Rouhani heads to France as Iran rebuilds relations with Europe


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ROME // Hassan Rouhani wraps up his visit to Italy on Wednesday before heading to France on the second leg of a trip signalling the dramatic rapprochement between Tehran and the European powers since the lifting of sanctions against Iran.

The Iranian president’s visit to Paris is expected to result in the signing of important business contracts, after sealing multibillion dollar deals in Italy.

A major order for 114 Airbus planes to modernise Iran Air’s ageing fleet is expected to be confirmed in France, along with tie-ups with carmakers Peugeot and Renault.

Before heading to Paris, Mr Rouhani will conclude his two-day trip to Rome with a visit to the Colosseum with Dario Franceschini, the Italian culture minister.

The president is accompanied by a delegation of more than 100 ministers, officials and businessmen marking the return of Iran on the international economic stage with the lifting of sanctions after a historic deal over Tehran’s nuclear programme.

Mr Rouhani, 67, was elected in 2013 on a pledge to end sanctions and improve relations with the West.

The Iranian leader on Monday met with his Italian counterpart Sergio Mattarella and prime minister, Matteo Renzi, with whom he attended the signing of several economic agreements in the setting of the Capitole.

Italian officials said contracts signed in Rome would be worth up to €17 billion (Dh67.8bn), underlining the huge economic stakes involved in Iran’s reopening, particularly for Europe’s manufacturing and engineering sectors.

Mr Rouhani will meet Francois Hollande, the President, and French business leaders on Thursday.

* Agence France-Presse

Four-day collections of TOH

Day             Indian Rs (Dh)        

Thursday    500.75 million (25.23m)

Friday         280.25m (14.12m)

Saturday     220.75m (11.21m)

Sunday       170.25m (8.58m)

Total            1.19bn (59.15m)

(Figures in millions, approximate)

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Starring: Michael B Jordan

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Wed, Aug 29:

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  • Oman bt Nepal by 7 wickets
  • UAE bt Singapore by 215 runs

Thu, Aug 30: UAE v Nepal; Hong Kong v Singapore; Malaysia v Oman

Sat, Sep 1: UAE v Hong Kong; Oman v Singapore; Malaysia v Nepal

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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

The Voice of Hind Rajab

Starring: Saja Kilani, Clara Khoury, Motaz Malhees

Director: Kaouther Ben Hania

Rating: 4/5

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Rating: 2.5/5

THE BIO:

Sabri Razouk, 74

Athlete and fitness trainer 

Married, father of six

Favourite exercise: Bench press

Must-eat weekly meal: Steak with beans, carrots, broccoli, crust and corn

Power drink: A glass of yoghurt

Role model: Any good man