President Ebrahim Raisi addressing the 76th Session of the United Nations General Assembly. EPA
President Ebrahim Raisi addressing the 76th Session of the United Nations General Assembly. EPA
President Ebrahim Raisi addressing the 76th Session of the United Nations General Assembly. EPA
President Ebrahim Raisi addressing the 76th Session of the United Nations General Assembly. EPA


After UNGA, what have we learned about Iranian President Raisi's foreign policy?


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September 24, 2021

On the 34th floor of a skyscraper on a busy Manhattan intersection is Iran’s only diplomatic presence in the US: its permanent mission to the UN. Its embassy in Washington has been closed for decades, as has the US embassy in Tehran. The Iranian New York mission, however, has remained a rare constant, and a reminder that even in the face of deep bilateral tensions, countries always have an opportunity to engage on the world stage.

The UN, particularly its annual UN General Assembly (UNGA), gives all countries, big and small, a moment to announce their geopolitical priorities in front of the world. This is even more consequential for countries such as Iran, whose tendency towards unpredictable and dogmatic foreign policy often isolates it on the international stage. At the UN, the world gets a strong sense of where Tehran intends to head that year, for better or worse.

In the aftermath of 9/11, former Iranian president Mohammad Khatami grabbed the world's attention, particularly in the West, with a speech at the Assembly in firm solidarity with the victims of the attacks, labelling the terrorists responsible as a “cult of fanatics who had self-mutilated their ears and tongues”. He called for all countries around the world to foster harmony and empathy and enter into a dialogue of civilisations. It was arguably the most conciliatory gesture from an Iranian president since 1979. On the other hand, former president Mahmoud Ahmadinejad used the platform on multiple occasions to imply 9/11 was a conspiracy.

Former Iranian president Mohammad Khatami gave a famous and conciliatory speech at the UN in 2001. Tara
Former Iranian president Mohammad Khatami gave a famous and conciliatory speech at the UN in 2001. Tara

Today at the 76th UNGA, Iran's new President, Ebrahim Raisi, is giving the world similar clues as to what his administration will mean for Iran's global position. While he has not taken the conspiratorial path of Mr Ahmadinejad, early remarks make it clear that he is also not pursuing Mr Khatami's conciliatory tone. The new President has already hailed the end of US "hegemony" in international affairs, saying that the "project of imposing westernised identity has failed miserably”.

Outside the UN, Mr Raisi has been busy pursuing diplomatic initiatives that play well to his conservative base. He constantly stresses the need for western powers to restore Iranian trust in negotiations for a new nuclear deal, stressing that talks must ensure his country's "rights". On Sunday, he met Japanese Foreign Minister Toshimitsu Motegi to ask Toyko to release funds that have been frozen in Japan because of US sanctions.

It is of course legitimate for Iran to voice constructive diplomatic cases to the world, both at the UN and outside. In return, it must expect them from others, too. It must acknowledge petitions such as Wednesday's call from Saudi Arabia's King Salman to keep nuclear weapons out of the Middle East. It must allow the work of the International Atomic Energy Agency, the UN nuclear watchdog, which earlier this month described how Tehran had hampered its inspectors at the Natanz nuclear facility. And Yemenis, 16 million of whom are at risk of starvation according to the UN's World Food Programme, deserve Iran's input in solving the country's conflict and reining in the Houthis, a particularly violent Iranian proxy.

Iran must realise that the respect it demands from other countries will only be won if it, too, shows willingness to engage and listen to the countries and organisations that are concerned about its destabilising activity. Going into his presidency, there may be a temptation for Mr Raisi to use platforms such as the UNGA to deliver the defiant, aggressive statements of old. This would be missing the point of the world gathering at the UN to come up with necessary solutions.

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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