US President Donald Trump rejected a new Covid-19 relief package approved by legislators, calling it 'a disgrace'. AFP
US President Donald Trump rejected a new Covid-19 relief package approved by legislators, calling it 'a disgrace'. AFP
US President Donald Trump rejected a new Covid-19 relief package approved by legislators, calling it 'a disgrace'. AFP
US President Donald Trump rejected a new Covid-19 relief package approved by legislators, calling it 'a disgrace'. AFP

US Covid relief bill at risk after Trump demands more stimulus money


Patrick deHahn
  • English
  • Arabic

US President Donald Trump said he might not sign the huge $900 billion Covid-19 relief bill Congress passed on Monday.

On Tuesday, Mr Trump said in a video on Twitter that he was disappointed with the bill Congress agreed to after weeks of extensive negotiations.

"The bill they are now planning to send back to my desk is much different than anticipated," Mr Trump said. "It really is a disgrace."

Mr Trump said he wanted stimulus checks to be $2,000 for Americans and $4,000 for families.

The current bill would send $600 to Americans who earned up to $75,000 in 2019, and another $600 to those who have dependent children in their families.

Mr Trump called it "ridiculously low." The $600 is less than the $1,200 stimulus check sent in the beginning of the US pandemic outbreak.

"I'm also asking Congress to immediately get rid of the wasteful and unnecessary items from this legislation, and to send me a suitable bill."

The spending items he criticised – for having nothing to do with the pandemic – were for the Smithsonian museum and research institution, foreign countries and other examples.

These items are part of the US government funding package, of which the Covid relief bill is part, as is practice in US legislation.

"Or else the next administration will have to deliver a Covid relief package. And maybe that administration will be me," Mr Trump concluded.

He still has not conceded the 2020 election to president-elect Joe Biden, who is expected to be inaugurated on January 20.

Mr Biden, on Tuesday called the bill a "down payment" and promised that he would ask Congress to approve additional Covid-related funding and stimulus checks.

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