GCC plan for Saleh's departure


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SANA'A // Yemen opposition leaders will consider modifications to a Gulf Cooperation Council plan that aims to ease the entrenched President Ali Abdullah Saleh out of nearly 33 years in power, an opposition leader said yesterday.

Gulf, US and EU diplomats are trying to resurrect the GCC deal, which would see Mr Saleh resign a month after signing, as violence rises in the country, home to one of al Qa'eda's most aggressive regional wings.

Modifications proposed by the ruling party, passed on to the opposition by diplomats, would let the ruling party appoint a unity government for the transition period until elections and would also change which opposition representative would sign the deal, the opposition leader said.

An opposition leader yesterday told Reuters that the opposition was discussing the proposal, but "it may stick to the principle that the Gulf initiative cannot be amended."

He indicated that the opposition's main objections were not with the changes being proposed but with setting a precedent for modifying the original deal.

Abdullatif al-Zayani, the secretary general of the GCC, has been in Sana'a since Saturday trying to revive the GCC-brokered deal that Qatar, one of its six members, backed out of, blaming stalling and "lack of wisdom".

Mr Saleh, a shrewd political survivor who has outlasted previous opponents' attempts to challenge his power, indicated in April he would sign the deal, but refused to put his name to it in the final hours. He said at the time he would only sign in his capacity as ruling party leader, not as president.

He and his party have now agreed he would sign as president of both the party and the country.

Meanwhile, in the southern port city of Aden, gunmen in civilian clothes fired into the air at a protest camp early yesterday morning, protesters said, in an apparent attempt to scare demonstrators out of the area where they have camped out for months to demand Mr Saleh's immediate departure.

Residents and medics said several were hurt but no one was killed. Fleeing protesters, some of whom hurled stones at their attackers, quickly returned to their camp after the clashes.

Elsewhere in the south, suspected Islamist militants shot dead two soldiers and a civil servant as they drove up in a lorry to a security checkpoint in the southern city of Mukalla, a local official said. A fourth person was wounded.

The United States and Saudi Arabia, both targets of foiled attacks from al Qa'eda's Yemen wing, have been keen to see an end to Yemen's political stalemate out of concern that continued chaos could give the militant group more room to operate freely.

Protesters, frustrated that three months of demonstrations have failed to dislodge Mr Saleh, say they will step up their campaign by marching on government buildings, a move which brought new bloodshed last week as security forces fired to stop them.

Aden residents said yesterday said their city was almost completely shut down, this time, not by protesters closing government buildings but by army roadblocks posted around the city to prevent a march on the presidential palace.

Protest leaders had called for marches on presidential palaces in several Yemeni cities but sent messages on Facebook yesterday cancelling the plan.

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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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