Sudanese demonstrators march during an anti-government protest in the capital, Khartoum. AFP
Sudanese demonstrators march during an anti-government protest in the capital, Khartoum. AFP
Sudanese demonstrators march during an anti-government protest in the capital, Khartoum. AFP
Sudanese demonstrators march during an anti-government protest in the capital, Khartoum. AFP

Sudanese talks stumble over security reform


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Talks in Sudan aimed at reaching a final agreement to name a civilian government next month and launch a new transition towards elections have hit a roadblock over the thorny issue of restructuring the military, political and military sources have said.

Disagreements surfaced this week over the timetable for integrating the powerful paramilitary Rapid Support Forces into the military, a move called for in a framework deal for the new transition signed in December.

Integrating the RSF and placing the military under civilian authority are core demands of a protest movement that helped topple long-ruling autocrat Omar Al Bashir four years ago.

Analysts regard security sector reform as crucial to Sudan's chances of evolving into a democracy.

Talks in Khartoum this week were meant to provide guidance on how and when the RSF will be integrated, but concluded late on Wednesday without issuing recommendations.

The army, police and intelligence agency withdrew from the talks in protest against the lack of any timetable for integration, two political sources and one military source told Reuters. Pictures of the conference's closing session showed that their seats were empty.

While the army prefers a two-year timetable for integration, international mediators have suggested five years, the sources said, while the RSF proposed 10 years.

Both forces said on Thursday that they were committed to the talks and awaiting the results of a technical committee discussing details of integration.

The army and the RSF staged a coup in October 2021, ending a previous transition towards elections that had been launched after Al Bashir's removal.

The new transition is meant to turn the page on the takeover, although negotiations ahead of an expected signature of a final accord on Saturday had already stoked tension that led both the army and the RSF to deploy forces in the capital.

A more formal constitutional declaration is meant to be signed on April 6, with a civilian government due to be named on April 11.

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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

Updated: March 31, 2023, 5:42 AM