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KPMG Week in Tax: June 29 – July 3, 2026

Recent tax developments from around the globe for the week of June 29 – July 3, 2026

July 6, 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).

  • Australia: A tax reform package received Royal Assent on June 26, 2026, introducing a working Australians tax offset, restricting negative gearing to new builds, and establishing an AU$1,000 standard deduction for work-related expenses. Effective July 1, 2027, the 50% CGT discount for individuals, trusts, and partnerships will be replaced with cost base indexation alongside a new 30% minimum tax on capital gains. Read TaxNewsFlash
  • Germany: The Ministry of Finance has released a draft Annual Tax Act 2026 containing changes to withholding tax rules and exemptions, higher late-payment and refund interest rates, new audit powers, and adjustments to purchase price allocations for depreciable buildings. The bill also implements Pillar Two safe harbors, extends the CbC reporting safe harbor, introduces penalties for failing to correct CbC reports, and broadens DAC7 information exchange to third countries. Read TaxNewsFlash
  • United States: Rev. Proc. 2026-25 establishes a safe harbor under which cash contributions to Trump accounts (section 530A plans for beneficiaries under age 18) are treated as completed gifts of present interests, qualifying for the annual gift tax exclusion ($19,000 for 2026). If a taxpayer’s only taxable gifts in a year are such contributions, do not exceed the exclusion per beneficiary, do not trigger gift or GST tax, and the taxpayer has no other filing requirement, no gift tax return is required. Read TaxNewsFlash

United States

  • KPMG article: How digital refunds affect global mobility programs
  • Rev. Proc. 2026-25: Transfer tax safe harbor for certain contributions to Trump accounts
  • Treasury opens new designation cycle for qualified opportunity zones (QOZs)

Read TaxNewsFlash-United States

Legislative Updates

  • House Ways and Means approves seven tax bills aimed at providing tax relief and improving tax administration; JCT descriptions

Read TaxNewsFlash-Legislative Updates

  • House committee approves bill to add new reporting requirements for tax-exempt hospitals

Read TaxNewsFlash-Exempt Organizations

Transfer Pricing

  • Germany: Draft bill for Annual Tax Act 2026 includes proposed Pillar Two, CbC reporting changes; other tax developments
  • Greece: Guidance on submission and exchange of GloBE information returns (GIRs)
  • Luxembourg: Tax measures in EC tax simplification package most relevant to Luxembourg taxpayers
  • Luxembourg: Updated Pillar Two FAQs
  • Sweden: Proposed amendments to Pillar Two QDMTT rules

Read TaxNewsFlash-Transfer Pricing

Trade & Customs

  • Cayman Islands: Duty-free imports of fuel until September 30, 2026
  • EU: New rules protecting steel industry from global overcapacity become effective
  • Moldova: Elimination of customs duty on U.S. imports
  • Moldova: Legislation providing customs and VAT incentives for certain renewable energy projects; consultation on draft law providing customs and VAT relief for personal vehicles imported from EU member states
  • United States: President Trump declares emergency to suspend duties on Moroccan phosphate fertilizer
  • United States: BIS requests comments on Section 232 investigation of anthracite coal imports

Read TradeNewsFlash-Trade & Customs

Americas

  • Costa Rica: Proposal to require taxpayers to register telephone numbers associated with e-payment methods

Read TaxNewsFlash-Americas

Asia Pacific

  • Australia: Legislation amending capital gains tax receives Royal Assent; temporary reduction in fuel excise passes Parliament 
  • Bahrain: Tax treaty with Saudi Arabia ratified and published in official gazette 
  • Bangladesh: Income tax and VAT measures in Finance Bill 2026 
  • India: Payments for digital advertising facilitated through automated technology taxed as consideration for advertising, not fees for technical services (tribunal decision) 
  • India: Payments received by U.S. company for web hosting services not royalties subject to withholding tax under U.S. treaty (tribunal decision); other direct and indirect tax developments 
  • Japan: New income tax treaty with Philippines signed 
  • Malaysia: Service tax and sales tax policy updates 
  • New Zealand: Consultations on GST issues 
  • New Zealand: New income tax treaty with UK signed 
  • OECD: Reports on investment tax incentives in Latin America and the Caribbean, tax revenue statistics in Asia, local tax attribution under central government control 
  • Singapore: Updated guidance on changing GST accounting periods, refundable investment credit scheme; income tax treaty with Bhutan signed

Read TaxNewsFlash-Asia Pacific

Europe

  • Austria: Income tax treaty with Andorra signed; protocol to Uzbekistan treaty signed
  • Austria: Proposed VAT reduction for basic foods
  • Bosnia and Herzegovina: Amendments to the rulebook on implementation of corporate income tax law
  • Cyprus: Tax rules for individuals and businesses relocating to Cyprus
  • Denmark: Coalition agreement includes changes to individual, corporate, and indirect taxes
  • Germany: Draft bill for Annual Tax Act 2026 includes proposed Pillar Two, CbC reporting changes; other tax developments
  • Greece: Guidance on submission and exchange of GloBE information returns (GIRs)
  • Luxembourg: Tax measures in EC tax simplification package most relevant to Luxembourg taxpayers
  • Luxembourg: Updated Pillar Two FAQs
  • Moldova: Legislation providing customs and VAT incentives for certain renewable energy projects; consultation on draft law providing customs and VAT relief for personal vehicles imported from EU member states
  • Netherlands: Clarification of comparability for tax purposes of four foreign legal entities with Dutch legal entities
  • Netherlands: Temporary tax relief measures in response to energy shock
  • OECD: Reports on investment tax incentives in Latin America and the Caribbean, tax revenue statistics in Asia, local tax attribution under central government control
  • Poland: Proposed legislation removing MDR obligations for domestic tax arrangements; guidance on correcting invoices and input VAT adjustments; other tax developments
  • Romania: Updated mining activity fees
  • Slovenia: Proposed legislation includes tax cuts, contribution cap, VAT changes
  • Sweden: Amending protocol to Ireland income tax treaty signed
  • Sweden: Parliament approves legislation to exempt dividends paid to foreign governments from withholding tax, strengthen tools to fight VAT fraud
  • Sweden: Proposal to extend temporary reductions in fuel taxes
  • Sweden: Proposed amendments to Pillar Two QDMTT rules
  • UK: New income tax treaty with New Zealand signed

Read TaxNewsFlash-Europe

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