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).
- Belgium: A proposed bill would introduce a 3% digital services tax effective January 1, 2027, for multinational groups with over €750 million in annual global revenue and €3 million in Belgian digital revenue. The tax applies to gross revenue from targeted advertising, digital intermediation, and user data monetization involving users located in Belgium. Read TaxNewsFlash
- Philippines: The Bureau of Internal Revenue clarified that cross-border services are not automatically subject to income tax, but are instead evaluated based on where the service is completed or the benefit is received. Taxpayers can substantiate that income is sourced outside the country and exempt from local tax by providing specific documentation such as service contracts, invoices, and tax residency certifications. Read TaxNewsFlash
- United States: The U.S. Court of Appeals for the Tenth Circuit affirmed the denial of a taxpayer's $109 million refund claim, holding that the codified economic substance doctrine under section 7701(o) was relevant to its 2018 transaction. The court determined the doctrine applies when transactions serve no economic purpose other than to mechanically exploit tax code provisions, such as the section 245A deduction, for unintended tax benefits. Read TaxNewsFlash