KPMG Week in Tax: October 6 – 10, 2025

Recent tax developments from around the globe for the week of October 6 – 10, 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: Notice 2025-55 grants penalty relief for remittance transfer providers who fail to correctly deposit the new 1% excise tax on certain remittance transfers during the first three quarters of 2026, provided they make timely deposits and pay any underpayment by the quarterly deadline. This temporary relief acknowledges implementation challenges with the new law (“One Big Beautiful Bill Act”) and aims to support sound tax administration as remittance transfer providers adjust to new compliance requirements. Read TaxNewsFlash
Ireland: The 2026 budget maintains income tax rates but introduces targeted reliefs and extensions for housing, electric vehicles, and business incentives, including enhanced R&D credits and property tax deductions. Key changes include phased e-invoicing rollout, reduced VAT rates for apartments and certain services, increased excise and carbon taxes, and expanded support for innovation, property development, and sustainability. Read TaxNewsFlash
Bhutan: A new goods and services tax (GST) regime effective January 1, 2026, is scheduled to replace the sales tax system with a standard 5% rate. The new regime will impose GST registration and collection obligations on nonresident providers of imported business-to-consumer (B2C) services, including digital and electronic services. The law sets clear registration thresholds, marketplace liability rules, and penalties. Read TaxNewsFlash

United States

IRS memorandum on changes to procedures for designation of partnership representative
KPMG report: Revised Form 8979 for designation or resignation of partnership representative
IRS-wide furlough as a result of government shutdown
KPMG article: Insights on IRS-wide furlough as a result of government shutdown
Notice 2025-55: Penalty relief for remittance transfer providers who fail to deposit new excise tax on certain remittance transfers
Rev. Proc. 2025-32: Inflation adjustments for 2026, individual taxpayers
Treasury announces Frank Bisignano will serve as “CEO” of IRS; Jarod Koopman named IRS Acting Chief Tax Compliance Officer
KPMG article: New notices make CAMT regime more favorable but more complex

Read TaxNewsFlash-United States

Transfer Pricing

Belgium: Draft legislation amending Pillar Two rules
Israel: Draft Pillar Two legislation
Romania: Form for declaration and payment of Pillar Two taxes approved

Read TaxNewsFlash-Transfer Pricing

FATCA / IGA / CRS

Bahamas: FATCA and CRS reporting deadlines
Germany: New mass data interface for CRS reporting

Read TaxNewsFlash-FATCA / IGA / CRS

Trade & Customs

Argentina: Implementation of remote “monitored export” procedure
KPMG article: Latest developments in customs enforcement
U.S. BIS amends Export Administration Regulations (EAR) by adding entities in China, Turkey, and UAE to Entity List

Read TradeNewsFlash-Trade & Customs

Americas

Argentina: Implementation of remote “monitored export” procedure
Colombia: Individuals may apply for VAT benefits on acquisition of hybrid or electric vehicles for personal use
Costa Rica: Adjustments to deadlines and procedures ahead of launch of new digital tax platform
Panama: Modification to deadlines for correcting applications for income tax treaty benefits

Read TaxNewsFlash-Americas

Asia Pacific

Australia: Bills concerning beneficial ownership disclosure, superannuation, regulatory reform, draught beer excise and customs duty
Bhutan: New GST regime to replace existing sales tax framework
India: Application of principal purpose test in MLI requires separate notification under India-Ireland treaty (tribunal decision)
India: Government tax policy group recommends presumptive taxation regime for foreign taxpayers to mitigate disputes regarding PE and profit attribution
Israel: Draft Pillar Two legislation
Oman: Implementation of e-invoicing from August 2026
Sri Lanka: Amendments to social security contribution levy law
Sri Lanka: Guidance on risk-based refund scheme under VAT law
Sri Lanka: Postponement of implementation of VAT on services supplied through electronic platforms by nonresident providers
Taiwan: Guidance on capitalization of expenses, foreign tax credits, controlled foreign company rules

Read TaxNewsFlash-Asia Pacific

Europe

Belgium: Draft legislation amending Pillar Two rules
Cyprus: Submission of withholding tax declarations and payments with respect to certain transactions with nonresidents must be made via Tax For All (TFA) system
EU: CJEU confirms electronic marketplaces qualify as undisclosed agents pre-2015 amendments
EU: CJEU lacks jurisdiction in case regarding capital gains taxation under special levy (Slovakia)
EU: European Commission recommendation on increasing availability of tax-advantaged savings and investment accounts (SIAs)
EU: Updated list of non-cooperative tax jurisdictions
Hungary: Guidelines on VAT group succession issues
Ireland: Direct and indirect tax measures in 2026 budget
Ireland: Phased rollout of mandatory e-invoicing and real-time VAT reporting
KPMG report: Global tax and legal ESG-related developments
Moldova: Guidance on deductibility of expenses for optional insurance, VAT exemption for construction and installation services for photovoltaic parks
North Macedonia: Draft law on tax incentives for “business angel” individual investors
North Macedonia: E-invoicing to launch third quarter of 2026
Poland: Bill increasing corporate income tax rate on banks passed by Council of Ministers
Poland: Extension of 50% VAT deduction limit approved by EU Council
Poland: Ordering party paying subcontractor must use split payment mechanism under VAT law (Supreme Administrative Court decision)
Romania: Form for declaration and payment of Pillar Two taxes approved
Sweden: New rules for approval and revocation of “F-tax”
Sweden: Updated guidance on application of VAT to asset transfers as part of business transfers

Read TaxNewsFlash-Europe

Other publications

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

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