11 August 2026 Global Tax Policy and Controversy Watch | August 2026 edition Driven by the rapid digitalization of customs processes, global trade functions are seeing a fundamental shift in how authorities assess compliance. Across jurisdictions, regulators are moving away from traditional document-based reviews toward transaction-level data analytics, real-time reporting and cross-border data sharing. This transformation is reshaping the nature of customs audits and disputes, with implications that extend well beyond technical compliance. The bill has now completed virtually all substantive stages of the legislative process and appears unlikely to undergo material changes before enactment. The approved text preserves the principal structural measures contained in the original proposal, including: gradual reduction of the corporate income tax rate to 23%; return to a fully integrated tax system; repeal of the 10% tax on stock exchange capital gains; and a temporary foreign asset disclosure regime, among other measures. The French Tax Authorities have issued new guidance on the initial phase of France's e-invoicing mandate, which is expected to begin on 1 September 2026. Although invoices received through legacy channels will continue to be accepted during the transition, businesses are expected to demonstrate active efforts toward compliance and remediation efforts. Organizations should use this period to assess readiness, address implementation gaps, and prepare for evolving invoicing and reporting requirements. On 31 July 2026, the Polish Ministry of Digital Affairs published draft legislation introducing a Polish digital services tax (DST) applicable only to large taxpayers. The draft provides for a 3% tax on revenue from taxable digital services attributable to Poland, including targeted advertising, multi-sided digital interfaces enabling users to interact with one other, and transmission of data collected about users. Notably, the Polish proposal includes a broad credit mechanism applicable to Polish corporate income tax and certain local R&D and investment expenditures, which may reduce effective DST totals for some taxpayers. Turkiye has approved the Multilateral Competent Authority Agreement on the Exchange of Global anti-Base Erosion (GloBE) Information Returns, reinforcing its commitment to international cooperation under the Organisation for Economic Co-operation and Development's Pillar Two framework. The agreement establishes a mechanism for the automatic exchange of GloBE-related information among participating tax authorities, increasing transparency and compliance expectations for multinational groups. Businesses should assess the potential reporting and governance implications and monitor developments closely. Andy Burnham has taken office as United Kingdom (UK) Prime Minister with effect from 20 July 2026. A full UK Budget is expected in October 2026, while draft legislation for the next Finance Bill remains subject to consultation and possible policy changes, with comments due by 7 September 2026. The draft legislation includes significant proposed changes across business tax, stamp taxes, indirect taxes, personal and employment taxes, crypto-assets and tax administration. In Keysight Technologies, Inc. & Subsidiaries v. United States, the United States (US) Court of Federal Claims found that the US Treasury lacked statutory authority to promulgate a regulation under Internal Revenue Code Section 951A that, in effect, disallowed certain deductions for purposes of determining a multinational company's global intangible low-taxed income (GILTI).
Document ID: 2026-1718 | ||||
