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KPMG Week in Tax: August 10 – 14, 2026

Recent tax developments from around the globe for the week of August 10 – 14, 2026

august 17, 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’s first review of the Foreign Subsidies Regulation concluded that the regime remains effective and reaffirmed that preferential tax measures may constitute foreign subsidies, while also considering changes to reduce compliance burdens. The EC also released updated tools and technical guidance to help multinational groups meet the EU’s public country-by-country reporting requirements. Read TaxNewsFlash
  • United States: The IRS issued interim guidance expanding and extending the section 45Q safe harbor for carbon oxide sequestration credits (read TaxNewsFlash), as well as proposed regulations under section 987 implementing the “CFC exemption election” for foreign currency gain or loss with respect to QBUs (read TaxNewsFlash). In addition, the Fifth Circuit Court of Appeals withdrew its prior opinion in Sirius Solutions and substituted a new opinion holding that a “limited partner” for purposes of the exception to self-employment income under section 1402(a)(13) means “a partner who plays no significant role in managing or running a business” (read TaxNewsFlash).
  • United States: President Trump issued a proclamation imposing new Section 232 tariffs of up to 100% on certain imported drones and drone components, citing national security, supply chain, and cybersecurity concerns. The measure also includes reduced rates for qualifying products from certain trading partners and creates an onshoring incentive program for companies investing in U.S. drone manufacturing. Read TradeNewsFlash

United States

  • Proposed regulations: Employer contributions to Trump accounts and nondiscrimination rules for dependent care assistance programs
  • Proposed regulations: Implementation of CFC exemption election for foreign currency gain or loss with respect to QBUs
  • Proposed regulations: Removal of reporting requirement for trusts whose charitable contribution deductions are solely for contributions made by passthrough entities
  • Fifth Circuit: “Limited partner” for purposes of exception to self-employment income means a partner who plays no significant role in managing or running business
  • Notice 2026-49: Guidance on rollovers between retirement plans and individual retirement accounts (IRAs)
  • Notice 2026-50: Section 45Q safe harbor for carbon oxide sequestration expanded and extended
  • Rev. Rul. 2026-16: IRS designates ICE Endex as “qualified board or exchange”
  • IRS provides tax relief for taxpayers in Northern Mariana Islands and West Virginia

Read TaxNewsFlash-United States

Transfer Pricing

  • Belgium: Clarifications on deadline for GIR notifications
  • EU: European Commission reviews Foreign Subsidies Regulation and updates public CbC reporting tool
  • India: MAP resolution not binding for years not covered, particularly when PE functions had changed (tribunal decision)
  • Monaco: Draft legislation would implement Pillar Two minimum taxation rules
  • Portugal: Form published for local top-up tax return filing
  • Qatar: Pillar Two registration service launched

Read TaxNewsFlash-Transfer Pricing

Trade & Customs

  • Canada imposes provisional safeguard tariff on certain wood cabinets and vanities
  • U.S. BIS eases export controls on certain unmanned aerial vehicles (UAVs) and related technologies
  • U.S. Trade Court: IEEPA authorizes presidential rescission of de minimis exemption
  • United States imposes Section 232 tariffs on unmanned aircraft systems (drones) and components

Read TradeNewsFlash-Trade & Customs

Africa

  • OECD: Global Forum publishes new EOIR peer review reports
  • Tanzania: Regulations clarifying excise duty regime for nonresident providers of digital services
  • Zanzibar: Nonresident digital services providers to register for VAT

Read TaxNewsFlash-Africa

Americas

  • Honduras: Changes to rules under Fiscal Responsibility Law
  • Mexico: Amendments to general rules under anti-money laundering law

Read TaxNewsFlash-Americas

Asia Pacific

  • Australia: Memorandum of understanding with Canada on treaty arbitration process under MLI
  • Bahrain: Updated VAT guidance for insurance and reinsurance
  • India: Income from offshore supplies of equipment and designs not taxable in India without fixed place PE or nexus with supervisory PE (tribunal decision)
  • India: MAP resolution not binding for years not covered, particularly when PE functions had changed (tribunal decision)
  • Malaysia: Recent tax developments concerning income tax incentives, SEZ measures, stamp duty, indirect tax, and individual taxation (August 2026)
  • New Zealand: Summary of 2026 election tax policies
  • OECD: Global Forum publishes new EOIR peer review reports
  • Oman: VAT Executive Regulations amended for e-invoicing implementation
  • Qatar: Pillar Two registration service launched
  • Saudi Arabia: Final economic substance regulations for special economic zones
  • Singapore: Guidance on economic substance for head office to qualify as an excluded entity for foreign capital gains purposes

Read TaxNewsFlash-Asia Pacific

Europe

  • Belgium: Clarifications on deadline for GIR notifications
  • Czech Republic: VAT guidance on charitable donations and subsidy projects
  • EU: CJEU referral on taxation of upstream merger gains (Germany)
  • EU: European Commission reviews Foreign Subsidies Regulation and updates public CbC reporting tool
  • France: Deadline extended for withholding tax refund claims
  • Italy: Direct online sales fall outside scope of digital services tax (court decision)
  • Italy: Serbia’s corporate income tax exemption for qualifying investment projects constitutes privileged tax regime under participation exemption rules
  • Italy: VAT split-payment mechanism extended to 2029
  • Monaco: Draft legislation would implement Pillar Two minimum taxation rules
  • Poland: Proposed changes to tax rulings regime; other tax developments
  • Poland: PSD exemption denied for indirect shareholders under look-through approach (court decision)
  • Poland: Publication of draft digital services tax bill
  • Portugal: Form published for local top-up tax return filing
  • Romania: Expenses eligible for enhanced deduction for companies listing shares on regulated market or multilateral trading facility
  • Sweden: Public consultation on DAC recast proposal

Read TaxNewsFlash-Europe

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