KPMG Week in Tax: May 12 – 16, 2025

Recent tax developments from around the globe for the week of May 12 – 16, 2025

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 House Ways and Means Committee has approved the tax title for the "One Big Beautiful" bill, which aims to make permanent key provisions of the 2017 Tax Cuts and Jobs Act, introduce new tax benefits, and offset costs through revenue-raising measures like adjustments to the SALT deduction cap and energy tax credits. As the bill progresses through Congress, further changes are possible, and KPMG will provide ongoing updates on this dedicated webpage.
EU: The Economic and Financial Affairs Council has agreed on a draft directive to incentivize the use of the VAT import one-stop-shop (IOSS) by making sellers of low-value imported goods liable for import VAT if not registered under IOSS, requiring non-EU traders to appoint tax representatives, and repealing the special arrangement that shifts VAT obligations to customers. The directive aims to streamline VAT compliance for distance sales of imported goods within the EU and is expected to be formally adopted by July 1, 2028, with potential impacts on direct sellers and marketplaces. Read TaxNewsFlash
Argentina: The Senate approved the Multilateral Instrument (MLI) to implement tax treaty-related measures to prevent BEPS, which will take effect after executive promulgation and OECD deposit. The MLI's implementation will impact multinational enterprises by introducing key aspects such as the principal purpose test (PPT) and changes to the concept of permanent establishment (PE), aiming to enhance the integrity of the international tax system and reduce tax avoidance. Read TaxNewsFlash

United States

The House Ways and Means Committee approved the tax title for the “One Big Beautiful” bill. Further changes to the tax title could occur as the bill is considered by the House Budget or Rules Committee, or even on the floor of the House during debate. In addition, the Senate could ultimately adopt tax provisions with significant differences as it considers its own version of the bill. KPMG will continue to provide updates as the bill works its way through the process in Congress.

For KPMG analysis and observations regarding sector or industry-specific provisions in the bill, read TaxNewsFlash.

Read TaxNewsFlash-Legislative Updates

Notice 2025-25: Carbon oxide sequestration credit under section 45Q, inflation adjustment factor for 2025
Notice 2025-26: Reference price under section 45K(d)(2)(C) for 2024
Rev. Rul. 2025-11: Interest rates, tax underpayments and overpayments remain same for third quarter 2025
Notices of filing of petitions for addition of six substances to Superfund list
Notices of filing of petitions for addition of Di-IsoNonyl Phthalate and Linear Nonyl UnDecyl Phthalate to Superfund list
Notices of filing of petitions for addition of nine substances to Superfund list
KPMG article: Dispute prevention and resolution options
KPMG article: Need to modernize definition of software for domestic manufacturing incentive

Read TaxNewsFlash-United States

Transfer Pricing

Kenya: Tax proposals in Finance Bill 2025, including introduction of APAs
Korea: Right to claim refund of wrongly withheld tax (Supreme Court decision); VAT monthly reporting; obligation to file CbC report; other tax developments

Read TaxNewsFlash-Transfer Pricing

Africa

Kenya: Tax proposals in Finance Bill 2025, including introduction of APAs
Mozambique: New procedures for monthly reporting of VAT invoices

Read TaxNewsFlash-Africa

Americas

Argentina: Senate approves MLI to prevent base erosion and profit shifting (BEPS)
Bermuda: 2025-2026 budget proposes range of tax relief measures
Jamaica: Proposed expansion of agricultural vehicle duty concession

Read TaxNewsFlash-Americas

Asia Pacific

Australia: Final guidance on payment times reporting rules
Australia: Proposed extension of “off-the-plan” stamp duty concession (Victoria)
Australia: Tax measures in 2025 budget (Northern Territory)
Hong Kong: Legislation implementing company re-domiciliation regime passed by Legislative Council
India: Fair market value basis for asset received in liquidation (High Court decision)
Korea: Right to claim refund of wrongly withheld tax (Supreme Court decision); VAT monthly reporting; obligation to file CbC report; other tax developments
Malaysia: Tax developments summary (May 2025)
Philippines: Guidance on application of VAT on cross-border digital services rules

Read TaxNewsFlash-Asia Pacific

Europe

Albania: Tax authorities enforcing nonresident VAT digital services rules
Austria: Exclusion of nonresident investment funds from dividend withholding tax refunds compatible with EU law (CJEU judgment)
Denmark: VAT-registered entities subject to new digital bookkeeping requirements as of January 1, 2026
EU: Draft directive to incentivize the use of VAT import one-stop-shop (IOSS)
Latvia: Special tax regime for consumer credit service providers held constitutional (court decision)
Poland: Amendments to corporate income tax and VAT laws passed by Council of Ministers
UK: Refund claims for stamp duty land tax (court decisions)
UK: Treatment of distribution as dividend not of capital nature determined under foreign law (Court of Appeal decision)

Read TaxNewsFlash-Europe

FATCA / IGA / CRS

Anguilla: Compliance updates regarding FATCA and CRS
Germany: FATCA reporting deadline is July 31, 2025
Italy: Updated FATCA and CRS guidance
Panama: Clarification on GIIN limitations for classifying account holders as financial institutions

Read TaxNewsFlash-FATCA / IGA / CRS

Trade & Customs

U.S. CBP implements tariff modifications to address “stacking”
United States and China announce trade agreement
European Commission issues consolidated list of “Classification Regulations”

Read TradeNewsFlash-Trade & Customs

Exempt Organizations

The House Ways and Means Committee approved the tax title for the budget reconciliation bill. Read a KPMG report that provides initial analysis and observations regarding the provisions in the bill related to tax-exempt organizations

Read TaxNewsFlash-Exempt Organizations

Other publications

The items described above are also reported as editions of TaxNewsFlash:

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