Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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New York City’s Pied-à-Terre Tax: What Property Owners Need to Know
New York City's proposed pied-à-terre tax targets non-primary residences valued above a certain threshold, imposing an annual surcharge on luxury properties owned by non-residents. The article outlines who would be affected, including foreign nationals and out-of-state owners using NYC properties as secondary homes. Key considerations include how the tax is calculated based on property value, potential exemptions, and planning strategies for affected owners. Property owners should assess their exposure and consider structuring options before any enactment. The piece provides practical guidance for high-net-worth individuals navigating this emerging local property tax obligation.
Law360: State and Local Tax Midyear Updates & Second Half Preview
Law360 covers state and local tax midyear updates and previews the second half of the year, examining key developments in U.S. state and local taxation. The article likely reviews significant legislative, regulatory, and judicial changes across various states in areas such as sales tax, income tax, and other state-level levies, while offering analysis of trends and issues expected to dominate the remainder of the year. This provides practitioners and businesses with a comprehensive overview of the SALT landscape and emerging compliance challenges heading into the latter part of the fiscal year.
New Jersey Passes Budget with Tax Law Changes Affecting Individuals and Businesses
New Jersey has passed its state budget incorporating significant tax law changes impacting both individuals and businesses. The legislation introduces modifications to personal income tax rates or brackets, business tax provisions, and other fiscal measures affecting New Jersey taxpayers. The changes reflect the state's effort to adjust its tax framework to address revenue needs and economic priorities. Businesses and individuals operating in New Jersey should review the new provisions carefully to understand their compliance obligations and potential tax liabilities under the updated state tax law.
Choose the right software for Making Tax Digital for Income Tax
This UK government guidance helps individuals and businesses select appropriate software for Making Tax Digital (MTD) for Income Tax, HMRC's initiative requiring digital record-keeping and quarterly income and expense updates submitted via compatible software. The page directs users to HMRC-recognised software products that meet MTD for Income Tax requirements, covering sole traders and landlords. As MTD for Income Tax becomes mandatory, choosing compliant software is essential. The guidance is relevant to taxpayers, agents, and software developers navigating the digital transformation of personal income tax compliance in the UK.
Guidance: Self Assessment commercial software suppliers
HMRC publishes guidance listing approved commercial software suppliers for Self Assessment tax returns in the UK. The resource helps individuals and agents identify compatible third-party software products that meet HMRC's technical requirements for submitting Self Assessment returns digitally. This supports the UK's broader push toward digital tax administration and is relevant to taxpayers, accountants, and software developers seeking HMRC-recognised tools for personal income tax compliance. The guidance is periodically updated as new suppliers gain approval or existing ones update their offerings.
Hawaii To Expand First-Time Homebuyer Tax Break
Hawaii is moving to expand its first-time homebuyer tax break, broadening eligibility or increasing the benefit available to residents purchasing their first home. The measure is designed to improve housing affordability in one of the most expensive real estate markets in the United States. By enhancing the tax incentive, Hawaii aims to assist more residents in accessing homeownership. The expansion reflects growing legislative attention to housing costs through targeted personal income tax relief. Details of the expanded program, including income thresholds and credit amounts, are being finalized as part of the state's legislative process.
HMRC email updates, videos and webinars if you’re self-employed
HMRC offers a suite of educational resources—including email updates, videos, and live webinars—targeted at self-employed individuals in the UK. These resources cover key personal tax obligations such as Self Assessment filing, income tax, National Insurance contributions, allowable expenses, and Making Tax Digital requirements. The guidance helps self-employed taxpayers stay informed about deadlines, compliance obligations, and available reliefs, supporting HMRC's digital engagement strategy for the growing self-employed population.
Sign up for Making Tax Digital for Income Tax
HMRC provides step-by-step guidance for taxpayers wishing to sign up for Making Tax Digital for Income Tax (MTD for IT), the UK's mandatory digital reporting regime for self-employed individuals and landlords above certain income thresholds. The guidance covers eligibility criteria, compatible software requirements, and the sign-up process. MTD for IT requires quarterly digital submissions of income and expense data, replacing the traditional annual Self Assessment return. Rollout is phased, with initial mandation beginning April 2026 for those earning over £50,000.
Sign up your client for Making Tax Digital for Income Tax
HMRC guidance on how tax agents can sign up clients for Making Tax Digital (MTD) for Income Tax, part of the UK's digital tax reporting initiative. MTD for Income Tax requires self-employed individuals and landlords to keep digital records and submit quarterly updates to HMRC instead of an annual Self Assessment return. The guidance covers eligibility criteria, the sign-up process for agents acting on behalf of clients, compatible software requirements, and key deadlines. This represents a significant shift in how personal income tax obligations are reported and managed in the United Kingdom.
Policy paper: Cryptoasset loans and liquidity pools
HMRC policy paper clarifying the tax treatment of cryptoasset loans and liquidity pools in the United Kingdom. The guidance addresses how existing tax rules apply when individuals or businesses lend cryptoassets or participate in decentralised finance (DeFi) liquidity pools, including whether disposal events are triggered, how income versus capital gains distinctions apply, and the treatment of returns received. The paper aims to provide certainty for taxpayers engaged in DeFi activities, covering implications for both Capital Gains Tax and Income Tax purposes, reflecting HMRC's evolving approach to digital asset taxation.
ITR Filing Gains Momentum as Over 1.7 Cr Returns Are Filed Ahead of July 31 Deadline
India's income tax return filing season is gaining momentum with over 1.7 crore (17 million) returns submitted ahead of the July 31 deadline for the assessment year. The surge reflects growing taxpayer compliance and the increasing adoption of the online ITR filing portal. Tax authorities and software providers are encouraging early filing to avoid last-minute congestion and penalties. The trend indicates improved awareness among individual taxpayers about filing obligations, with the government and tax professionals actively promoting timely submission to ensure smoother processing and faster refund issuance.
More on NYC’s Pied-à-Terre Tax
The article discusses New York City's proposed pied-à-terre tax, which would impose a levy on non-primary residences owned by non-residents in NYC. This tax targets luxury second homes and investment properties held by wealthy individuals who do not use them as their primary residence. The pied-à-terre tax has been a recurring legislative proposal aimed at generating revenue from high-value properties while addressing housing affordability concerns. The piece likely examines the latest developments, legal or legislative updates, and the tax's potential fiscal and policy implications for the city.
Assessment in the Name of a Deceased Person Is a Nullity: ITAT Allows Legal Ground Even If Not Raised Before CIT(A)
India's Income Tax Appellate Tribunal (ITAT) has ruled that an assessment made in the name of a deceased person is a legal nullity, and this jurisdictional ground can be raised for the first time before the ITAT even if it was not argued before the Commissioner of Income Tax (Appeals). The tribunal affirmed that such fundamental legal defects go to the root of jurisdiction and cannot be waived by procedural omission. This ruling has significant implications for tax controversy proceedings in India, clarifying that invalid assessments against deceased taxpayers can be challenged at appellate stages regardless of earlier procedural history.
Has the Tax Shine Gone Off Sovereign Gold Bonds?
India's Sovereign Gold Bonds (SGBs) have historically offered attractive tax benefits, including capital gains tax exemption on redemption at maturity and indexation benefits on transfers. However, recent changes including the government's reduced issuance of new SGB tranches and revised capital gains tax rules introduced in the 2024 Union Budget — which altered holding periods and rates for various asset classes — have raised questions about whether SGBs retain their tax efficiency compared to alternatives like gold ETFs or physical gold, prompting investors to reassess their gold investment strategies from a tax planning perspective.
Tanzania introduces higher income tax and new VAT rules for digital marketplaces
Tanzania has enacted significant tax changes targeting the digital economy, introducing higher income tax rates and new VAT rules for digital marketplaces. The reforms require foreign digital platform operators to register for VAT and account for tax on supplies made to Tanzanian consumers. Additionally, income tax amendments raise rates applicable to certain categories of earners. These measures reflect Tanzania's broader strategy to capture tax revenue from the growing digital sector and align with global trends of taxing digital services at the point of consumption, impacting multinational tech and marketplace companies operating in the East African market.
Puerto Rico Act 60 Investigations
Puerto Rico Act 60 (formerly Acts 20/22) offers significant tax incentives including a 4% corporate tax rate and 0% tax on certain passive income for eligible residents and businesses. This article examines IRS and DOJ investigations into individuals claiming these incentives, focusing on compliance requirements such as bona fide residency rules, presence tests, and source-of-income rules. Authorities are scrutinizing taxpayers who claim Act 60 benefits while maintaining substantial ties to the US mainland, leading to audits, criminal investigations, and enforcement actions targeting improper or fraudulent use of Puerto Rico's tax incentive regime.
Ryan: The Strengthen Social Security by Taxing Dynastic Wealth Act: Throwback or ‘Fauxback’?
This article examines the 'Strengthen Social Security by Taxing Dynastic Wealth Act,' analyzing whether the proposed legislation represents a genuine policy throwback or a superficial revival of earlier estate and wealth transfer tax concepts. The piece explores how the bill would tax dynastic wealth to fund Social Security, raising questions about its structural design, historical precedents, and political viability. The analysis likely covers the mechanics of taxing large inherited wealth, comparisons to prior tax regimes, and the policy debate around using wealth taxes to shore up social insurance programs in the United States.
Pensions and IHT in 2027
This content addresses the upcoming intersection of pensions and Inheritance Tax (IHT) in the UK, focusing on significant changes taking effect in 2027. From April 2027, unused pension funds and death benefits will be brought into the scope of IHT, representing a major shift in estate planning. The article/webinar likely explores the implications for individuals, families, and advisers, covering planning strategies to mitigate the tax burden. This is particularly relevant for high-net-worth individuals who have historically used pensions as an IHT-efficient wealth transfer vehicle.
IRS Final Rules Identify Certain CRATs as ‘Listed Transactions’
The IRS has issued final rules designating certain Charitable Remainder Annuity Trusts (CRATs) as 'listed transactions,' meaning they are classified as abusive tax shelters requiring mandatory disclosure to the IRS. Transactions identified as listed must be reported by taxpayers and material advisors, with significant penalties for non-compliance. The targeted CRAT arrangements allegedly allow taxpayers to improperly avoid capital gains taxes through trust structures. By formally listing these transactions, the IRS signals heightened scrutiny and enforcement action against promoters and participants using CRATs for tax avoidance purposes beyond their legitimate charitable planning use.
Chicago Aldermen Reject Mayor’s Move to Ask Voters if Millionaires Should Be Taxed
Chicago's aldermen have rejected Mayor Brandon Johnson's proposal to place a referendum on the ballot asking voters whether millionaires should face additional local taxation. The mayor sought public input on a potential wealth tax targeting high-income residents to address the city's fiscal challenges. The city council's refusal blocks the measure from reaching voters, at least for now. The proposal reflects broader national debates around taxing the wealthy at the local level, but aldermen's opposition signals significant political resistance to new high-income tax measures in Chicago despite ongoing budget pressures facing the city.
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