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KPMG Week in Tax: July 27 – 31, 2026

Recent tax developments from around the globe for the week of July 27 – 31, 2026

august 3, 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 opened infringement procedures against France, Germany, and Italy regarding the application of the Parent-Subsidiary Directive, stating that certain provisions may result in multiple taxation of dividends received from subsidiaries in other EU member states. The Commission also issued updates on DAC9 infringement proceedings, including the closure of cases against Romania and Sweden and reasoned opinions sent to Belgium, Bulgaria, and Cyprus. Read TaxNewsFlash
  • Italy: The Italian Revenue Agency released 22 FAQs providing guidance on the domestic Pillar Two tax return, including clarifications on penalties, voluntary compliance procedures, and the application of transitional relief. The return was due for the first time on June 30, 2026. Read TaxNewsFlash
  • OECD: France, Greece, and the Netherlands announced additional filing relief measures relating to Pillar Two reporting obligations for the 2024 fiscal year. The measures include extensions of filing deadlines, notification deadlines, or related filing procedures. Read TaxNewsFlash
  • United States: The U.S. Department of Homeland Security added 43 entities to the UFLPA Entity List, citing their involvement in labor transfer programs linked to the Xinjiang Uyghur Autonomous Region or their sourcing of materials from the region. With the additions, the list now includes 187 entities. Read TradeNewsFlash
  • United States: The U.S. Treasury Department and IRS issued proposed regulations relating to (1) the allocation of foreign taxes of foreign corporations affected by the repeal of the one-month deferral election under section 898(c)(2), and (2) the disallowance of foreign tax credits (FTCs) on certain distributions of previously taxed earnings and profits (PTEP) under section 960(d)(4). Read TaxNewsFlash

United States

  • Proposed regulations: Allocation of foreign taxes following repeal of section 898(c)(2) one-month deferral election and foreign tax credit disallowance under section 960(d)(4)
  • U.S. Tax Court: Consolidated group’s use of predecessor’s NOLs disallowed under SRLY rules

Read TaxNewsFlash-United States

Legislative Updates

  • Senate Finance Committee approves bipartisan tax administration reform package

Read TaxNewsFlash-Legislative Updates

Transfer Pricing

  • Bahrain: Domestic minimum top-up tax computation guide
  • EU: Formal EC notice requesting France, Germany, and Italy to align with PSD; EC updates on DAC9 infringement proceedings
  • Fiji: Tax measures in 2026–2027 budget include CbC reporting requirements
  • India: APA annual report for 2025-2026
  • Italy: Guidance on Pillar Two compliance
  • Luxembourg: Draft legislation introducing side-by-side package; confirmation that Cyprus has qualified Pillar Two IIR
  • Malaysia: Guidance on transfer pricing treatment of intra-group financing arrangements
  • OECD: Additional Pillar Two filing extensions
  • Poland: Updates to proposed corporate income tax amendments; transfer pricing simplification measures adopted; other tax developments
  • UAE: Guidance on application of Pillar Two side-by-side package

Read TaxNewsFlash-Transfer Pricing

FATCA / CRS / CARF

  • Antigua and Barbuda: Circular on remediation of pre-existing accounts under CRS
  • Canada: Updated CRS 2.0 guidance
  • India: Updated guidance note on FATCA and CRS
  • Romania: Form F8000 approved for reporting cryptoasset service providers

Read TaxNewsFlash-FATCA / CRS / CARF

Trade & Customs

  • Argentina: Digital certificates of origin streamline release of customs guarantees
  • Argentina: New export procedures for hydrocarbons and MERCOSUR origin declarations
  • Argentina: Updated postal shipment rules and courier regime
  • East African Community: Customs and duty changes for the 2026/2027 tax year
  • EU: 21st package of sanctions against Russia adopted
  • EU: Suspension of rebalancing measures against U.S. exports extended
  • Ghana: Mid-year budget review outlines customs, excise, and VAT measures
  • Thailand: Licensing for export and re-export of dual-use items
  • United States: BIS reduces tariff rate for certain UK pharmaceuticals and pharmaceutical ingredients
  • United States: CBP announces inflation-adjusted customs user fees for FY 2027
  • United States: DHS updates Uyghur Forced Labor Prevention Act (UFLPA) Entity List

Read TradeNewsFlash-Trade & Customs

Americas

  • Colombia: Tax reform bill 2026
  • Costa Rica: Increased excise tax rates for non-alcoholic beverages, perfumed soap
  • KPMG report: Guide to Canadian mining taxation

Read TaxNewsFlash-Americas

Asia Pacific

  • Bahrain: Domestic minimum top-up tax computation guide
  • Bangladesh: Tax measures in National Budget FY 2026-2027
  • China: Repeal of tax incentives for energy-efficient vehicles
  • Fiji: Tax measures in 2026–2027 budget include CbC reporting requirements
  • Hong Kong: Public consultation on proposal to enhance tax concession regime for corporate treasury centers
  • India: APA annual report for 2025-2026
  • India: Consideration received by Mauritius shareholder could not be recharacterized as income from other sources subject to tax in India under Mauritius treaty (tribunal decision); other direct and indirect tax developments
  • Israel: Financing structure used in M&A transaction was artificial arrangement to avoid tax on repatriation of local profits (District Court decision)
  • Japan: Income tax treaty with Kyrgyzstan enters into force
  • Kazakhstan: VAT relief expanded for medicines and healthcare products
  • Malaysia: Guidance on transfer pricing treatment of intra-group financing arrangements
  • Saudi Arabia: E-invoicing mandatory for taxpayers with revenue above SAR 187,500
  • Singapore: Guidance on economic substance to qualify as an excluded entity for foreign capital gains purposes
  • Türkiye: Expansion of electronic tax notification system and extension of temporary earthquake zone VAT relief; updated guidance on accommodation tax implementation
  • Türkiye: Guidance on implementation of VAT exemptions introduced by Law No. 7577
  • UAE: Guidance on application of Pillar Two side-by-side package

Read TaxNewsFlash-Asia Pacific

Europe

  • Andorra: Income tax treaty with Bulgaria signed
  • Austria: Budget Accompanying Act 2027-2028 passed by Parliament
  • Austria: Income tax treaty with Argentina enters into force
  • Bosnia and Herzegovina: VAT refund scheme for first-time homebuyers
  • EU: CJEU referral on compatibility with EU law of French tax on share buybacks (France)
  • EU: CJEU referral on computation of interest on refunds under EU law (Portugal)
  • EU: European Parliament resolution on feasibility of 28th tax regime; FISC public hearing on DAC recast proposal
  • EU: Formal EC notice requesting France, Germany, and Italy to align with PSD; EC updates on DAC9 infringement proceedings
  • France: Regulatory framework established for e-invoicing and digital reporting reform
  • Germany: Real-time VAT reporting to combat tax fraud
  • Italy: Company effectively managed in Italy and thus subject to Italian corporate income tax (Supreme Court decision)
  • Italy: Guidance on Pillar Two compliance
  • Italy: New time-stamping requirement for PE accounts
  • Luxembourg: Draft legislation introducing side-by-side package; confirmation that Cyprus has qualified Pillar Two IIR
  • Luxembourg: Updates to subscription tax procedures
  • Moldova: Consultation on proposed tax and customs reform package
  • Moldova: Guidance on income tax treatment of SMEs upon merger
  • Moldova: Methodology for property tax on unfinished constructions
  • Moldova: Simplified VAT registration certificate
  • Netherlands: Clarification regarding tax classification of Chilean SpA
  • Netherlands: Clarifications on corporate income tax treatment of cooperative exit payments and downward interest adjustments
  • Netherlands: New income tax treaty with Sweden signed
  • Netherlands: Plans for sugar tax on food and drinks
  • Netherlands: Remote training services treated as business profits under Chile income tax treaty
  • OECD: Additional Pillar Two filing extensions
  • Poland: Updates to proposed corporate income tax amendments; transfer pricing simplification measures adopted; other tax developments
  • Romania: Amendments to e-invoicing rules for B2C transactions
  • Romania: Protocol to income tax treaty with Malta enters into force
  • San Marino: Resident trust disregard for income tax and foreign asset reporting purposes
  • Serbia: New rulebooks for filing green tax returns
  • Slovenia: Guidance on taxation of electricity sharing
  • Sweden: Amendments to tonnage tax system approved by Parliament; proposed amendments to VAT deduction rules for mixed activities
  • Sweden: Income tax treaty with Netherlands signed; protocol to income tax treaty with Cyprus signed
  • Sweden: Proposed expansion of deductions for R&D, sponsorship expenses
  • Switzerland: Increased VAT rates from 2028 approved by Parliament
  • Türkiye: Expansion of electronic tax notification system and extension of temporary earthquake zone VAT relief; updated guidance on accommodation tax implementation
  • Türkiye: Guidance on implementation of VAT exemptions introduced by Law No. 7577
  • UK: Payments in satisfaction of related party debts treated as non-deductible distributions (Upper Tribunal decision)

Read TaxNewsFlash-Europe

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