Chairs are spaced for social distancing at a secondary school in Kuwait City that is being used as a polling station for parliamentary elections on December 5, 2020. Reuters
Chairs are spaced for social distancing at a secondary school in Kuwait City that is being used as a polling station for parliamentary elections on December 5, 2020. Reuters
Chairs are spaced for social distancing at a secondary school in Kuwait City that is being used as a polling station for parliamentary elections on December 5, 2020. Reuters
Chairs are spaced for social distancing at a secondary school in Kuwait City that is being used as a polling station for parliamentary elections on December 5, 2020. Reuters

Kuwaitis elect new Parliament under shadow of Covid-19


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Kuwait is holding parliamentary elections on Saturday under the shadow of Covid-19, with facilities laid on for citizens infected with the disease to vote in special polling stations.

The oil-rich country has enforced some of the strictest regulations in the Gulf to combat the spread of the coronavirus, imposing a months-long nationwide lockdown earlier this year.

But while some curbs have eased, over-the-top election events that traditionally draw thousands for lavish banquets are out, masks remain mandatory and temperature checks are routine when venturing outdoors.

Infected people or those under mandatory quarantine are usually confined to home, with electronic wristbands monitoring their movements.

But in an effort to include all constituents, authorities have designated five schools – one in each electoral district – where they can vote, among the 102 polling stations across the country.

Election officials are expected to be in full personal protective equipment.

Kuwait has a lively political life, with a Parliament elected for four-year terms that enjoys wide legislative powers. Political disputes are often fought out in the open.

Parties are not officially recognised, but many groups, including Islamists, operate freely as de facto parties.

But with more than 143,917 coronavirus cases to date, including 886 deaths, the election campaign has been toned down this year.

The polls, which open at 9am, are the first since the new emir, Sheikh Nawaf Al Ahmad Al Sabah, took office in September following the death of his half-brother, 91-year-old Sheikh Sabah Al Ahmad Al Sabah.

But with the opposition weakened in recent years, no major political shifts are expected.

A few electoral banners dotted through the streets have been the only reminder of the nation's political calendar.

Instead, this year's campaign has mainly been fought on social networks and in the media.

More than 567,000 Kuwaiti voters will be eligible to choose among the 326 candidates contesting the vote, including 29 women.

Ahmad Deyain, secretary general of the opposition group Kuwaiti Progressive Movement, said he expected a lower voter turnout than previous years after the low-key campaign.

The usual themes are a constant though, from promises to fight corruption and plans to address youth employment, to freedom of expression, housing, education and the thorny issue of the "bidoon", Kuwait's stateless minority.

From 2009 to 2013, and especially after the Arab uprisings of 2011, the country went through a period of political turmoil, with parliament and cabinets dissolved several times after disputes between lawmakers and the ruling family-led government.

"Kuwait is still undergoing a political crisis since 2011, and that page has not yet turned," Mr Deyain told AFP.

"There are still disputes over the electoral system and mismanagement of state funds."

Mr Deyain said he expected some parliamentarians in the new National Assembly to be "more dynamic" in trying to resolve some issues.

Kuwait was the first Gulf Arab state to adopt a parliamentary system in 1962, and women in 2005 won the right to vote and to stand for election.

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