Live updates: follow the latest news on Russia-Ukraine
The US House of Representatives has approved nearly $40 billion in military and economic aid to Ukraine, signalling a bipartisan commitment to thwart Russia's invasion.
The $39.8bn package sailed through the lower chamber of Congress in a 368-57 vote on Tuesday night and is nearly $7bn more than US President Joe Biden initially requested last month. The bill is aimed at assisting Ukraine militarily and economically, replenishing weapons the Pentagon has already shipped and providing $5bn to address global food shortages.
In a tweet, Ukrainian President Volodymyr Zelenskyy thanked House Speaker Nancy Pelosi for the "quick approval of the law" and said he looked forward to the US Senate's consideration of the bill.
In a letter to colleagues before the vote, Ms Pelosi said: "Time is of the essence – and we cannot afford to wait. With this aid package, America sends a resounding message to the world of our unwavering determination to stand with the courageous people of Ukraine until victory is won."
The new legislation would bring American support for the effort to nearly $54bn, including the $13.6bn in support Congress enacted in March. The total amounts to about $6bn more than the US spent on its entire foreign and military aid in 2019, a January report by the nonpartisan Congressional Research Service indicated. It is also about 1 per cent of the entire federal budget.
The new measure includes $6bn to arm and train Ukrainian forces, $8.7bn to restore US stores of weapons shipped to Ukraine and $3.9bn for US forces posted to the area.
There is also $8.8bn in economic support for Ukraine, $4bn to help Kyiv and its allies finance arms and equipment purchases and $900m for housing, education and other help for Ukrainian refugees in the US.
Tuesday night's vote came hours after Mr Biden hosted Ms Pelosi and other members of a Congressional delegation who visited Mr Zelenskyy in Kyiv last month.
Ms Pelosi told the US president that the delegation had a "long and detailed meeting" with Mr Zelenskyy on security, sanctions, humanitarian and diplomatic assistance.
Congressman Jason Crow said Ukraine needed "more advanced drones", "longer anti-ship missile systems" and a rotational training system.
Russian attacks on Ukraine’s southern port of Odesa have intensified in what appears to be an attempt to hamper deliveries of western arms. Those weapons have helped Ukraine to hold its own against Moscow but the grinding war is taking its toll.
A timetable for a Senate vote on the $39.8bn package remained unclear, though Senate majority leader Chuck Schumer said the upper chamber would move "swiftly" to vote on the measure.
In an effort to accelerate the bill's passage, the House bill abandoned plans to include funds that would bulk up US supplies of vaccines, medicine and Covid-19 tests.
Senate minority leader Mitch McConnell said he was focused on Ukrainian aid.
“I think we’re on a path to getting that done,” he told reporters. “It needs to be clean of extraneous matters, directly related to helping the Ukrainians win the war.”
First lady Jill Biden visited Ukraine over the weekend, making her the highest-ranking US representative to enter the war-torn country.
The Associated Press contributed to this report
Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20myZoi%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202021%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Syed%20Ali%2C%20Christian%20Buchholz%2C%20Shanawaz%20Rouf%2C%20Arsalan%20Siddiqui%2C%20Nabid%20Hassan%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%3C%2Fstrong%3E%2037%3Cbr%3E%3Cstrong%3EInvestment%3A%3C%2Fstrong%3E%20Initial%20undisclosed%20funding%20from%20SC%20Ventures%3B%20second%20round%20of%20funding%20totalling%20%2414%20million%20from%20a%20consortium%20of%20SBI%2C%20a%20Japanese%20VC%20firm%2C%20and%20SC%20Venture%3C%2Fp%3E%0A
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
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Abu Dhabi Sustainability Week