The vote is expected to take place on Thursday. AP
The vote is expected to take place on Thursday. AP
The vote is expected to take place on Thursday. AP
The vote is expected to take place on Thursday. AP

US gives final approval to $40bn Ukraine aid package


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The US Senate gave overwhelming final approval to a $40 billion aid package for Ukraine as Republicans and Democrats rallied behind the Eastern European country's efforts to fight off the Russian invasion.

The 86-11 vote comes three weeks after US President Joe Biden requested an initial $33bn in military and economic assistance for Kyiv.

“I applaud the Congress for sending a clear bipartisan message to the world that the people of the United States stand together with the brave people of Ukraine as they defend their democracy and freedom,” Mr Biden said in a statement.

Ukrainian President Volodymyr Zelenskyy also praised Congress's efforts, heralding the $40bn package as a “significant [American] contribution”.

The House of Representatives approved the aid on May 10 but it stalled in the Senate after Republican Rand Paul refused to allow a quick vote.

Speaking from the Senate floor, Senate Majority Leader Chuck Schumer called the delay tactic by the junior senator from Kentucky “repugnant”.

He added that the Republicans who voted against the measure were “beyond troubling”.

“It appears more and more that MAGA [Make American Great Again] Republicans are on the same soft-on-Putin playbook that we saw used by former President Trump,” he said, referring to Russian President Vladimir Putin.

Republican leader Mitch McConnell, who voted in favour of the bill, said Ukraine's defeat would embolden autocrats, increase US security costs and put at risk the nation's European trading parties.

“The most expensive and painful thing America could possibly do in the long run would be to stop investing in sovereignty, stability and deterrence before it’s too late,” said Mr McConnell, who led a small Republican delegation to Kyiv at the weekend.

Contained in the bundle is $6bn earmarked to help boost Ukraine's armoured vehicle inventory and air defence system.

And nearly $9bn is allocated to ensure Ukraine's “continuity of government”, among other items, including humanitarian aid.

Congress already approved almost $14bn for Ukraine in mid-March, weeks after Russia invaded.

But as fighting has shifted away from the capital and towards the eastern and southern parts of the country, Mr Biden began calling for another round of financial support.

The US president is looking for his country to take the lead in what he views as a struggle between democracy and authoritarianism. But funds already designated for Ukraine are about to run out, he said.

The House of Representatives already approved the $40bn package — the equivalent to the 2020 GDP of Cameroon — last week.

Such bipartisan support is rare in a Congress often divided on party lines.

“When it comes to [Russian President Vladimir] Putin, either we pay now or we pay later,” said Republican Lindsey Graham, who earlier in the conflict took to Twitter to call for the Russian president to be assassinated.

Though it originally stuck to sending weapons seen as defensive, Washington has moved on to supplying artillery, helicopters and drones to the Ukrainian army, whose troops are trained to use them in the US or in third countries before heading back to use them at the front.

Another $9bn of the latest package has also been set aside to help the US resupply its own weapons.

The Biden administration on Thursday also authorised a $100 million drawdown that includes 18 155mm Howitzers, 18 more tactical vehicles, counter-artillery radars and spare parts, Pentagon spokesman John Kirby said.

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

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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Updated: May 19, 2022, 8:12 PM