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KPMG Week in Tax: December 22, 2025 – January 2, 2026

Recent tax developments from around the globe for the weeks of December 22, 2025 – January 2, 2026

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january 5, 2026

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: Proposed regulations would implement the new deduction of up to $10,000 for qualified passenger vehicle loan interest, available for loans incurred after December 31, 2024, and before January 1, 2029, including for non-itemizers. The rules clarify eligibility, reporting requirements, and compliance obligations for both taxpayers and lenders. Read TaxNewsFlash
  • Hungary: The advertisement tax regime will be reinstated on July 1, 2026, requiring both resident and nonresident media publishers and service providers targeting Hungarian audiences to pay a 7.5% tax on net ad revenue above HUF 100 million, with additional 5% secondary tax obligations for advertisers lacking proof of publisher compliance. The regime imposes registration, reporting, and payment requirements, with escalating penalties for non-compliance, and applies broadly to TV, radio, print, outdoor, and online ads in Hungarian. Read TaxNewsFlash
  • Colombia: An emergency fiscal package introduces temporary tax hikes and new levies—including increased value added tax (VAT) rates on alcohol and online gaming, expanded wealth and excise taxes, a 15% surtax for financial sector income, and a 1% tax on hydrocarbons/coal extraction—to boost 2026 budget revenues, while also providing penalty relief and asset normalization incentives. Read TaxNewsFlash

United States

  • Announcement 2026-1: Information regarding claims under section 6435 for tax paid on dyed fuel
  • IRS annual revenue procedures for 2026
  • IRS issues FAQs regarding section 163(j) limitation following amendments by OBBBA
  • IRS provides tax relief for taxpayers affected by storms, winds, flooding, landslides, and mudslides in Washington State
  • IRS requests comments on proposed updates to Voluntary Disclosure Practice
  • KPMG article: Lummis crypto bill and White House report on digital assets
  • KPMG report: Final and proposed section 892 regulations
  • Notice 2026-3: Estimated tax penalty relief for elections under section 1062 to defer gain from sale of qualified farmland property
  • Notice 2026-10: Standard mileage rates for 2026
  • Proposed regulations: Amendments to branded prescription drug annual fee regulations
  • Proposed regulations: Deduction for qualified passenger vehicle loan interest enacted under OBBBA
  • “Oil spill tax” imposed under section 4611 expired on December 31, 2025
  • U.S. Treasury announces New Markets Tax Credit (NMTC) awards

Read TaxNewsFlash-United States

  • President Trump signs into law Disaster Related Extension of Deadlines Act

Read TaxNewsFlash-Legislative Updates

Trade & Customs

  • United States postpones increase in tariffs on imports of certain wood products
  • U.S. CBP announces all refunds will be issued electronically beginning February 6, 2026
  • United States amends ITAR to facilitate defense trade with Australia and the UK
  • United States extends duty-free treatment of agricultural products from Israel
  • USTR announces tariffs following Section 301 investigation into China's semiconductor industry practices
  • USTR implementation of tariff increases on imports from Nicaragua

Read TradeNewsFlash-Trade & Customs

Americas

  • Colombia: Emergency tax measures to fund 2026 national budget adopted
  • Colombia: Proposed tax measures to fund national budget
  • Mexico: Miscellaneous tax resolution for FY2026

Read TaxNewsFlash-Americas

Asia Pacific

  • Bahrain: Updated VAT deregistration manual and domestic minimum top-up tax (DMTT) FAQs
  • China: Annual APA report
  • Hong Kong: Income tax treaty with Norway signed
  • India: Income from delivery order charges not subject to tax in India under UK treaty (tribunal decision)
  • Sri Lanka: Amendments to social security contribution law
  • UAE: Amendments to corporate tax law relating to tax credits and incentives
  • UAE: Guidance on tax compliance obligations for qualifying investment funds and their investors

Read TaxNewsFlash-Asia Pacific

Europe

  • Norway: Income tax treaty with Hong Kong signed
  • Hungary: Advertisement tax regime to resume July 1, 2026
  • Netherlands: Interest expense may be non-deductible when acquisitions financed with shareholder loans (Supreme Court decision)
  • Poland: 2026 budget bill adopted by upper house of Parliament with amendments; various tax-related bills acted upon by president
  • Poland: Implementing regulations for national e-invoicing system (KSeF)
  • Poland: Remitter of dividends obligated to verify authenticity of ownership structure (Supreme Administrative Court decision)
  • Romania: Proposed amendments to tax procedure law submitted to Parliament
  • Romania: Rules for special scheme for import VAT declaration and payment
  • Romania: Tax treaties with Andorra and UK ratified
  • Serbia: Amendments to excise tax law include gradual increase in excise taxes on tobacco products
  • UK: VAT costs deductible when professional fees directly linked to taxable sale (Supreme Court decision)

Read TaxNewsFlash-Europe

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