UK Prime Minister Rishi Sunak and Japanese leader Fumio Kishida are set to sign on Wednesday what the British government says will be the most significant defence deal between the two nations in more than a century.
The UK and Japan will allow forces to be posted in each other’s countries.
Downing Street is calling the agreement the most important defence treaty between London and Tokyo since 1902 and it will make the UK the first European country to have reciprocal access with Japan.
The pact is part of the UK’s defence and foreign policy lean towards the Indo-Pacific region after an integrated review in 2021 recognised the growing influence of China in the area.
It has been years in the making, with former prime minister Boris Johnson agreeing in principle to a deal in May during Mr Kishida’s first official visit to Britain.
Mr Sunak said the accord would “cement the UK’s commitment to the Indo-Pacific” and bolster economic security.
Officials said the agreement would allow both forces to plan and deliver larger and more complex military exercises and access.
“In the past 12 months, we have written the next chapter of the relationship between the UK and Japan, accelerating, building and deepening our ties," Mr Sunak said.
“We have so much in common: a shared outlook on the world; a shared understanding of the threats and challenges we face; and a shared ambition to use our place in the world for global good, ensuring our countries prosper for generations to come.
“This reciprocal access agreement is hugely significant for both our nations.
"It cements our commitment to the Indo-Pacific and underlines our joint efforts to bolster economic security, accelerate our defence co-operation and drive innovation that creates highly skilled jobs.
“In this increasingly competitive world, it is more important than ever that democratic societies continue to stand shoulder to shoulder as we navigate the unprecedented global challenges of our time.”
Mr Kishida’s visit to London is part of a whistle-stop tour to five Group of Seven nations, marking Japan taking on the rotating presidency of the group for 2023.
His trip, in which he will visit France, Italy, the UK, Canada and finally the US in five days, comes as Japan breaks from its post-war restraint to take on more offensive roles, with an eye towards China.
Japan announced last month it had adopted security and defence reforms, including a counter-strike capability that breaks from a defence-only principle that had been in place since its Second World War defeat.
While at the Tower of London, Mr Sunak and Mr Kishida will view Japanese armour on display.
It was presented to King James VI in 1613 by Shogun Tokugawa Hidetada of Japan.
It was given to the king to mark the first trade agreement between England and Japan.
Signing the deal at the tower will come weeks after the UK and Japan agreed, along with Italy, to develop the next generation of combat fighter jets under the Global Combat Air Programme.
Last month, the UK and Japan also launched a new digital partnership to strengthen co-operation across cyber resilience, online safety and semiconductors.
The leaders are also expected to discuss trade and the G7 response to Russia’s invasion of Ukraine, with the conflict approaching its first anniversary.
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Sector: e-commerce
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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
Company%20profile
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Tips for entertaining with ease
· Set the table the night before. It’s a small job but it will make you feel more organised once done.
· As the host, your mood sets the tone. If people arrive to find you red-faced and harried, they’re not going to relax until you do. Take a deep breath and try to exude calm energy.
· Guests tend to turn up thirsty. Fill a big jug with iced water and lemon or lime slices and encourage people to help themselves.
· Have some background music on to help create a bit of ambience and fill any initial lulls in conversations.
· The meal certainly doesn’t need to be ready the moment your guests step through the door, but if there’s a nibble or two that can be passed around it will ward off hunger pangs and buy you a bit more time in the kitchen.
· You absolutely don’t have to make every element of the brunch from scratch. Take inspiration from our ideas for ready-made extras and by all means pick up a store-bought dessert.
In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
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- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
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THE BIO
Ms Davison came to Dubai from Kerala after her marriage in 1996 when she was 21-years-old
Since 2001, Ms Davison has worked at many affordable schools such as Our Own English High School in Sharjah, and The Apple International School and Amled School in Dubai
Favourite Book: The Alchemist
Favourite quote: Failing to prepare is preparing to fail
Favourite place to Travel to: Vienna
Favourite cuisine: Italian food
Favourite Movie : Scent of a Woman
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
