Skip to main content

KPMG Week in Tax: July 6 – 10, 2026

Recent tax developments from around the globe for the week of July 6 – 10, 2026

July 13, 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: The U.S. Treasury Department and IRS released final regulations identifying certain charitable remainder annuity trust (CRAT) transactions and substantially similar transactions as listed transactions, a type of reportable transaction. Read TaxNewsFlash
  • United States: The Bureau of Industry and Security (BIS) released a final rule amending the Export Administration Regulations (EAR) to provide enhanced favorable treatment for the UAE, in recognition of the UAE’s status as a U.S. Major Defense Partner and its support in advancing U.S. national security interests, including Operation Epic Fury. Read TradeNewsFlash
  • Botswana: The government of Botswana enacted amended income tax and VAT laws effective July 1, 2026, which include an increased corporate tax rate and introduction of a Pillar Two domestic minimum top-up tax (DMTT), as well as VAT on digital or remote services provided by nonresidents. Read TaxNewsFlash
  • Tanzania: Tanzania’s Finance Act 2026—effective July 1, 2026—introduces income tax and VAT changes for nonresident providers of electronic services. Read TaxNewsFlash

United States

  • Announcement 2026-11: Revised optional standard mileage rates for business, medical, and moving purposes
  • Notice 2026-42: Reference price and credit amount for section 45I credit for production of natural gas from marginal wells
  • Notice 2026-41: Inflation adjustment factors and applicable amounts for credits under sections 45U, 45V, and 45Z
  • California: Governor signs bill to expand taxation of prewritten software
  • Final regulations: Amending qualified domestic trust regulations under section 2056A to update outdated references, information, and procedures
  • IRS announces new automatic penalty relief process for taxpayers with history of filing and paying on time
  • Final regulations: Certain charitable remainder annuity trust transactions identified as listed transactions
  • Final regulations: Information reporting and transfer for valuable consideration rules for section 1035 exchanges
  • Treasury Department list of tax and other regulatory items

Read TaxNewsFlash-United States

Transfer Pricing

  • Argentina: Unified contract registry rules for commodity exports serve as primary transfer pricing control mechanism
  • Australia: Legislation to incorporate elements of Pillar Two agreed administration guidance registered
  • Bahrain: Domestic minimum top-up tax and transfer pricing guide
  • Belgium: Portal for DTT and IIR returns and notification of general representative opened on July 1, 2026
  • Botswana: Legislation including increased corporate tax rate, DMTT, and VAT on remote digital services enacted
  • Chile: Transfer pricing guidance for distributors
  • Kenya: Tax measures in Finance Act, 2026 include CbC reporting changes
  • Netherlands: Mutual agreement procedure (MAP) annual report for 2025
  • OECD: Pillar Two GIR filing extensions and transitional relief
  • Vietnam: Amendments to transfer pricing framework

Read TaxNewsFlash-Transfer Pricing

FATCA

  • Australia: Adoption of FATCA XML schema v2.0.1
  • Cayman Islands: FATCA reporting reminder and relief for missing U.S. TINs
  • Costa Rica: FATCA and CRS reporting deadlines
  • Finland: Updated FATCA and CRS technical guidance
  • India: Inclusion of information received under automatic exchange of information framework into annual information statement (AIS)
  • Isle of Man: Updated CRS 2.0 guidance
  • Italy: Implementing measures for DAC8 under CARF
  • Malta: Implementation of DAC8 under CARF
  • UAE: Deadline for FATCA and CRS reporting extended
  • Uruguay: CRS amendments enter into force

Read TaxNewsFlash-FATCA / IGA / CRS

Trade & Customs

  • Argentina: Unified contract registry rules for commodity exports serve as primary transfer pricing control mechanism
  • Pakistan: Tax and customs measures in Finance Act 2026, including new 5% withholding tax on social media revenue
  • President Trump signs proclamation ordering USTR to negotiate trade agreements regarding imports of aircraft and engine parts
  • U.S. BIS amends Export Administration Regulations (EAR) to provide enhanced favorable treatment for UAE

Read TradeNewsFlash-Trade & Customs

Africa

  • Botswana: Legislation including increased corporate tax rate, DMTT, and VAT on remote digital services enacted
  • Djibouti: Collection and compliance rules for outbound transfer tax
  • Kenya: Legislation exempting internal reorganizations from capital gains tax and expanding eligible special economic zones signed into law
  • Kenya: Tax measures in Finance Act, 2026 include CbC reporting changes
  • Mauritius: Proposed tax measures in budget 2026-2027
  • Nigeria: Presumptive tax regulations for taxpayers with unreliable income records
  • Tanzania: Income tax and VAT changes for nonresident providers of digital services

Read TaxNewsFlash-Africa

Americas

  • Argentina: Unified contract registry rules for commodity exports serve as primary transfer pricing control mechanism
  • Canada: Updates on 2026 direct and indirect tax rates and other changes for accounting purposes
  • Chile: Transfer pricing guidance for distributors
  • Honduras: Law restricting sales tax refunds and expanding sanctioning powers held unconstitutional (Constitutional Chamber of Supreme Court decision)
  • Honduras: Tax amnesty programs extended

Read TaxNewsFlash-Americas

Asia Pacific

  • Australia: Consultation on implementation of minimum tax on discretionary trusts
  • Australia: Legislation excluding tobacco and gambling from R&D tax incentive and reducing fuel excise duties receive Royal Assent
  • Australia: Legislation to amend foreign resident capital gains tax and merger control regimes introduced to Parliament
  • Australia: Legislation to incorporate elements of Pillar Two agreed administration guidance registered
  • Bahrain: Domestic minimum top-up tax and transfer pricing guide
  • India: Intermittent use of premises of an Indian agent subject to its permission does not create PE (tribunal decision)
  • Korea: Proposal to extend statute of limitations when companies delay or refuse to submit documents during audits, government review of tax incentives programs; other tax developments
  • Malaysia: New measures to support e-invoicing initiative
  • Malaysia: Service charges and late-payment interest integrally connected to credit sale transactions and thus taxable as business income (High Court decision)
  • Pakistan: Section 7E on deemed immovable property income held unconstitutional (Federal Constitutional Court)
  • Pakistan: Tax and customs measures in Finance Act 2026, including new 5% withholding tax on social media revenue
  • Pakistan: Withholding tax rates; provincial finance bills
  • Sri Lanka: Value Added Tax (Amendment) Act No. 14 of 2026 introduces VAT on nonresident digital service providers
  • Türkiye: Draft legislation proposing tax relief for commercial transport and earthquake zones
  • Türkiye: Guidance on domestic minimum corporate tax, dividend distributions and exemptions for REITs, and fourth advance tax period
  • Türkiye: Omnibus law introducing amendments to support investment and exports approved by Parliament; amendments to special tax incentive programs
  • Türkiye: Revised fixed special consumption taxes on certain petroleum products
  • Türkiye: Special consumption tax adjustments for petroleum products under fuel price stabilization mechanism
  • Vietnam: Amendments to transfer pricing framework
  • Vietnam: Updated guidance on various aspects of tax administration

Read TaxNewsFlash-Asia Pacific

Europe

  • Belgium: Portal for DTT and IIR returns and notification of general representative opened on July 1, 2026
  • Denmark: Withholding tax refund claims are subject to five-year limitation period (Supreme Court decision)
  • EU: CJEU Advocate General opinion on loss making nonresident shareholder receiving dividends subject to withholding tax
  • EU: CJEU Advocate General opinion that Luxembourg correctly transposed ATAD interest limitation rules
  • EU: EC publishes ATAD evaluation report and study examining possible reforms to taxation of financial sector
  • EU: European Parliament workshop on possible EU-wide DST
  • Finland: Protocol to income tax treaty with Switzerland signed
  • Germany: No VAT adjustment for subcontractor with respect to assigned bad debt (General Court decision); other VAT developments
  • Germany: Updated guidance on permanent establishments (PEs)
  • Hungary: Government plans to maintain current VAT return invoice-level reporting requirements
  • Italy: Implementing measures for DAC8 under CARF
  • Latvia: Income tax treaty with Liechtenstein enters into force
  • Luxembourg: Protocol to income tax treaty with Vietnam enters into force
  • Luxembourg: Registration procedures for cryptoasset service providers
  • Montenegro: Draft legislation amending corporate income tax law to align with EU ATAD rules
  • Montenegro: Income tax treaty with Liechtenstein enters into force
  • Netherlands: Debate in upper house of Parliament on new Box 3 (“wealth tax”) regime
  • Netherlands: Mutual agreement procedure (MAP) annual report for 2025
  • Poland: Draft legislation introducing windfall tax on liquid fuels; guidance on e-invoice corrections; other tax developments
  • Türkiye: Draft legislation proposing tax relief for commercial transport and earthquake zones
  • Türkiye: Guidance on domestic minimum corporate tax, dividend distributions and exemptions for REITs, and fourth advance tax period
  • Türkiye: Omnibus law introducing amendments to support investment and exports approved by Parliament; amendments to special tax incentive programs
  • Türkiye: Revised fixed special consumption taxes on certain petroleum products
  • Türkiye: Special consumption tax adjustments for petroleum products under fuel price stabilization mechanism
  • UK: Draft legislation providing capital gains tax gift holdover relief
  • UK: LLP members must be re-classified as employees for tax purposes (Supreme Court decision)
  • Ukraine: Interest paid to Cypriot company qualifies for reduced withholding tax rate (Supreme Court decision)

Read TaxNewsFlash-Europe

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.

KPMG. Make the Difference.


Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. KPMG LLP does not provide legal services.

The information contained herein is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

© 2026 KPMG LLP, a Delaware limited liability partnership, and its subsidiaries are part of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

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.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's . Privacy Statement

An error occurred.

Job seekers

Visit our careers section or search our jobs database.

Search now!

Submit RFP

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

Submit

Office locations

View locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Learn more

Press contacts

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

Contact

Headline