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KPMG Week in Tax: August 24 – 28, 2026

Recent tax developments from around the globe for the week of August 24 – 28, 2026

august 31, 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).

  • Canada: New Canadian counter-tariffs ranging from 15% to 50% will apply to CA$27.6 billion of U.S. imports beginning September 8, 2026, in response to recently imposed U.S. tariffs on Canadian products. The measures affect a broad range of sectors, including steel, aluminum, dairy, appliances, agricultural equipment, electronics, furniture, and apparel. Read TradeNewsFlash
  • Chile: The Chilean tax authority reported that 125 transfer pricing audits completed in 2025 generated nearly USD 103 million in additional tax collections, highlighting the use of advanced data analytics and risk assessment methodologies in taxpayer selection. The authority also published aggregated statistics on related-party transactions and country-by-country (CbC) reporting for the first time as part of its tax risk management and transparency strategy. Read TaxNewsFlash
  • United States: Proposed regulations implementing OBBBA changes to the controlled foreign corporation (CFC) inclusion rules under sections 951 and 951A include new rules for determining a U.S. shareholder’s pro rata share of subpart F income, tested income, and tested loss. The proposed regulations generally adopt a daily proration approach for ownership changes, provide guidance on CFC tax-year closings and transition rules, and are proposed to apply to tax years beginning after December 31, 2025. Read TaxNewsFlash
  • United States: The U.S. Court of Federal Claims held that a Canadian charity was not entitled to a refund of U.S. withholding tax on dividend income earned through a Canadian unit trust, finding that the U.S.-Canada income tax treaty limits reciprocal tax treatment for tax-exempt charities to certain specified pooled investment vehicles that do not include unit trusts. Read TaxNewsFlash

United States

  • Proposed regulations: Guidance under section 951(a) on pro rata share of subpart F income, tested income, or tested loss of CFCs
  • Notices of filing of petitions for addition of three substances to Superfund list
  • U.S. FCC revises “Covered List” treatment of certain power inverters eligible for section 45X credit
  • IRS announces tax relief for taxpayers affected by wildfires, storms in Nebraska
  • KPMG report: IRS provides initial guidance on section 45S premium method and requests comments

Read TaxNewsFlash-United States

Transfer Pricing

  • Bahamas: Tax measures in 2026-2027 budget include amendments to domestic minimum top-up tax (DMTT) rules; electronic notification of real property tax bills announced
  • Chile: Report on 2025 transfer pricing audit activities
  • Germany: Law implementing DAC9 adopted by lower house of Parliament; other tax developments
  • Hungary: Guidance on new transfer pricing documentation and reporting rules

Read TaxNewsFlash-Transfer Pricing

Trade & Customs

  • Canada announces counter-tariffs on U.S. goods
  • U.S. CBP finalizes ACE electronic export manifest requirements for rail cargo
  • U.S. CBP guidance on Section 338 tariffs for certain Canadian imports
  • U.S. FCC revises “Covered List” treatment of certain power inverters eligible for section 45X credit
  • U.S. State Department extends temporary modification of USML Category XI(b)
  • U.S. State Department removes certain survivability-enhanced aircraft from U.S. Munitions List controls
  • United States declares national emergency regarding bulk-power system
  • United States temporarily expands tariff-rate quota for lean beef trimmings

Read TradeNewsFlash-Trade & Customs

Africa

  • Africa: Overview of recent tax developments (July/August 2026)
  • Burundi: Tax measures in Finance Law 2026-2027

Read TaxNewsFlash-Africa

Americas

  • Anguilla: Fuel and electricity tax relief measures extended
  • Bahamas: Tax measures in 2026-2027 budget include amendments to domestic minimum top-up tax (DMTT) rules; electronic notification of real property tax bills announced
  • Chile: Report on 2025 transfer pricing audit activities
  • Dominica: Budget proposes flat individual income tax rate, extended VAT relief
  • Grenada: Temporary electricity tax relief measures
  • Saint Kitts and Nevis: Extension of 50% reduction in gasoline excise tax and customs service charges until September 30, 2026
  • Saint Lucia: Tax amendments include extension of VAT exemption for construction materials

Read TaxNewsFlash-Americas

Asia Pacific

  • Bahrain: Updated VAT guides and enhanced registration service
  • India: U.S. limited partnership may be a company for Indian tax purposes if taxed as separate entity in United States (tribunal decision)
  • Taiwan: Guidance on CFC rules and business tax on cross-border electronic services
  • UAE: New due diligence requirements for input VAT recovery related to tax evasion

Read TaxNewsFlash-Asia Pacific

Europe

  • Austria: Parcel levy on distance sales effective October 1, 2026
  • Austria: Protocol to Swiss treaty signed
  • Finland: Tax measures in draft budget for 2027
  • France: Entry into force of recodified VAT legislation postponed
  • Germany: Law implementing DAC9 adopted by lower house of Parliament; other tax developments
  • Greece: VAT treatment of branch and head office (Supreme Administrative Court decision)
  • Hungary: Guidance on new transfer pricing documentation and reporting rules
  • Moldova: Draft law introducing comprehensive EU-aligned excise duty framework
  • Netherlands: Clarifications regarding tax classification of Lebanese joint-stock company and Spanish venture capital fund
  • Netherlands: Interest deduction disallowed in “debt push down” structure (Amsterdam Court of Appeal decision)
  • Netherlands: Public consultation on omnibus tax bill, including changes to corporate reorganization provisions and reverse hybrid entity taxation
  • Netherlands: Updated hybrid mismatch guidance; clarifications on treatment of CFC inclusions under participation exemption and debt related to real estate under Belgian treaty
  • North Macedonia: Draft law on e-invoicing
  • Poland: Proposed tax system reform; other tax developments
  • Serbia: Amendments to e-invoicing rulebook
  • UK: Changes to VAT capital goods scheme

Read TaxNewsFlash-Europe

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