10 June 2025 Global Tax Policy and Controversy Watch | June 2025 edition The EY global E-invoicing Developments Tracker is your resource for the latest in e-invoicing regulations worldwide. It offers insights into legislative status and upcoming changes, helping you navigate the evolving landscape of global tax compliance. Check back weekly for updates and new jurisdictions. The United States (US) House-approved budget reconciliation bill would make small changes to the global-intangible-low-taxed-income (GILTI), foreign-derived-intangible-income (FDII) and the base-erosion-anti-abuse-tax (BEAT) rates and proposes a new IRC Section 899 that would put substantial pressure on foreign countries to repeal any "unfair" foreign taxes or exempt US-headquartered groups from those taxes. These international provisions may change, potentially significantly, as the bill advances through the legislative process. In March 2025, His Majesty's Treasury announced that taxpayers may now apply for unilateral advance pricing agreements (APAs) to gain certainty on the recognition of Cost Contribution Arrangements through the United Kingdom's APA program. Applications are now possible, including for taxpayers currently under enquiry. Effective 4 June 2025, the US has increased tariffs on aluminum and steel imports from 25% to 50% ad valorem. The new tariff rates apply to steel and aluminum articles, as well as to their derivative products. On 28 May, the US Court of International Trade ruled that tariffs under the International Emergency Economic Powers Act were unlawful. On 29 May, an federal circuit court temporarily reinstated the tariffs as the case proceeds. On 22 May 2025, the European Union (EU) Parliament approved the Carbon Border Adjustment Mechanism (CBAM) Omnibus I simplification package proposed by the European Commission. Next, the legislation needs to be negotiated and finalized with the European Council. On 15 May 2025, the European Court of Justice ruled that the transaction value method applies under simplified customs declarations for post-entry price adjustments, provided the final price is based on pre-agreed objective criteria. This ruling may affect transfer pricing and customs values for EU imports. The Dominican Tax Authority has extended by six months the deadline for the mandatory implementation of electronic invoicing for taxpayers classified as "large local and medium taxpayers," moving the deadline to 15 November 2025. This extension applies only to taxpayers who have already initiated the implementation process. On 30 April 2025, the Kenyan Cabinet Secretary presented the Finance Bill 2025 to Parliament, proposing amendments to tax laws, including the Income Tax Act and Value-Added Tax (VAT) Act, set to take effect on 1 July 2025. Key changes include repealing tax exemptions for medium-sized enterprises, introducing advance pricing agreements and expanding VAT to cover digital services from nonresident suppliers. The bill also suggests increased tax rates on certain goods and adjustments to digital asset taxation, requiring businesses to reassess their tax strategies. On 22 May 2025, the New Zealand Government delivered the 2025 Budget, with several key tax announcements, including an "Investment Boost" proposal, allowing for a 20% acceleration of tax depreciation deductions. There are several other proposals, including changes to Fringe Benefit Taxes and thin-capitalization settings. Additionally, on 20 May 2025, the New Zealand Government announced that it has decided not to progress a Digital Services Tax (DST) Bill that would have introduced a DST from 1 January 2025. In March 2025, Nigeria's Federal Inland Revenue Service consulted stakeholders on the Merchant Buyer Solution e-invoicing system, part of its digital tax transformation. The initial phase for large taxpayers starts in July 2025, with medium and small taxpayers included later. Penalties apply for noncompliance. Presidential Decree No. 9769, published on 1 May 2025, extends the 0% withholding tax rate on income from government bonds, treasury bonds and specific lease certificates until 31 July 2025, to promote investment in government securities and asset-leasing companies.
Document ID: 2025-1229 | ||||
