US State Department looks to bolster 'tech diplomacy'

The US State Department on Tuesday launched a new office aimed at boosting “tech diplomacy” and engaging with foreign partners on rapidly emerging technologies, including artificial intelligence and quantum computing.

The move comes as Washington continues to focus on growing technological competition, particularly from China.

Secretary of State Antony Blinken set up the Office of the Special Envoy for Critical and Emerging Technology as part of a wider push to modernise US foreign policy and address the “constellation of critical and emerging technologies” that are reshaping the world, the State Department said.

While the statement did not mention China specifically, the White House last year released its National Security Strategy calling the Asian giant “the only competitor with both the intent and, increasingly, the capability to reshape the international order".

“The constellation of critical and emerging technologies reshaping the world is now an integral part of the conduct of US foreign policy and diplomacy,” the State Department said.

The centre will engage foreign partners on technologies that will “transform our societies, economies, and security — including biotechnology, advanced computing, artificial intelligence, and quantum information technologies”.

Mr Biden last year signed the multibillion dollar Chips and Science Act into law, which focused on boosting semiconductor production and research.

The White House sees the bill as crucial to countering China and ensuring that the US maintains its competitive edge over Beijing. The legislation provides $52.7 billion for semiconductor research, development, manufacturing and workplace development.

The State Department's new technology office will be headed by Deputy Special Envoy Seth Center.

Mr Center has previously served at the National Security Council, the State Department and as a senior fellow at the Washington-based Centre for Strategic and International Studies.

He served as director for National Security Strategy and History at the NSC from 2017-2019, where he helped conceptualise and write the 2017 National Security Strategy.

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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

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Director: Dean Fleischer Camp

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England's all-time record goalscorers:
Wayne Rooney 53
Bobby Charlton 49
Gary Lineker 48
Jimmy Greaves 44
Michael Owen 40
Tom Finney 30
Nat Lofthouse 30
Alan Shearer 30
Viv Woodward 29
Frank Lampard 29

Key findings of Jenkins report

Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."

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