Skip to main content

KPMG Week in Tax: May 11 – 15, 2026

Recent tax developments from around the globe for the week of May 11 – 15, 2026

May 18, 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).

  • Canada: A second budget bill containing the remaining tax measures from the 2025 federal budget includes global minimum tax provisions, clean economy incentives, and the cryptoasset reporting framework. Read TaxNewsFlash
  • EU: The CJEU held that year-end transfer pricing adjustments designed to guarantee a target profit margin do not automatically constitute a taxable supply of services for VAT purposes unless a direct link to identifiable services exists. Multinational businesses may need to proactively review intercompany agreements so that transfer pricing policies and VAT positions are consistent, clearly distinguishing between price corrections and service remuneration to withstand continued tax authority scrutiny. Read TaxNewsFlash
  • United States: The IRS announced terms of a time-limited settlement opportunity for eligible partnerships involved in conservation or historic preservation easement disputes, allowing for a deduction of approximate out-of-pocket costs while imposing a 10% gross valuation misstatement penalty if accepted within 90 days. For an additional 45 days following the initial 90-day window, the settlement remains available but the penalty increases to 20%, after which cases will only be resolved based on the hazards of litigation. Read TaxNewsFlash

United States

  • Proposed regulations: Certain fertility benefits to qualify as new category of limited excepted benefits
  • IRS announces new settlement offer for certain conservation easement disputes
  • Notice 2026-34: 2026 cumulative list of changes in plan qualification requirements for defined contribution qualified pre-approved plans

Read TaxNewsFlash-United States

Transfer Pricing

  • Albania: Draft law ratifying multilateral convention implementing Pillar Two subject to tax rule
  • Australia: 2026 federal budget includes implementation of Pillar Two side-by-side package
  • Canada: Draft second budget bill containing remaining tax measures from 2025 budget, including Pillar Two changes
  • EU: VAT treatment of transfer pricing adjustments (CJEU judgment)
  • Kenya: Tax proposals in Finance Bill, 2026 include CbC changes
  • KPMG report: Transfer pricing controversy trends shaping the energy and natural resources sector in Asia Pacific
  • Malaysia: Updated global minimum tax FAQs, e-invoicing guidelines; other tax developments (May 2026)
  • Netherlands: Pillar two tax return forms published

Read TaxNewsFlash-Transfer Pricing

FATCA / CRS / CARF

  • Channel Islands: List of reportable jurisdictions under cryptoasset reporting framework (Jersey)
  • Germany: Updated FATCA guidance
  • Hong Kong: Draft legislation to strengthen administrative framework for CRS regime
  • Luxembourg: Implementation of CRS 2.0
  • Uruguay: New CRS reporting and response formats

Read TaxNewsFlash-FATCA / CRS / CARF

Trade & Customs

  • U.S. BIS announces procedures for pharmaceutical companies to apply for onshoring agreements to obtain reduced Section 232 tariff rates

Read TradeNewsFlash-Trade & Customs

Africa

  • Kenya: Tax proposals in Finance Bill, 2026 include CbC changes
  • South Africa: Taxpayers cannot rely on ignorance of downstream steps in avoidance schemes (court decision)

Read TaxNewsFlash-Africa

Americas

  • Canada: Draft second budget bill containing remaining tax measures from 2025 budget, including Pillar Two changes
  • Costa Rica: Updates to annexes and structures 4.4 of electronic tax receipts

Read TaxNewsFlash-Americas

Asia Pacific

  • Australia: 2026 federal budget includes implementation of Pillar Two side-by-side package         
  • Australia: Market value of shares for capital gains tax purposes must include control premium (Federal Court decision)     
  • KPMG report: Transfer pricing controversy trends shaping the energy and natural resources sector in Asia Pacific
  • Malaysia: Updated global minimum tax FAQs, e-invoicing guidelines; other tax developments (May 2026)
  • Pakistan: Income tax, sales tax, and customs developments

Read TaxNewsFlash-Asia Pacific

Europe

  • Albania: Draft law ratifying multilateral convention implementing Pillar Two subject to tax rule
  • Belgium: Anti-abuse provision under parent-subsidiary directive rules applicable (court decision)
  • Czech Republic: Extension of tax measures to mitigate rising fuel prices through May
  • Czech Republic: Input VAT deduction on medical equipment; delivery of invoice not required for VAT deduction; declaration of VAT on advance payments (court decisions)
  • EU: CJEU Advocate General opinion on compatibility of Belgian excess profit ruling scheme with EU State aid rules
  • EU: VAT treatment of transfer pricing adjustments (CJEU judgment)
  • France: Revised list of non-cooperative jurisdictions
  • Netherlands: Pillar two tax return forms published
  • Poland: New version of bill implementing VAT in the Digital Age (ViDA); other tax developments
  • Slovakia: VAT e-invoicing implementation begins January 1, 2027
  • Switzerland: Extension of tax loss carry-forward period

Read TaxNewsFlash-Europe

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.
All fields with an asterisk (*) are required.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline