Policy update

Policy & Legal Updates

UAE Enacts Revisions to VAT Regime and Input Tax Recovery Rules

The UAE has introduced significant revisions to its Value Added Tax regime, primarily enacted through Cabinet Decision No. 149 of 2026. The new framework restricts input tax recovery on cash transactions exceeding an upcoming ministerial threshold and mandates supplier integrity checks under FTA Decision No. 13 of 2026. Further clarifications address employee accommodation expenses, capital assets, single composite supplies, and e-invoicing timelines.

Policy & Legal Updates

UAE Enforces New VAT Input Verification Rules Under FTA Decision 13

The UAE Federal Tax Authority's Decision No. 13 of 2026 took effect on 1 October 2026, establishing mandatory procedures to verify supplies before claiming input tax deductions. Under the rules, a valid tax invoice alone is no longer sufficient to recover input VAT. Taxable businesses must carry out due diligence on suppliers to demonstrate reasonable care and prevent transactions tied to tax evasion.

Policy & Legal Updates

China Tightens Offshore Trust and Overseas Income Tax Rules for Resident Individuals

China has implemented strict individual income tax rules for offshore trusts, imposing a 20 percent tax rate across asset funding, trust income, and distributions. The Ministry of Finance and State Taxation Administration established a 90-day transitional compliance window closing on October 22, 2026, allowing taxpayers to settle historical trust liabilities without late surcharges. Cross-border tax enforcement is increasingly supported by automated data exchange under the Common Reporting Standard.

Policy & Legal Updates

Malek Sultan Al Malek Appointed Chairman of Dubai Healthcare City Authority

Sheikh Mohammed bin Rashid Al Maktoum has issued Decree No. (27) of 2026 appointing Malek Sultan Al Malek as Chairman of the Dubai Healthcare City Authority. The decree takes effect from its date of issuance and will be published in the Official Gazette.