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KPMG Week in Tax: August 17 – 21, 2026

Recent tax developments from around the globe for the week of August 17 – 21, 2026

august 24, 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: Treasury and the IRS released proposed regulations implementing OBBBA amendments to section 250(b)(3), clarifying that income or gain from the sale or other disposition of intangible property and certain depreciable, amortizable, or depletable property is excluded from deduction eligible income (DEI) for purposes of calculating the FDDEI deduction. The proposed rules generally follow Notice 2025-78, are proposed to apply to dispositions occurring after June 16, 2025, and are expected to be finalized by January 4, 2027, with comments due October 5, 2026. Read TaxNewsFlash
  • EU: The European Commission (EC) published a tax simplification package, which includes proposals to amend several corporate tax directives through a Tax Omnibus Directive and a proposal to recast the Directive on Administrative Cooperation (DAC). The proposals are aimed at simplifying EU tax rules, reducing compliance burdens for businesses, and strengthening the competitiveness of the internal market. Read TaxNewsFlash
  • Japan: Updated administrative guidance and Q&As for the country’s Pillar Two rules reflect 2025 and 2026 tax reform changes affecting the income inclusion rule (IIR), undertaxed profits rule (UTPR), and qualified domestic minimum top-up tax (QDMTT). The updates include guidance on the coexistence of Pillar Two with certain foreign minimum tax regimes, revised safe harbor rules, and new guidance for the UTPR and QDMTT, which generally apply for fiscal years beginning on or after April 1, 2026. Read TaxNewsFlash

United States

  • Proposed regulations: Determination of target normal cost and funding target for single-employer defined benefit plans
  • Proposed regulations: Eligible investments for Trump accounts
  • Proposed regulations: Guidance under section 250(b)(3) on exclusion from DEI of income from sales or other dispositions of certain property
  • Proposed regulations: PRWORA restrictions applicable to refunded portions of certain refundable tax credits
  • Tenth Circuit: Taxpayer’s request for rehearing en banc in Liberty Global denied
  • IRS announces September 30 deadline for QI, WP, and WT applications
  • IRS announces new Office of Conservation Easements and ends uniform settlement initiative
  • IRS updates FAQs regarding section 163(j) limitation on the deduction for business interest expense
  • KPMG report: Proposed regulations on foreign currency gain or loss with respect to a QBU of controlled foreign corporations
  • KPMG report: Proposed regulations released on employer contributions to Trump accounts
  • Maryland: Digital advertising services tax is unconstitutional (State Tax Court decision)

Read TaxNewsFlash-United States

Transfer Pricing

  • Canada: Proposed simplified transfer pricing documentation requirements for small taxpayers and partnerships
  • Mauritius: Finance Act 2026 introduces changes to income tax and VAT, including amendments to Pillar Two rules and rules for suppliers of digital services
  • Japan: Administrative guidance and Q&As updated for Pillar Two rules

Read TaxNewsFlash-Transfer Pricing

FATCA / CRS / CARF

  • Barbados: FATCA and CRS reporting deadline extended
  • Germany: Updated FATCA guidance
  • Singapore: First edition of CARF e-tax guide published
  • Singapore: Updated e-tax guide under CRS 2.0
  • United States: IRS announces September 30 deadline for QI, WP, and WT applications

Read TaxNewsFlash-FATCA / CRS / CARF

Trade & Customs

  • U.S. BIS removes Turkish entity from Entity List
  • United States suspends additional duties on Canadian imports until August 22
  • U.S. CBP to void importer of record (IOR) numbers tied to inaccurate Form 5106 information
  • Ukraine: Parliament advances VAT on e-commerce; Cabinet resubmits customs companion bill

Read TradeNewsFlash-Trade & Customs

Africa

  • Mauritania: VAT compliance obligations for nonresident digital service vendors
  • Mauritius: Finance Act 2026 introduces changes to income tax and VAT, including amendments to Pillar Two rules and rules for suppliers of digital services
  • South Africa: Public consultation on e-invoicing and digital reporting

Read TaxNewsFlash-Africa

Americas

  • Canada: Proposed simplified transfer pricing documentation requirements for small taxpayers and partnerships
  • Chile: VAT on online betting and casino platforms; other tax developments
  • Dominican Republic: Tax developments include public consultation on tax reforms, construction-sector guidance, and court decisions (July 2026)
  • Venezuela: Mining law reform includes tax incentives for operators

Read TaxNewsFlash-Americas

Asia Pacific

  • Australia: Bill amending foreign resident capital gain tax, merger control regimes passes lower house of Parliament with amendment
  • Australia: Loss carry back tax offset, small business instant asset write-off bill passes Parliament with negative gearing amendment
  • Hong Kong: Income from shareholder loans treated as interest rather than return on equity investment (Court of First Instance decision)
  • India: Principal-to-principal distribution arrangement did not create PE (tribunal decision)
  • India: Stock buy-back by foreign company not taxable in India (tribunal decision)
  • Japan: Administrative guidance and Q&As updated for Pillar Two rules
  • Maldives: Proposed GST reform would extend tax to offshore tour operators and booking platforms
  • Sri Lanka: Postponement of revised VAT invoice format
  • Türkiye and Hong Kong: Income tax treaty enters into force

Read TaxNewsFlash-Asia Pacific

Europe

  • Austria: Protocol to Qatari treaty signed; new income tax treaty with Oman signed
  • EU: Guidance documents to support carbon border adjustment mechanism (CBAM) implementation
  • France: Tax updates on “Charasse Amendment,” reinvestment under share contribution deferral regime, preferential tax regimes, and interest deductibility
  • KPMG report: European Commission’s ambitious tax simplification package
  • Liechtenstein: Income tax treaty with Estonia enters into force
  • Poland: Updated draft of proposed corporate income tax amendments; other tax developments
  • Sweden: Draft legislation introducing payroll tax super deduction for R&D salary costs submitted to Council on Legislation (Lagrådet)
  • Türkiye and Hong Kong: Income tax treaty enters into force
  • Ukraine: Parliament advances VAT on e-commerce; Cabinet resubmits customs companion bill

Read TaxNewsFlash-Europe

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