• Saudi Arabia's Foreign Minister Prince Faisal bin Farhan with the Chancellor of Austria Sebastian Kurz. SPA
    Saudi Arabia's Foreign Minister Prince Faisal bin Farhan with the Chancellor of Austria Sebastian Kurz. SPA
  • Wang Qun, China's ambassador to the UN, waits for the start of talks on reviving the 2015 Iran nuclear deal in Vienna. Reuters
    Wang Qun, China's ambassador to the UN, waits for the start of talks on reviving the 2015 Iran nuclear deal in Vienna. Reuters
  • European External Action Service deputy secretary general, Enrique Mora, and Iranian Deputy Foreign Minister, Abbas Araghchi, attend the summit in Vienna. Reuters
    European External Action Service deputy secretary general, Enrique Mora, and Iranian Deputy Foreign Minister, Abbas Araghchi, attend the summit in Vienna. Reuters
  • The Bushehr nuclear power plant in Iran. AP Photo
    The Bushehr nuclear power plant in Iran. AP Photo
  • Russia's governor to the International Atomic Energy Agency, Mikhail Ulyanov, updates journalists outside the Grand Hotel Wien after a round of closed-door nuclear talks in Vienna. AFP
    Russia's governor to the International Atomic Energy Agency, Mikhail Ulyanov, updates journalists outside the Grand Hotel Wien after a round of closed-door nuclear talks in Vienna. AFP
  • Abbas Araghchi after negotiations come to nothing. EPA
    Abbas Araghchi after negotiations come to nothing. EPA
  • Enrique Mora speaks to the press outside the Grand Hotel Wien where talks were held. AFP
    Enrique Mora speaks to the press outside the Grand Hotel Wien where talks were held. AFP
  • Stephan Klement, EU Ambassador and Special Adviser on Iran Nuclear Issue, attended the talks aimed at reviving the 2015 nuclear deal. EPA
    Stephan Klement, EU Ambassador and Special Adviser on Iran Nuclear Issue, attended the talks aimed at reviving the 2015 nuclear deal. EPA
  • Qun Wang addresses the media in Vienna. EPA
    Qun Wang addresses the media in Vienna. EPA
  • Iran's Governor to the International Atomic Energy Agency (IAEA), Kazem Gharib Abadi is returning to the 'Grand Hotel Wien' during the closed-door nuclear talks in Vienna. AFP
    Iran's Governor to the International Atomic Energy Agency (IAEA), Kazem Gharib Abadi is returning to the 'Grand Hotel Wien' during the closed-door nuclear talks in Vienna. AFP
  • The Grand Hotel Wien held a series of negotiations designed to revive the 2015 nuclear pact. AFP
    The Grand Hotel Wien held a series of negotiations designed to revive the 2015 nuclear pact. AFP

MENA

Iran says it is 'not required' to comply with nuclear inspection request as talks falter

A return to the nuclear deal looks increasingly unlikely, despite Iran's claims of significant progress

The National

June 27, 2021

  • English
  • Arabic

The UN nuclear watchdog has demanded an immediate reply from Iran on whether it would extend a monitoring agreement that expired overnight on Friday.

This prompted an Iranian envoy to say that Tehran was under no obligation to provide an answer.

Iran should engage the IAEA without further delay

The agreement continued the International Atomic Energy Agency's collection of data on some of Tehran's activities, cushioning the blow of Iran's decision in February to reduce co-operation with the agency.

"An immediate response from Iran is needed in this regard," the IAEA said in a statement that summarised a report by its chief Rafael Grossi to its 35-nation Board of Governors.

Mr Grossi wrote to Iran last week "to understand Iran's position regarding the possible continued collection, recording and retention of data", the report said.

As of Friday, Iran had not indicated if it intended to maintain the arrangement, it said.

Iran's ambassador to the IAEA, Kazem Gharibabadi, "said that Iran was not required to comply" with the IAEA head's request, Iran's semi-official news agency Tasnim reported.

Washington believes Tehran should engage the IAEA immediately, said a US State Department official.

Failure to do so would contradict Iran's stated desire for both to resume compliance with the 2015 Joint Comprehensive Plan of Action nuclear deal as soon as possible, said the official.

"Iran should engage the IAEA without further delay to ensure appropriate measures remain in place so the IAEA's continuity of knowledge on JCPOA monitoring can be readily re-established," the US official said on condition of anonymity.

Iran and the US have been holding indirect talks on reviving the 2015 nuclear deal between Tehran and major powers that imposed restrictions on Tehran's nuclear activities in exchange for lifting international sanctions.

The Vienna talks, which began in April, are now in a pause that had been expected to last until early July, but failure to extend the monitoring accord could throw those negotiations into disarray.

"Regarding the IAEA, this remains a serious concern," US Secretary of State Antony Blinken said.

"The concern has been communicated to Iran and needs to be resolved."

The US abandoned the deal under former president Donald Trump in 2018 and re-imposed harsh US sanctions, prompting Iran to respond by breaching many of its restrictions.

Significant differences with Iran 

One of Iran's moves to reduce compliance was its February decision to end the deal's extra IAEA monitoring of some nuclear activities.

The temporary agreement continued that monitoring and a one-month extension ended overnight.

Officials on all sides have said there are major issues to resolve before the nuclear deal can be revived.

"We still have significant differences with Iran," Mr Blinken said, adding that he hoped a resumption of talks in the coming days could settle them.

"We are just not there yet."

While you're here
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

Iran