A handout picture released by the Jordanian Royal Palace on October 12, 2020, shows Bisher al-Khasawneh being sworn in as the new Prime Minister of Jordan, in the capital Amman. AFP
A handout picture released by the Jordanian Royal Palace on October 12, 2020, shows Bisher al-Khasawneh being sworn in as the new Prime Minister of Jordan, in the capital Amman. AFP
A handout picture released by the Jordanian Royal Palace on October 12, 2020, shows Bisher al-Khasawneh being sworn in as the new Prime Minister of Jordan, in the capital Amman. AFP
A handout picture released by the Jordanian Royal Palace on October 12, 2020, shows Bisher al-Khasawneh being sworn in as the new Prime Minister of Jordan, in the capital Amman. AFP

Jordan Parliament approves new government


Khaled Yacoub Oweis
  • English
  • Arabic

The government of Prime Minister Bisher Al Khasawneh received a vote of confidence from Jordan’s nominal Parliament on Wednesday.

King Abdullah holds most powers in the country and Parliament has confirmed all 15 governments he has appointed since becoming monarch 22 years ago.

He appointed Mr Al Khasawneh, a former diplomat, as prime minister in October to lead the country amid a surge of coronavirus deaths and infections.

Jordan is a constitutional monarchy, with the prime minister as head of government.

Mr Khasawneh, whose government received 88 votes of the 127 deputies present on Wednesday, held parliamentary elections in November, despite the surge.

Turnout was a record low at less than 30 per cent and the authorities reimposed a curfew a day after the poll.

On Wednesday, Mr Al Khasawneh announced a relaxation of the curfew, allowing people to go out on Friday. He also said the government aims to reopen schools gradually in the autumn semester.

Relaxation the curfew was in response to instructions by the king this week to ease coronavirus controls.

Most of Jordan’s official 4,076 deaths from the coronavirus and 310,000 infections have been recorded since October.

Officials say the rate of increase in infections has stabilised in the past few weeks.

A vaccination programme started on Wednesday, with the authorities aiming to vaccinate two million people out of Jordan’s 10 million population.

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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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