Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Finland: Tax Board clarifies VAT treatment of e-commerce payment services
Finland's Tax Board has issued a clarification on the VAT treatment of payment services related to e-commerce transactions. The ruling addresses how VAT applies to various payment processing services in the context of online retail, providing guidance for businesses and payment service providers operating in the Finnish market. The clarification helps resolve uncertainty around whether certain e-commerce payment services qualify for VAT exemption or are subject to standard VAT rates, with implications for fintech companies, online retailers, and payment processors operating under Finnish VAT law.
South Africa VAT on Electronic Services 2026: New Registration Threshold for Non-Resident Providers
South Africa is updating its VAT rules for non-resident providers of electronic services, effective 2026, introducing a new registration threshold. Foreign suppliers of digital services to South African consumers will need to assess whether they meet the revised threshold requirements to determine their VAT registration obligations. The changes reflect South Africa's ongoing efforts to ensure non-resident digital service providers contribute to the tax base on par with domestic suppliers. Affected businesses should review their South African customer base and revenue streams to prepare for compliance with the updated registration rules ahead of the 2026 implementation date.
End of Romania’s grace period and B2C transactions legal clarification
Romania's e-invoicing grace period has come to an end, with legal clarification now provided regarding B2C (business-to-consumer) transactions. The update addresses the regulatory framework governing e-invoicing obligations for both B2B and B2C transactions in Romania, clarifying compliance requirements and timelines for businesses operating in the country. With the grace period expired, companies must now fully comply with Romania's mandatory e-invoicing system (RO e-Factura), ensuring all transactions are reported and processed through the national electronic invoicing platform as required by Romanian tax authorities.
SRB achieves record Rs370.06b revenue in FY2025-26 with 20.17pc growth
The Sindh Revenue Board (SRB) achieved a record revenue collection of Rs370.06 billion in FY2025-26, representing a 20.17% growth over the previous fiscal year. This milestone reflects strong performance in provincial tax administration in Pakistan's Sindh province. The SRB oversees sales tax on services, and this record collection signals improved compliance, broadened tax base, and enhanced enforcement measures. The result underscores Pakistan's ongoing efforts to boost subnational revenue mobilization amid fiscal pressures, with the SRB emerging as a key contributor to provincial finances.
Building a tariff-resilient compliance program: AI, technology, and a practical 90-day roadmap for global manufacturers
This article outlines how global manufacturers can build tariff-resilient compliance programs amid trade volatility, combining AI and technology with a practical 90-day implementation roadmap. It covers leveraging AI tools for tariff classification, duty drawback identification, and supply chain scenario modelling. The roadmap guides manufacturers through assessing current customs exposure, implementing technology solutions, and establishing ongoing compliance processes. Key themes include harmonized tariff schedule classification accuracy, rules of origin analysis, and using tax technology platforms to automate customs data management and reduce compliance risk in an increasingly complex global trade environment.
Pyxus International’s Adoption of Orbitax Global Minimum Tax supported by Global Tax Management
Pyxus International has adopted Orbitax's Global Minimum Tax solution, supported by Global Tax Management, to manage Pillar Two compliance obligations. The case study highlights how the multinational tobacco and agricultural company implemented the software to handle the complexities of the OECD's 15% global minimum tax rules. The Orbitax platform assists with GloBE income calculations, top-up tax determinations, and jurisdictional reporting requirements. The partnership with Global Tax Management provided implementation expertise, enabling Pyxus to streamline its Pillar Two compliance processes and ensure accurate reporting across its international operations.
What if Andy Burnham lowered the mansion tax threshold to £1.5m?
An analysis exploring the potential revenue and distributional impacts of lowering Andy Burnham's proposed mansion tax threshold from £2 million to £1.5 million. The piece examines how a reduced threshold would broaden the tax base, capturing more high-value properties in Greater Manchester and potentially across England. It considers the number of additional properties that would fall within scope, estimated revenue implications, and political feasibility. The analysis likely draws on property price data and compares outcomes at different threshold levels, contributing to the broader debate on wealth taxation and property levies in the UK.
Employees working abroad
UK government guidance on tax and payroll obligations for employers with staff working abroad. Covers PAYE responsibilities, National Insurance contributions, and the implications of employees being based overseas. Addresses when UK payroll tax rules apply, potential double taxation issues, and employer compliance requirements when workers relocate internationally. Relevant for UK businesses managing cross-border workforces and needing to understand their obligations regarding income tax withholding and social security contributions for expatriate or remote employees working outside the United Kingdom.
Guidance: CWG2: further guide to PAYE and National Insurance contributions
CWG2 is HMRC's comprehensive technical guide for employers on operating PAYE and calculating National Insurance contributions in the UK. It covers complex payroll scenarios including benefits in kind, irregular payments, termination payments, directors' NI, and special employment arrangements. The guide is an authoritative reference for payroll professionals, HR teams, and software developers ensuring accurate tax and NI deductions. Regular updates reflect legislative changes, making it essential for ongoing payroll compliance. It directly addresses both income tax withholding under PAYE and employer/employee National Insurance contribution obligations.
Guidance: Reciprocal agreements
This UK government guidance provides an overview of the UK's reciprocal social security agreements with various countries. These agreements determine which country's social security system applies to workers moving between the UK and treaty partner nations, preventing dual contributions and protecting benefit entitlements. The guidance is relevant to employers and employees engaged in international assignments, as it directly affects National Insurance and payroll tax obligations. It serves as a reference point for understanding how bilateral agreements interact with UK domestic social security and payroll compliance rules.
Apply for a certificate of coverage to pay UK National Insurance whilst working in a country with a social security agreement (CA9107)
This UK government guidance explains how individuals working abroad in countries that have a social security agreement with the UK can apply for a certificate of coverage (CA9107). The certificate confirms the worker continues paying UK National Insurance contributions rather than the host country's social security contributions, avoiding double contributions. This is directly relevant to payroll tax and social security obligations for internationally mobile employees and their employers, covering the procedural steps to obtain the certificate and maintain UK NI compliance while working overseas.
Guidance: Social Security abroad: NI38
UK government publication NI38 providing guidance on social security and National Insurance obligations for individuals working or living abroad. Covers which country's social security system applies when working overseas, the impact of bilateral social security agreements and EU rules, and how to maintain National Insurance contribution records while abroad. Relevant for UK employees, self-employed individuals, and employers navigating cross-border social security compliance, including certificate of coverage applications and the interaction between UK NI contributions and foreign pension entitlements.
Guidance: Social security agreement between the UK and India
This UK government publication details the social security agreement between the United Kingdom and India, which coordinates National Insurance and social security contribution obligations for workers moving between the two countries. The agreement prevents double social security contributions and sets out which country's system applies based on the nature and location of employment. It is highly relevant to employers and internationally mobile employees operating between the UK and India, with direct implications for payroll tax and social security compliance in cross-border employment situations.
42 States Don’t Tax Social Security. Here Are the 8 That Do
A breakdown of U.S. state-level taxation of Social Security benefits reveals that 42 states exempt such income from state personal income tax, while 8 states continue to tax it. The article is relevant for retirees and CPAs advising clients on retirement income planning, highlighting geographic tax differences that can significantly affect after-tax retirement income. The states that tax Social Security benefits vary in their approaches, with some offering partial exemptions based on income thresholds, making state residency a meaningful factor in personal income tax planning for retirees.
What today’s tariff authorities actually demand: The data, visibility, and compliance gaps most manufacturers haven’t closed
This article examines the compliance demands that tariff authorities place on manufacturers, focusing on data visibility gaps that many companies have yet to address. It highlights the need for accurate classification, valuation, and origin documentation as customs authorities increase scrutiny. Manufacturers face pressure to maintain real-time supply chain visibility, harmonized tariff schedule accuracy, and audit-ready records. The piece identifies systemic weaknesses in ERP and trade management systems that leave companies exposed to penalties and delays. It serves as a practical guide for global manufacturers seeking to close compliance gaps amid an increasingly aggressive customs enforcement environment.
The Structured Installment Sale: What CPAs Should Be Telling Business and Real Estate Clients Before They Close
This article advises CPAs on structured installment sales as a tax-efficient strategy for business and real estate clients prior to closing a transaction. Unlike traditional installment sales, structured installment sales involve assigning future payment rights to a third-party assignee, potentially deferring capital gains tax obligations over an extended period. The piece outlines key benefits including tax deferral, income smoothing, and estate planning advantages. CPAs are encouraged to introduce this option early in deal negotiations to maximize client outcomes, particularly for high-value transactions where immediate capital gains recognition could result in significant tax liability.
After IEEPA: Which tariff authorities does the U.S. government still have — and what global manufacturers need to know
This article analyzes the U.S. tariff legal landscape following challenges to IEEPA-based tariff authorities, outlining which statutory powers the U.S. government retains to impose duties. It covers alternative authorities including Section 232, Section 301, and the Trade Act provisions still available to policymakers. Global manufacturers are advised to reassess supply chain strategies given the remaining legal tools for tariff imposition. The piece provides a framework for understanding the durability of existing tariffs and the risk of new measures, helping businesses anticipate trade policy shifts and maintain compliance under a complex and evolving U.S. trade authority structure.
Grocers' Microcaptive Not Valid For Tax Benefit, 7th Circ. Told
The Seventh Circuit has been urged to rule that a grocery company's microcaptive insurance arrangement does not qualify for tax benefits. Microcaptive transactions, where a business insures itself through a captive insurance company making an 831(b) election to be taxed only on investment income, have faced intense IRS scrutiny. The government argues the arrangement lacks economic substance and fails to meet the requirements for valid insurance. This case reflects the ongoing wave of tax controversy litigation surrounding abusive microcaptive shelters, which the IRS has listed as listed transactions requiring disclosure.
Form: Tell HMRC that Inheritance Tax is due on the 10 year anniversary of a trust — IHT100d
HMRC form IHT100d used to report Inheritance Tax due on the ten-year anniversary charge of a non-interest-in-possession trust (also known as a discretionary or relevant property trust). Under UK Inheritance Tax rules, such trusts are subject to a periodic charge of up to 6% on the value of trust assets every decade. This form enables trustees to calculate and declare the charge to HMRC, ensuring compliance with the relevant property regime under the Inheritance Tax Act 1984.
Connecticut discusses conformity to federal research, experimental expenditures
Connecticut is considering conformity to federal tax treatment of research and experimental (R&E) expenditures. Under the Tax Cuts and Jobs Act, federal rules changed to require capitalization and amortization of R&E costs rather than immediate expensing, effective from 2022. Connecticut's deliberations center on whether the state will adopt these federal changes, which significantly affect businesses claiming R&E deductions at the state level. Conformity decisions impact how companies calculate their Connecticut taxable income, with potential implications for tax liabilities of businesses engaged in research activities operating within the state.
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