The KPMG Week in Tax for 12-16 October 2026 provides a curated summary of significant international tax developments across OECD, EU, US, and Asia-Pacific jurisdictions. This weekly digest is essential for multinational tax heads tracking the rapid evolution of BEPS 2.0 implementation, green tax incentives, and digital economy taxation. The edition covers final OECD administrative guidance on Pillar Two GloBE safe harbours, US Treasury proposed regulations on Section 45X advanced manufacturing credits, EU Member State transposition of DAC8 (crypto-asset reporting), and new digital services tax (DST) enactments in Malaysia and Vietnam.
Key Takeaways
- Pillar Two Safe Harbour Finalization: The OECD released final administrative guidance on the Transitional CbCR Safe Harbour, clarifying the ‘qualifying CbCR’ definition and the treatment of joint ventures. MNEs must update their safe harbour testing workpapers for the current fiscal year to reflect the new qualitative criteria.
- US IRA Section 45X Guidance: Proposed regulations define ‘applicable critical mineral’ and ‘qualifying advanced energy project’ for the 10% production credit. Manufacturers of solar, wind, battery, and critical mineral components should evaluate eligibility and coordinate with transferability provisions for monetization.
- DAC8 & Crypto Reporting: EU Member States must transpose DAC8 by 1 January 2026, requiring crypto-asset service providers (CASPs) to report transactions of EU residents. Financial institutions with crypto exposure must implement enhanced due diligence and reporting pipelines to avoid penalties.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement