Banking, fintech, funds, capital markets and cross-border investment
China's National Development and Reform Commission has unveiled revised outbound investment measures effective December 1, 2026. The new framework replaces the 2017 rules, expanding regulatory oversight to resident individuals and domestic enterprises. Investors must comply with heightened reporting duties for large-scale reinvestments and major adverse overseas events.
The UAE has implemented stricter input VAT recovery standards effective 1 October 2026 under three separate regulatory decisions. Taxable businesses must conduct mandatory supplier and transaction verification checks and can recover staff benefit VAT only within six defined categories. Major purchases settled in cash will also face VAT recovery disallowances under amended executive regulations.
The Registration Authority of Abu Dhabi Global Market has fined MCA Auditors and Advisors LLP and its Audit Principal a combined $88,000 (Dh323,180) following an on-site inspection. The regulator cited multiple audit failings, including weak fraud risk assessments and insufficient evidence on material areas during an engagement for an ADGM-registered company. Regulators credited the firm's cooperation and remediation plan for mitigating the final penalties.
A comparative overview by lovemoney examines personal and commercial tax burdens alongside public services across 25 countries, including the UAE and China. The UAE levies no personal income, capital gains, or inheritance taxes with a 5% VAT, while China imposes income tax brackets between 3% and 45% alongside compulsory social security. Public service provisions differ sharply, from free basic education in China to private healthcare requirements for UAE expatriates.
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