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). Highlights include:
- United States: The White House announced adjustments to tariffs on imports from Canada and Mexico to align with the automotive supply chain structure and minimize disruption to the U.S. automotive industry, including a 25% tariff on non-USMCA compliant goods, and a 10% tariff on certain energy products and potash from Canada and Mexico. In other tariff news, Canada and China requested dispute consultations with the United States at the World Trade Organizations concerning new U.S. tariff measures. Read TradeNewsFlash
- UAE: The Ministry of Finance has released FAQs about its Pillar Two domestic minimum top-up tax (DMTT), which is expected to achieve "qualified" status under the OECD peer review process due to its alignment with global anti-base erosion rules. While the UAE has opted not to implement the income inclusion rule (IIR) or a controlled foreign company regime at this time, it will monitor the DMTT's effectiveness and may consider future changes, ensuring compliance with local financial standards and allowing qualifying free zone persons to comply if thresholds are met. Read TaxNewsFlash
- Serbia: The Ministry of Finance has issued a rulebook on arm’s length interest rates for 2025, effective March 8, 2025, allowing taxpayers to choose between using prescribed interest rates or applying OECD-based methods for determining arm’s length interest, with the requirement that the chosen method be consistently applied to all intercompany loans. The rulebook specifies different interest rates for long-term and short-term borrowings for non-finance entities and a single rate for banks and finance leasing companies, except for RSD denominated loans, which have separate rates for short-term and long-term loans. Read TaxNewsFlash