Tax developments or tax-related items reported this week include the following.


  • Nigeria: The Federal Inland Revenue Service (FIRS) and Lagos Internal Revenue Service (LIRS) signed a memorandum of understanding to establish a joint tax audit and investigation team. 

Read TaxNewsFlash-Africa


  • Canada: Registered charities, public sector entities and non-profit organizations (NPOs) may have obligations under the underused housing tax (UHT) rules due 30 April 2023.
  • Mexico: The Second Chamber of the Supreme Court held that the figure of “compensation,” applicable in civil law, does not constitute a means of payment of value added tax (VAT) and thus cannot give rise to refund requests or creditable VAT. 
  • Mexico: The tax administration published a list of the 182 foreign providers of digital services that are registered for tax purposes in Mexico as of 28 February 2023.
  • Barbados: The 2023 budget includes tax-related measures concerning VAT and tax credits.
  • Canada: The 2023 federal budget will be presented on 28 March 2023, with expected tax changes.

Read TaxNewsFlash-Americas

Asia Pacific

  • Indonesia: The government issued guidance concerning the customs obligations for imported goods-for-use, including intangible goods such as software and digital products that are transmitted electronically.
  • New Zealand: The government added additional measures to the Taxation (Annual Rates for 2022-23, Platform Economy, and Remedial Matters) Bill (No 2) focused on providing tax relief for individuals and businesses affected by certain North Island weather events in January and February.
  • Thailand: The Thai Cabinet approved an extension of tax measures to support the e-tax systems for another three years (from 1 January 2023 to 31 December 2025), aiming to promote the continuous use of the e-tax invoice, e-receipt, and e-withholding tax systems, as well as to encourage taxpayers to deduct and remit taxes through the e-withholding tax system.
  • India: A tribunal held that amounts received by the taxpayer (a U.S. company) as reimbursement for the salaries of its employees who were seconded to its Indian subsidiary, were not properly treated as fees for technical services under the Income Tax Act, 1961, or fees for included services under the United States-India income tax treaty. The tribunal observed that the employees were working solely under the control and supervision of the Indian company, the taxpayer’s role was merely to facilitate payment of salaries on behalf of the Indian company, and the India company had duly deducted tax at source on the salaries paid to the seconded employees.
  • India: A high court held that reassessment notices issued after 31 March 2021 under the new reassessment regime were time-barred because the maximum limitation period of six years under the old regime to reopen the reassessment had expired. The court determined that the extension of time to issue reassessment notices under the old reassessment regime to 30 June 2021 did not apply to reassessment notices issued under the new reassessment regime.
  • India: A tribunal held that the taxpayer, a Singaporean company, was entitled to claim benefits under the Singapore-India income tax treaty on capital gains recognized from the sale of shares in an Indian company because the taxpayer had furnished a valid tax residency certificate (TRC) issued by Singaporean tax authorities.
  • Malaysia: A monthly summary of tax developments includes a discussion of income tax and indirect tax changes.
  • Saudi Arabia: The Zakat, Tax and Customs Authority (ZATCA) published draft amendments to the Zakat implementing regulations for public consultation. The deadline for submitting comments on the draft amendments was 14 March 2023.

Read TaxNewsFlash-Asia Pacific


  • Cyprus: The tax authority announced that all VAT and VAT information exchange system (VIES) payments must be made through the new single tax administration portal Tax For All (TFA), which replaces the TAXISnet website.
  • Ireland: A KPMG report provides what the R&D tax credit is, how it works, and how to qualify.
  • UK: The “Spring Budget” includes tax measures concerning businesses, individuals, and employers.
  • EU: The European Commission approved new temporary State aid rules to support green transition.
  • Netherlands: The Dutch Ministry of Finance launched an internet consultation on a bill containing changes to the fiscal and the exempt investment institution, and a change in the definition of a taxable mutual fund.
  • Poland: The Minister of Finance extended the deadline for submitting to tax authorities reports on contracts entered into with non-residents (ORD-U), from three to eleven months. The extended deadline relates to ORD-U reports submitted for tax years beginning after 31 December 2021.
  • Poland: The Supreme Administrative Court issued decisions concerning the scope of debt financing expenses and taxation of cross-border employees.
  • Poland: A clearance opinion of the Head of the National Revenue Administration relates to making new investments in industrial automation.
  • Poland: Tax consultations regarding introduction of the concept of VAT warehouses into the Polish legal framework have begun. The consultation process is open until 3 April 2023.
  • Czech Republic: The government approved an amendment to the decree on compensation paid to suppliers for the delivery of electricity and gas at fixed prices, that removes a provision specifying that such compensation is not subject to VAT.
  • Czech Republic: The Supreme Administrative Court held that a taxpayer was not the owner of goods for VAT purposes and thus was not entitled to deduct VAT with respect to such goods.
  • Czech Republic: The General Financial Directorate published guidance summarizing the VAT, individual (personal) income tax, and road tax obligations for entities providing passenger transport through mobile applications effective 1 January 2023.

Read TaxNewsFlash-Europe

Transfer Pricing

  • OECD: The OECD/G20 Inclusive Framework on BEPS held a virtual meeting to discuss the input received on its public consultation documents on implementation under Pillar Two relating to the GloBE Information Return and Tax Certainty for the GloBE Rules.
  • Poland: The Minister of Finance extended the deadline for submitting to tax authorities reports on contracts entered into with non-residents (ORD-U), from three to eleven months. The extended deadline relates to ORD-U reports submitted for tax years beginning after 31 December 2021.
  • India: A tribunal held that a transaction with an unrelated entity is subject to the transfer pricing regulations if the entity becomes an associated enterprise in the same tax year. The tribunal also held that a transfer of shares on a stock exchange cannot be equated with a transfer of shares involving controlling interest and that the discounted cash flow method used by the tax authority was appropriate for the valuation of listed equity shares.
  • Thailand: The Thai Cabinet approved measures to support the implementation of a global minimum tax as part of the BEPS 2.0 Pillar Two rules issued by the OECD and assigned relevant government agencies to carry out these measures as proposed by the Board of Investment of Thailand.

Read TaxNewsFlash-Transfer Pricing


  • Guernsey: The tax authority issued guidance on updates to U.S. taxpayer identification number (TIN) obligations and related determinations of significant non-compliance for FATCA purposes.

Read TaxNewsFlash-FATCA / IGA / CRS

United States

  • The U.S. Treasury Department last week released its “Green Book,” which explains the administration’s FY 2024 revenue proposals. Read a KPMG report [PDF 1.4 MB] (76 pages) about the tax proposals in the Green Book.

Read TaxNewsFlash-Biden Tax Agenda

  • The IRS released “frequently asked questions” addressing whether certain costs related to nutrition, wellness, and general health are medical expenses that may be paid or reimbursed under a health savings account (HSA), health flexible spending arrangement (FSA), Archer medical savings account (Archer MSA), or health reimbursement arrangement (HRA).
  • The Financial Accounting Standards Board published a proposed Accounting Standards Update addressing requests for improved income tax disclosures from investors, lenders, creditors, and other allocators of capital that use the financial statements to make capital allocation decisions.
  • Notice 2023-26 provides the adjustments to the limitation on housing expenses, under section 911, for specific locations for 2023.
  • A notice of filing announced that a petition has been filed requesting that cellulose acetate (degree of substitution = 1.5 – 2.0) be added to the list of taxable substances under section 4672(a).
  • OMB’s Office of Information and Regulatory Affairs (OIRA) reported it completed its review of proposed regulations concerning the Superfund chemical tax and Superfund imported substance tax.
  • Daniel Werfel was sworn in as the Commissioner of Internal Revenue. Werfel's term will run through 12 November 2027.
  • Rev. Proc. 2023-19 provides information to any individual who failed to meet the eligibility requirements of section 911(d)(1) for 2022 because of adverse conditions in a foreign country.
  • Taxpayers in California affected by March storms, flooding, landslides, and mudslides now have until 16 October 2023 to file various individual and business tax returns and make tax payments.
  • A KPMG report discusses the reporting process for digital assets, including legislative challenges, executive proposals, and a possible crackdown on crypto reporting.

State and local tax

  • California: The Controller’s website was updated to provide guidance concerning the recently established unclaimed property voluntary compliance program (VCP), including details of the program and a form for interested holders to start the process of applying for participation in the VCP.
  • Minnesota: The state tax authority posted additional guidance for marketplace providers.
  • Texas: The Comptroller amended the rule addressing apportionment for purposes of the franchise tax. The amended rule removes the “receipts-producing, end-product act” test that was invalidated by the Texas Supreme Court in the Sirius XM decision.
  • Wisconsin: The Wisconsin Tax Appeals Commission held that an operator of an online ticket marketplace was liable for approximately $8.5 million in Wisconsin sales and use tax (as well as additional penalties and interest over $8.5 million) for tax years prior to the adoption of a Wisconsin law requiring marketplace facilitators to collect and remit sales tax.

Read TaxNewsFlash-United States

Exempt Organizations

  • The Biden Administration’s FY 2024 budget includes two proposals related to private foundations.

Read TaxNewsFlash-Exempt Organizations

Trade & Customs

  • The U.S. International Trade Commission (ITC) released a report that states additional U.S. tariffs imposed under Section 232 on imports of steel and aluminum products and under Section 301 on certain imports from China reduced U.S. imports of these products and increased U.S. production and prices of these products.

Read TradeNewsFlash-Trade & Customs

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.