On July 4, 2025, U.S. President Donald Trump signed into law new tax legislation1 that permanently extends or modifies key individual tax provisions of the 2017 Tax Cuts and Jobs Act that were set to expire at the end of this year. (For prior coverage, see GMS Flash Alert 2025-124, July 7, 2025.)
KPMG LLP has updated our reports with analysis and observations on the new law – available on our dedicated website.
The new law contains a number of individual and business tax provisions that may impact global mobility programs. With its passage, global mobility program managers can assess and model the impact of these changes on program costs.
The following provisions and their effective dates will be of interest to global mobility program managers.
See the KPMG Global Mobility Services report for a complete breakdown of the above provisions and considerations for global mobility programs. Please note that the report does not address all tax provisions affecting individuals, such as the new deductions for tips and overtime pay. Analysis of these provisions can be found in the KPMG Compensation and Benefits report.
Several proposals were considered during the legislative process but were not included in the final bill signed by President Trump. These proposals include a retaliatory tax on certain U.S. nonresident individuals and non-U.S. corporations (proposed section 899) which was removed following the announcement of an agreement with the other G7 countries2, increasing the standard deduction for tax years 2026 through 2028, and an election for citizens abroad to be taxed as nonresidents.
1 For full text of the bill signed by President see “One Big Beautiful Bill” legislation, H.R. 1 . For additional coverage, see "Senate passes ‘One Big Beautiful Bill’ legislation; House to take up legislation this week" in TaxNewsFlash (July 1, 2025), a publication of KPMG LLP (U.S.). Also see GMS Flash Alert 2025-124, (July 7, 2025).
2 See "Agreement with G7 countries to exclude U.S. companies from Pillar Two taxes in exchange for removing proposed new section 899 from OBBB" in TaxNewsFlash (June 26, 2025), a publication of KPMG LLP (U.S.).
The above information is not intended to be “written advice concerning one or more federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230 as the content of this document is issued for general informational purposes only.
The information contained in this newsletter was submitted by the KPMG International member firm in the United States.
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