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: Final regulations allow certain unincorporated organizations, owned fully or partially by "applicable entities," to opt out of partnership tax rules. This change is part of the implementation of the Inflation Reduction Act, which permits applicable entities to treat certain tax credits as payments against their tax liabilities. The final regulations expand the eligibility for organizations to elect out of partnership rules, allowing them to own and operate property for clean energy tax credits through noncorporate entities like LLCs. Additionally, proposed regulations outline further administrative requirements for these elections, including the need to submit specific information and conditions under which elections can be terminated or revoked. Read TaxNewsFlash
- Poland: Legislation was enacted to implement a global minimum tax rate of 15% for large multinational and domestic groups, effective January 1, 2025. This aligns with the global anti-base erosion (GloBE) rules under Pillar Two, targeting groups with annual revenues of €750 million or more. The legislation introduces three top-up taxes—domestic, global, and on undertaxed profits—so that low-taxed entities meet the minimum tax threshold. Exemptions and safe harbors are provided, allowing certain groups to delay the application of these rules for up to five years. Read TaxNewsFlash
- UK: Finance Bill 2024-2025 includes tax measures that would grant Treasury authority to implement the OECD's cryptoassets reporting framework (CARF) in the UK, modify research and development (R&D) tax reliefs for loss-making R&D intensive SMEs, and increase stamp duty land tax (SDLT) rates for residential properties. Additionally, the bill amends the UK's existing Pillar Two rules to align with global tax standards. Read TaxNewsFlash
- Singapore: Parliament has passed two significant bills to implement the multinational enterprise top-up tax (MTT) and the domestic top-up tax (DTT), ensuring a minimum effective tax rate of 15% for MNE groups. These measures, effective January 1, 2025, align with the OECD/G20's Pillar Two rules. Additionally, the Inland Revenue Authority of Singapore (IRAS) updated the list of jurisdictions participating in the exchange of country-by-country (CbC) reports, effective January 1, 2024. Read TaxNewsFlash
