Rockets are launched from the Gaza Strip towards Israel on Friday. The US is providing $10 million to Palestinians to promote peace with the Israelis. AP
Rockets are launched from the Gaza Strip towards Israel on Friday. The US is providing $10 million to Palestinians to promote peace with the Israelis. AP
Rockets are launched from the Gaza Strip towards Israel on Friday. The US is providing $10 million to Palestinians to promote peace with the Israelis. AP
Rockets are launched from the Gaza Strip towards Israel on Friday. The US is providing $10 million to Palestinians to promote peace with the Israelis. AP

US sending new aid to Palestinians as conflict intensifies


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The Biden administration notified the US Congress this week that it will send millions of dollars in assistance to the Palestinians to promote peace with Israel, as violence between the two sides continues.

As the conflict intensifies despite US calls for restraint, President Joe Biden's administration notified Congress on Thursday it will provide $10 million to Palestinian groups in the West Bank and Gaza to support exchange and reconciliation projects with Israelis.

The aid recipients were not named.

The State Department on Friday said the money is part of more than $100m the administration allocated to the Palestinians earlier this year, reversing a near total cut-off in support under former president Donald Trump.

In a notice to members of Congress obtained by The Associated Press, the US Agency for International Development said the $10m would go to support "people-to-people efforts to bring together conflict-affected groups to address divisions that may be rooted in group differences such as ethnicity, religion, status, class or political affiliation in areas affected by conflict and civil war".

It said the money would be spent mainly on cross-border projects between Israel and the West Bank and Gaza, but might also include programmes for Jews and Arabs living in Israel.

The fighting between the two sides has been intensifying over the last few days, with Hamas launching rocket attacks into Israel and the Israeli military responding with air strikes. Violence between Arabs and Jews within Israel is also on the rise.

"Palestinians – including in Gaza – and Israelis equally deserve to live in dignity, safety and security. No family should have to fear for their safety within their own home or place of worship," Mr Biden said on Friday.

"We think most about the children in these societies who face trauma from a conflict far beyond their control.

"My administration will continue to engage Palestinians, Israelis and other regional partners to work towards a sustainable calm."

Mr Biden has sent senior diplomat Hady Amr to Israel in a bid to help de-escalate the fighting. Mr Amr arrived on Friday.

The Biden administration has made no secret of its belief that Mr Trump’s approach to the Middle East, which alienated the Palestinians, was flawed and made prospects for peace less likely.

The administration has announced $130m in assistance to the Palestinians, which appears aimed at encouraging them to return to negotiations with Israel.

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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

How much do leading UAE’s UK curriculum schools charge for Year 6?
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  2. Kings School Al Barsha (Dubai) – Dh71,905
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Hunting park to luxury living
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