KPMG Week in Tax—published weekly to provide an overview of tax developments as reported in TaxNewsFlash—includes summaries of select tax-related news followed by a full list of reports (more information can be found at the links provided).
- United States: The U.S. Treasury Department and IRS released final regulations for the advanced manufacturing production credit under section 45X and the advanced manufacturing investment credit under section 48D, both established to incentivize U.S. production of eligible components and semiconductors. Additionally, proposed regulations for the energy efficient home improvement credit under section 25C provide guidance on qualifying property, credit calculations, and manufacturer requirements.
- Austria: Only one constituent entity is designated as the Pillar Two taxpayer responsible for submitting declarations and paying top-up tax. If multiple entities exist, the “top” entity or the most economically significant one is chosen. The ultimate parent entity (UPE) can appoint an alternative entity as the taxpayer. For calendar year taxpayers, this appointment must be filed by December 31, 2024, with proof uploaded to FinanzOnline.
- Italy: A proposal to remove the revenue thresholds for purposes of the Italian digital service tax (DST) will be discussed in Parliament over the coming weeks.
- Malaysia: The 2025 budget focuses on revising the sales and service tax regime, increasing sales tax on non-essential items, expanding service tax to commercial services between businesses, and phasing in higher excise duties on sugar-sweetened beverages. Additionally, it introduces direct tax proposals including a 2% dividend tax on high local dividend income, extended personal income tax reliefs, and new investment incentives.
