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KPMG Week in Tax: August 31 – September 4, 2026

Recent tax developments from around the globe for the week of August 31 – September 4, 2026

september 7, 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 issued proposed regulations that would deny section 501(c)(3) tax-exempt status to private schools that discriminate based on race, color, or national or ethnic origin in admissions, educational policies, financial assistance, athletics, or other school programs. The proposal would apply to future tax years beginning after May 31, 2027, if finalized, with comments due November 3, 2026. Read TaxNewsFlash
  • United States: The IRS issued Rev. Proc. 2026-32 to update automatic accounting method change procedures to reflect changes made by the “One Big Beautiful Bill Act,” including revised rules for domestic and foreign research and experimental (R&E) expenditures and residential construction contracts. The guidance expands access to certain automatic method changes, updates transition rules, and generally applies to Forms 3115 filed after September 4, 2026. Read TaxNewsFlash
  • Italy: Legislative Decree No. 148/2026 extends the deadlines for recovering input VAT and registering purchase invoices and customs bills, allowing taxpayers to claim VAT deductions and record invoices through the VAT return filing deadline for the second year following the year the right arises or the invoice is received. Read TaxNewsFlash
  • Malaysia: The tax authority (HASiL) increased the mandatory e-invoicing threshold from RM1 million to RM3 million in annual revenue or sales, effective September 1, 2026, exempting more than 1.1 million micro, small, and medium enterprises (MSMEs) from the requirement. Read TaxNewsFlash

United States

  • Proposed regulations: Racial nondiscrimination requirements for private schools under section 501(c)(3)
  • Rev. Proc. 2026-32: Automatic accounting method change procedures for R&E expenditures and residential construction contracts
  • Final regulations: Deduction for qualified passenger vehicle loan interest enacted under OBBBA
  • Federal Circuit: Foreign tax credits under Canadian and French tax treaties cannot offset net investment income tax
  • Inflation adjustment factor and applicable amounts for clean electricity production credit under section 45Y
  • IRS announces tax relief for taxpayers affected by wildfires in Washington State
  • IRS provides tax relief for taxpayers affected by severe storms in Indiana
  • KPMG article: Tax implications of proposed Social Security reforms

Read TaxNewsFlash-United States

FATCA / CRS / CARF

  • Australia: CRS XML schema version 3.0 testing ahead of 2027 production release 
  • Italy: FAQs on cryptoasset reporting framework (CARF) 
  • Luxembourg: Draft bills expanding platform reporting obligations and ViDA measures 
  • Panama: CRS guidance on nil reporting and undocumented accounts 
  • South Africa: CRS trade testing program

Read TaxNewsFlash-FATCA / CRS / CARF

Trade & Customs

  • U.S. CBP seeks comments on heightened import disclosure and supply chain visibility requirements
  • USTR issues conforming amendments to Chinese product exclusions under Section 301

Read TradeNewsFlash-Trade & Customs

Africa

  • Africa: Overview of recent tax developments (July/August 2026)
  • Egypt: New tax laws introduce VAT, income tax, dispute resolution, and stamp tax changes
  • Gambia: Implementation of e-invoicing system for VAT and other taxes
  • Ghana: Energy sector levies amended for fuel oil imports
  • Hong Kong and Nigeria: Income tax treaty signed

Read TaxNewsFlash-Africa

Asia Pacific

  • Australia: Draft legislation for discretionary trust minimum tax and related measures 
  • Australia: Enactment of news media bargaining incentive law targeting large digital platforms 
  • Australia: Tax Ombudsman seeks feedback on tax administration review priorities and Director Penalty Notices 
  • China: Special corporate income tax treatment rules for mergers and demergers clarified 
  • Hong Kong and Nigeria: Income tax treaty signed 
  • India: Retrospective application of amendment to fees for technical services limited (court decision); other direct and indirect tax developments 
  • Malaysia: E-invoicing threshold increased to RM3 million effective September 1, 2026 
  • Malaysia: Expanded sales tax exemption on raw materials for animal feed, fertilizers, and pesticides 
  • Philippines: Incentives for electric vehicle production 
  • Sri Lanka: Statement of tax credit schedule for quarterly income tax installments 
  • Thailand: Reduced 7% VAT rate extended through September 2027 
  • Türkiye: Omnibus law enacted introducing amendments to special consumption tax, corporate income tax, and VAT 
  • Türkiye: Reduced special consumption tax rates on gasoline and diesel

Read TaxNewsFlash-Asia Pacific

Europe

  • Croatia: Proposed tax measures to address inflation 
  • Italy: Constitutionality of extraordinary solidarity contribution upheld (court decision) 
  • Italy: FAQs on cryptoasset reporting framework (CARF) 
  • Italy: Input VAT recovery deadlines extended 
  • Italy: VAT refunds available to EU businesses registered in Italy; place-of-supply treatment of cross-border B2B services (Supreme Court decisions) 
  • Luxembourg: Draft bills expanding platform reporting obligations and ViDA measures 
  • Poland: Proposed amendments to income tax regulations; other tax developments 
  • Romania: Reduced VAT rate on specific dwellings extended to September 30, 2026 
  • Romania: Temporary reduction in diesel excise duty, windfall tax 
  • Serbia: Amendments to VAT rulebook adopted 
  • Türkiye: Omnibus law enacted introducing amendments to special consumption tax, corporate income tax, and VAT 
  • Türkiye: Reduced special consumption tax rates on gasoline and diesel

Read TaxNewsFlash-Europe

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