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KPMG Week in Tax: May 4 – 8, 2026

Recent tax developments from around the globe for the week of May 4 – 8, 2026

May 11, 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: Rev. Proc. 2026-21 establishes a program to provide targeted letter rulings on specific "significant issues" within certain corporate transactions described in section 332, 351, 355, 368, or 1036, without needing to rule on the overall transaction's qualification. Effective for requests received after May 5, 2026, the initiative responds to taxpayer feedback seeking a more efficient and timely letter ruling process. Read TaxNewsFlash
  • United States: The U.S. Court of International Trade invalidated Proclamation 11012 and its 10% import surcharge, finding the president exceeded statutory authority by relying on modern economic metrics not contemplated by Section 122 of the Trade Act of 1974. The court granted specific plaintiffs a permanent injunction and refunds of paid duties, though it declined to issue a universal injunction for all importers. Read TradeNewsFlash
  • Belgium: Effective for fiscal years starting January 1, 2025, Belgium has integrated the OECD Pillar One Amount B guidance into its local transfer pricing rules. Additionally, the Belgian tax authorities released draft technical documentation and validation rules for the global anti-base erosion (GloBE) information return, which remain subject to the transposition of DAC9 into local law. Read TaxNewsFlash
  • Brazil: Implementing regulations published on April 29, 2026, outline indirect tax reform transitioning the country to a dual VAT system that increases compliance obligations for nonresident sellers and digital platforms. Under the new framework, these entities must register for a local taxpayer number, adhere to strict e-invoicing and transaction-level reporting standards, and manage new joint tax liabilities alongside split-payment collection mechanisms. Read TaxNewsFlash

United States

  • IRS updates conservation easement site; settlement opportunity forthcoming
  • Rev. Proc. 2026-21: Establishment of significant issue ruling program for certain corporate transactions
  • Rev. Proc. 2026-22: Indexing adjustments for amounts used to calculate employer shared responsibility payments
  • Rev. Proc. 2026-23: Nationwide average purchase price, residences located in United States
  • IRS announces tax relief for taxpayers affected by Super Typhoon Sinlaku in Commonwealth of Northern Mariana Islands
  • IRS announces tax relief for taxpayers affected by wildfires in Southeast Georgia
  • KPMG article: Notice 2026-7 offers series of shortcuts in applying CAMT rules
  • KPMG article: APAs in 2025

Read TaxNewsFlash-United States

Transfer Pricing

  • Australia: Consultation on draft amendments to global and domestic minimum tax rules
  • Belgium: Incorporation of Amount B guidance; technical documentation on GloBE information return
  • Kuwait: Optional advance tax payment for taxpayers subject to DMTT
  • Montenegro: Rulebook on interest rate for financial transactions between related parties for 2026
  • South Africa: Draft rules for APA program released for public comment
  • Sweden: Legislation implementing DAC9 approved by Parliament
  • Sweden: Proposed amendments to Pillar Two rules to implement side-by-side package
  • Türkiye: Consultation on draft guidance on domestic minimum corporate income tax, investment fund exemptions, and fourth provisional tax period
  • KPMG article: APAs in 2025
  • KPMG report: New OECD releases on global minimum tax
  • KPMG report: Pillar Two and tax incentives

Read TaxNewsFlash-Transfer Pricing

FATCA / CRS / CARF

  • Australia: Recommendations on CRS reporting obligations
  • Bahamas: Advisory issued on specified CRS obligations
  • France: Updated FATCA guidance to incorporate XML schema v2.0.1
  • Hungary: Guidance on fulfillment of CRS obligations

Read TaxNewsFlash-FATCA / CRS / CARF

Trade & Customs

  • U.S. Trade Court: 10% import surcharge under Section 122 is unlawful
  • U.S. CBP guidance regarding Section 232 import duties on certain vehicles and metals
  • USTR initiates second four-year review of China Section 301 tariffs

Read TradeNewsFlash-Trade & Customs

Africa

  • Malawi: Nonresident digital services providers to register for VAT
  • Republic of the Congo: Tax and customs incentives for commercial real estate development zone
  • South Africa: Draft rules for APA program released for public comment

Read TaxNewsFlash-Africa

Americas

  • Brazil: Impact of indirect tax reform on nonresident sellers and digital platforms
  • Colombia: Call for proposals for cultural, creative, and heritage projects eligible for 165% deduction
  • Colombia: Provisional suspension of decree on withholding and self-withholding taxes

Read TaxNewsFlash-Americas

Asia Pacific

  • Australia: Consultation on draft amendments to global and domestic minimum tax rules
  • Australia: Full fringe benefit tax exemption for EVs to be phased out and replaced with permanent 25% discount from 2029 onwards
  • Australia: Tax measures in 2026-2027 budgets (Victoria and Northern Territory)
  • Australia: Western Australia budget 2026-2027 includes housing taxation measures
  • India: Conversion of compulsorily convertible debentures not subject to section 56(2)(viib) (tribunal decision)
  • India: Receipt of shares from subsidiary in exchange for additional equity investment not subject to section 56(2)(x)(c) (tribunal decision)
  • Kuwait: Optional advance tax payment for taxpayers subject to DMTT
  • Malaysia: Tax treatment of income distributions from unit holders of REITs and property trust funds
  • Philippines: Extended deadlines for income tax holiday incentive applications and other documents
  • Philippines: New law authorizes president to suspend or reduce excise tax on petroleum products
  • Singapore: New guidance on GST rules for construction industry
  • Sri Lanka: VAT invoice data integration
  • Sri Lanka: VAT on nonresident digital service providers effective July 1, 2026, other VAT amendments
  • Türkiye: Consultation on draft guidance on domestic minimum corporate income tax, investment fund exemptions, and fourth provisional tax period
  • Türkiye: Increased withholding tax rate on gains from non-TEFAS equity-intensive funds
  • Türkiye: Temporary reduction in special consumption tax rates on certain petroleum products

Read TaxNewsFlash-Asia Pacific

Europe

  • Belgium: Incorporation of Amount B guidance; technical documentation on GloBE information return
  • Bosnia and Herzegovina: Draft law to reduce excise duties on petroleum products
  • Cyprus: Reduced VAT rate on supply or construction of new dwelling
  • Estonia: 2026 excise duty increase on energy carriers cancelled; other energy-related tax developments
  • EU: Temporary State aid framework in response to Middle East crisis
  • Finland: Proposal to amend tax legislation on offshore wind power
  • KPMG report: Shipping and offshore tax update (May 2026)
  • Montenegro: Rulebook on interest rate for financial transactions between related parties for 2026
  • Norway: Proposed new law on excise duties
  • Norway: Temporary reductions in fuel taxes
  • Serbia: Amendments to Rulebook on VAT
  • Sweden: Legislation implementing DAC9 approved by Parliament
  • Sweden: Proposed amendments to Pillar Two rules to implement side-by-side package
  • Sweden: Proposed temporary reduction in energy taxes on gasoline and diesel, repeal of annual indexation of energy tax on electricity
  • Türkiye: Consultation on draft guidance on domestic minimum corporate income tax, investment fund exemptions, and fourth provisional tax period
  • Türkiye: Increased withholding tax rate on gains from non-TEFAS equity-intensive funds
  • Türkiye: Temporary reduction in special consumption tax rates on certain petroleum products

Read TaxNewsFlash-Europe

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