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KPMG Week in Tax: April 27 – May 1, 2026

Recent tax developments from around the globe for the week of April 27 – May 1, 2026

May 4, 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).

  • EU: The European Commission is referring Hungary to the CJEU because its progressive retail tax regime allegedly violates the freedom of establishment by disproportionately burdening foreign-controlled retailers compared to domestic franchise operators by heavily taxing consolidated turnover. Read TaxNewsFlash
  • UAE: The Ministry of Finance has launched a voluntary 4-Corner e-invoicing model to facilitate secure, direct invoice exchanges between businesses via accredited service providers. This initiative serves as a strategic transition toward the comprehensive 5-Corner e-invoicing and tax reporting system, which will undergo a phased mandatory rollout beginning in mid-2026. Read TaxNewsFlash
  • United States: The Treasury Department and IRS issued temporary regulations establishing procedures for taxpayers to recover previously paid excise taxes on diesel and kerosene that later qualify as exempt dyed fuel. Effective May 1, 2026, these rules clarify that only the entity that originally paid the tax is authorized to claim the refund. Read TaxNewsFlash

United States

  • Temporary and proposed regulations: Claims under section 6435 for tax paid on dyed fuel
  • Final regulations: Income from Indian fishing rights-related activity may be treated as compensation under section 415
  • IRS announces new process for extending time to review disallowed ERC claims
  • Notice 2026-27: Mortality tables for defined benefit pension plans (2027)
  • United States and Croatia sign protocol to 2022 income tax treaty

Read TaxNewsFlash-United States

  • House passes clean FY 2026 budget resolution
  • House passes seven bills aimed at providing taxpayer assistance and improving tax administration

Read TaxNewsFlash-Legislative Updates

Transfer Pricing

  • OECD: Toolkit for implementing global minimum tax
  • Serbia: Rulebook on arm’s length interest rates for 2026
  • UK: Updated intangible assets manual to reflect Finance Act 2026 changes
  • Germany: Legislation to expand MLI to 62 additional treaties passed by lower house of Parliament; other tax developments

Read TaxNewsFlash-Transfer Pricing

FATCA / CRS / CARF

  • Australia: Transition to CRS XML schema 3.0
  • Belgium: Updates on implementing Council Directive (EU) 2023/2226 in line with CRS 2.0
  • Germany: Updated FATCA guidance
  • Liechtenstein: Updated CRS guidance, including implementation of CRS 2.0
  • United States: FATCA IDES testing scheduled for June 2026

Read TaxNewsFlash-FATCA / CRS / CARF

Trade & Customs

  • Argentina: Expansion of factory customs regime
  • EU: 20th package of sanctions against Russia
  • United States: 2026 “Special 301 Report” on IP rights
  • Vietnam: Guidance on customs procedures and tax declarations

Read TradeNewsFlash-Trade & Customs

Africa

  • Africa: VAT implementation in Liberia starts in 2027; other recent tax developments
  • South Africa: Revised guidance on section 24C relating to timing mismatches of income and expense

Read TaxNewsFlash-Africa

Americas

  • Argentina: Expansion of factory customs regime
  • Canada: Tax measures in 2026 budget (Newfoundland and Labrador)
  • Canada: Tax proposals in 2026 Spring Economic Update
  • Costa Rica: Guidance on taxation of gains from transfer of ongoing business
  • Costa Rica: Reduction in specific tax on tobacco products
  • Grenada: Proposal requiring nonresident digital services providers to register for VAT

Read TaxNewsFlash-Americas

Asia Pacific

  • Australia: Consultation on draft legislation introducing news media bargaining incentive charge
  • Australia: Government response to committee recommendations to enhance instant asset write-off legislation
  • Australia: KPMG comments on draft legislation to strengthen capital gains tax rules for foreign residents
  • Australia: Senate Committee report on amendments to exclude tobacco, gambling from R&D tax incentive
  • Cambodia: VAT relief for petroleum products
  • India: Capital gains from trading of stock derivatives not taxable under Mauritius treaty (tribunal decision); other direct and indirect tax developments
  • India: Lower dividend tax rate under UK treaty not appliable to dividend distribution tax (High Court decision)
  • Taiwan: Guidance on qualification of salary expenditures for investment tax credit
  • UAE: Voluntary e-invoicing model enables direct exchanges between sellers and customers
  • Vietnam: Guidance on customs procedures and tax declarations

Read TaxNewsFlash-Asia Pacific

Europe

  • Croatia and United States sign protocol to 2022 income tax treaty
  • EU: Commission refers Hungary to CJEU over retail tax regime
  • France: New tax on capital reductions from cancellation of shares upheld (Constitutional Council decision)
  • Germany: Application of reduced VAT rate to short-term accommodations, but not ancillary services, allowed (CJEU judgment); other VAT developments
  • Germany: Legislation to expand MLI to 62 additional treaties passed by lower house of Parliament; other tax developments
  • Serbia: Rulebook on arm’s length interest rates for 2026
  • Serbia: Rulebook on e-invoicing amended
  • UK: Increased and extended electricity generator levy
  • UK: Updated intangible assets manual to reflect Finance Act 2026 changes
  • UK: Windfarm pre-construction expenses did not qualify for capital allowance; anti-avoidance provision of Ireland treaty inapplicable; ring-fence taxation for services related to oil extraction (court decisions)

Read TaxNewsFlash-Europe

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