International Tax Asia Pacific July 2026
This e-newsletter gives you an overview of international tax developments being reported globally by KPMG member firms in the Asia Pacific Regions between 1 July and 30 July 2026.
For a full summary of global tax developments, visit kpmg.com/TaxNewsFlash.
To contact the International Tax Team email internationaltax@kpmg.com.
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Australia
Australia | |||
Proposed legislation | Income Tax | 16 July 2026 | Consultation on administrative details of critical minerals tax incentives (CMPTI). Read more |
Other | Income Tax | 13 July 2026 | KPMG recommendations on capital gains tax reforms. Read more |
Tax legislation approved and regulatory update | BEPS Pillar 2 | 13 July 2026 | Updated guidance addressing global and domestic minimum tax filing obligations. Read more |
Tax legislation approved and regulatory update | Tax compliance | 07 July 2026 | Adoption of FATCA XML schema v2.0.1. Read more |
Proposed legislation | Income tax | 06 July 2026 | Legislation to amend foreign resident capital gains tax and merger control regimes introduced to Parliament. Read more |
Tax legislation approved and regulatory update | Various tax topics | 06 July 2026 | Legislation excluding tobacco and gambling from research and development tax incentive and reducing fuel excise duties receive Royal Assent. Read more |
Tax legislation approved and regulatory update | BEPS Pillar 2 | 06 July 2026 | Legislation to incorporate elements of Pillar Two agreed administration guidance registered. Read more |
Bangladesh
Bangladesh | |||
Proposed legislation | Various tax topics | 29 July 2026 | Tax measures in National Budget FY 2026-2027. Read more |
KPMG publications | Various tax topics | 16 June 2026 | Summary of tax laws as amended by Finance Act 2026. Read more |
KPMG publications | Various tax topics | 01 July 2026 | Income tax and Value Added Tax (VAT) measures in Finance Bill 2026. Read more |
China
China | |||
Tax legislation approved and regulatory update | Indirect tax | 28 July 2026 | Repeal of tax incentives for energy-efficient vehicles. Read more |
Fiji
Fiji | |||
Proposed legislation | Various tax topics | 30 July 2026 | Tax measures in 2026–2027 budget include country-by-country (CbC) reporting requirements. Read more |
Hong Kong (SAR), China
Hong Kong (SAR), China | |||
Proposed legislation | Income tax | 29 July 2026 | Public consultation on proposal to enhance tax concession regime for corporate treasury centers (CTCs). Read more |
Treaties | Income tax | 20 July 2026 | Income tax treaty with Cyprus signed. Read more |
Tax legislation approved and regulatory update | BEPS Pillar 2 | 20 July 2026 | Guidance on GloBE information return (GIR) filing. Read more |
India
| India | |||
Administrative and case law | Various tax topics | 31 July 2026 | Consideration received by Mauritius shareholder could not be recharacterized as income from other sources subject to tax in India under Mauritius treaty (tribunal decision), other direct and indirect tax developments. Read more |
Tax legislation approved and regulatory update | Tax compliance | 31 July 2026 | Updated guidance note on FATCA and Common Reporting Standard (CRS). Read more |
Tax legislation approved and regulatory update | Transfer Pricing | 28 July 2026 | Advance Pricing Agreement (APA) annual report for 2025-2026. Read more |
Administrative and case law | Income tax | 24 July 2026 | Taxpayer’s refund claim allowed, even though made under statute allowing for foreign tax credits (High Court decision). Read more |
Administrative and case law | Income tax | 24 July 2026 | Salary costs attributable to permanent establishment (PE) not treated as head office expenditure subject to domestic deductibility restriction (tribunal decision). Read more |
Administrative and case law | Income Tax | 14 July 2026 | Capital reduction is not subject to buyback taxation (tribunal decision). Read more |
Tax legislation approved and regulatory update | Tax compliance | 10 July 2026 | Inclusion of information received under automatic exchange of information framework into annual information statement (AIS). Read more |
| Administrative and case law | Income tax | 07 July 2026 | Intermittent use of premises of an Indian agent subject to its permission does not create permanent establishment (PE) (tribunal decision). Read more |
| Administrative and case law | Income tax | 02 July 2026 | Payments for digital advertising facilitated through automated technology taxed as consideration for advertising, not fees for technical services (tribunal decision). Read more |
Indonesia
Indonesia | |||
Tax legislation approved and regulatory update | Income tax | 20 July 2026 | New rules governing placement of natural resource export proceeds. Read more |
Israel
Israel | |||
Administrative and case law | Income tax | 31 July 2026 | Financing structure used in mergers & acquisitions transaction was artificial arrangement to avoid tax on repatriation of local profits (District Court decision). Read more |
Japan
Japan | |||
Treaties | Income Tax | 29 July 2026 | Income tax treaty with Kyrgyzstan enters into force. Read more |
Tax legislation approved and regulatory update | BEPS Pillar 2 | 23 July 2026 | Guidance on global anti-base erosion (GloBE) information return (GIR) system. Read more |
Tax legislation approved and regulatory update | Indirect tax | 21 July 2026 | Guidance on consumption tax treatment of cross-border e-commerce. Read more |
Kazakhstan
Kazakhstan | |||
Tax legislation approved and regulatory update | Indirect tax | 28 July 2026 | Value Added Tax (VAT) relief expanded for medicines and healthcare products. Read more |
Malaysia
Malaysia | |||
Tax legislation approved and regulatory update | Transfer Pricing | 31 July 2026 | Guidance on transfer pricing treatment of intra-group financing arrangements. Read more |
KPMG publications | Various tax topics | 14 July 2026 | Tax developments focusing on transfer pricing, e-invoicing, and investment incentives (July 2026). Read more |
Tax legislation approved and regulatory update | Indirect tax | 07 July 2026 | New measures to support e-invoicing initiative. Read more |
Administrative and case law | Indirect tax | 06 July 2026 | Service charges and late-payment interest integrally connected to credit sale transactions and thus taxable as business income (High Court decision). Read more |
New Zealand
New Zealand | |||
Tax legislation approved and regulatory update | Indirect tax | 20 July 2026 | GST treatment of goods and services acquired before registration. Read more |
Pakistan
Pakistan | |||
KPMG publications | Various tax topics | 08 July 2026 | Withholding tax rates, provincial finance bills. Read more |
Tax legislation approved and regulatory update | Various tax topics | 07 July 2026 | Tax and customs measures in Finance Act 2026, including new 5% withholding tax on social media revenue. Read more |
Administrative and case law | Income tax | 06 July 2026 | Section 7E on deemed immovable property income held unconstitutional (Federal Constitutional Court). Read more |
Saudi Arabia
Saudi Arabia | |||
Tax legislation approved and regulatory update | Tax Compliance | 29 July 2026 | E-invoicing mandatory for taxpayers with revenue above SAR 187,500. Read more |
Singapore
Singapore | |||
Administrative and case law | Income tax | 30 July 2026 | Guidance on economic substance to qualify as an excluded entity for foreign capital gains purposes. Read more |
Tax legislation approved and regulatory update | Tax compliance | 24 July 2026 | Updated XML schema user guide for Common Reporting Standard (CRS) return. Read more |
Treaties | Income tax | 20 July 2026 | Income tax treaty with Tanzania signed. Read more |
Tax legislation approved and regulatory update | Tax compliance | 20 July 2026 | Guidance on grants to encourage GST InvoiceNow adoption. Read more |
Tax legislation approved and regulatory update | Transfer Pricing | 20 July 2026 | Guidance on deductibility of payments for related-party services. Read more |
South Korea
South Korea | |||
Proposed legislation | Tax Compliance | 08 July 2026 | Proposal to extend statute of limitations when companies delay or refuse to submit documents during audits, government review of tax incentives programs, other tax developments. Read more |
Sri Lanka
Sri Lanka | |||
Tax legislation approved and regulatory update | Indirect tax | 17 July 2026 | Amendments to Value Added Tax (VAT) Act. Read more |
Tax legislation approved and regulatory update | Indirect tax | 06 July 2026 | Value Added Tax (Amendment) Act No. 14 of 2026 introduces value added tax (VAT) on nonresident digital service providers. Read more |
Thailand
Thailand | |||
Tax legislation approved and regulatory update | Trade & Customs | 31 July 2026 | Licensing for export and re-export of dual-use items (DUIs). Read more |
Turkiye
Turkiye | |||
Tax legislation approved and regulatory update | Indirect tax | 29 July 2026 | Guidance on implementation of Value Added Tax (VAT) exemptions introduced by Law No. 7577. Read more |
Tax legislation approved and regulatory update | Various tax topics | 29 July 2026 | Expansion of electronic tax notification system and extension of temporary earthquake zone Value Added Tax (VAT) relief, updated guidance on accommodation tax implementation. Read more |
Tax legislation approved and regulatory update | Various tax topics | 14 July 2026 | Introduction of tax debt deferral, income tax exemption, and reduced corporate tax rate measures. Read more |
Tax legislation approved and regulatory update | BEPS Pillar 2 | 14 July 2026 | Pillar Two filing opened for global minimum top-up tax. Read more |
Tax legislation approved and regulatory update | Indirect tax | 06 July 2026 | Special consumption tax (SCT) adjustments for petroleum products under fuel price stabilization mechanism. Read more |
Tax legislation approved and regulatory update | Various tax topics | 06 July 2026 | Omnibus law introducing amendments to support investment and exports approved by Parliament, amendments to special tax incentive programs. Read more |
| Tax legislation approved and regulatory update | Income tax | 06 July 2026 | Guidance on domestic minimum corporate tax, dividend distributions and exemptions for REITs, and fourth advance tax period. Read more |
| Tax legislation approved and regulatory update | Indirect tax | 06 July 2026 | Revised fixed special consumption taxes on certain petroleum products. Read more |
Proposed legislation | Indirect tax | 06 July 2026 | Draft legislation proposing tax relief for commercial transport and earthquake zones. Read more |
United Arab Emirates
United Arab Emirates | |||
Tax legislation approved and regulatory update | BEPS Pillar 2 | 30 July 2026 | Guidance on application of Pillar Two side-by-side package. Read more |
| Tax legislation approved and regulatory update | Tax compliance | 23 July 2026 | Updated e-invoicing guidelines. Read more |
| Tax legislation approved and regulatory update | Tax compliance | 22 July 2026 | Phased implementation of e-invoicing beginning January 1, 2027. Read more |
| Tax legislation approved and regulatory update | Indirect tax | 21 July 2026 | Adjustments following registrant's exit from Value Added Tax (VAT) Group. Read more |
Vietnam
Vietnam | |||
Tax legislation approved and regulatory update | Indirect tax | 16 July 2026 | Guidance on electronic invoices (e-invoices), documents (e-documents). Read more |
Tax legislation approved and regulatory update | Transfer Pricing | 15 July 2026 | New guidance on tax treaties, mutual agreement procedures (MAPs), and advance pricing arrangements (APAs). Read more |
| Tax legislation approved and regulatory update | Various tax topics | 08 July 2026 | Updated guidance on various aspects of tax administration. Read more |
| Tax legislation approved and regulatory update | Transfer Pricing | 07 July 2026 | Amendments to transfer pricing framework. Read more |
