The US embassy complex in Baghdad. AFP
The US embassy complex in Baghdad. AFP
The US embassy complex in Baghdad. AFP
The US embassy complex in Baghdad. AFP

Iraq asks Iran to intervene to halt attacks on diplomatic missions


Mina Aldroubi
  • English
  • Arabic

Iraq asked neighbouring Iran to intervene to stop the targeting of diplomatic missions in the Green Zone, Iraq's foreign minister said on Monday.

The embassies of several western countries, including the US, are in the Green Zone. It is considered a safe area in Baghdad, but has been the target of several rocket attacks in the past year.

“The government has taken several security and military measures since the attacks on the Green Zone began and by taking political steps to overcome these such as reaching out to Iran which occurred during my visit to Tehran,” Fuad Hussein said during an interview with Al Arabiya.

The Iraqi minister described the attacks as an “embarrassment” to the government.

Mr Hussein said that Iraqi forces had arrested several perpetrators who they suspected were linked to the attacks.

“We are working hard to stop these attacks from occurring,” he said.

Mr Hussein indicated that Washington may take drastic measures if its embassy is continuously targeted.

Baghdad accuses “outlaw groups” of launching the attacks but Washington blames Iranian-backed militias but no side has claimed responsibility.

“The government is working to place weapons under its control before elections this year,” he said, adding that the UN is working alongside the government to ensure its success.

Rockets have often been fired at the embassy to protest the presence of US troops in Iraq.

Tensions between Iran and the US increased during the last year following rocket attacks on Iraqi bases hosting American forces and US airstrikes against militia groups this year.

In early January 2020, a US strike killed a top Iranian general, Qassem Suliemani, and Iraqi militia leader Abu Mahdi Al Muhandis in Baghdad.

Mr Hussein said he rejected foreign interference in his country's internal affairs, stressing that the tension between Washington and Tehran has negatively impacted Iraq’s security.

Outgoing US President Donald Trump has vowed to reduce the number of US forces stationed in Iraq before leaving office.

This week the Pentagon said the drawdown of troops in Iraq has been completed. There are now 2,500 US service members in the country.

In response to the American strike that killed Suliemani the Iraqi Parliament voted to remove all foreign troops from the country.

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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. 

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Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

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Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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