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ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø Week in Tax: May 5 â€� 9, 2025

Recent tax developments from around the globe for the week ofÌýMay 5 â€� 9, 2025

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May 12, 2025

ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø Week in Tax—published weekly to provide an overview of tax developments as reported in TaxNewsFlash—includes summaries of select tax-related news followed by a full list of reports (more information can be found at the links provided).

  • United States: The House Ways and Means Committee released initial tax provisions for budget reconciliation, focusing on extending key elements of the 2017 Tax Cuts and Jobs Act, including increasing the deduction for qualified business income and the estate tax exemption base, while leaving out extensions for R&D expensing and other expiring items. An amended Chairman’s Mark with additional tax provisions, potentially including tax increases and President Trump’s campaign proposals, is expected on May 12, with a Committee markup scheduled for May 13. Read TaxNewsFlash
  • United States / United Kingdom: The White House announced a trade deal with the UK, allowing the first 100,000 UK-manufactured vehicles imported annually to the U.S. to be subject to a 10% tariff, with additional vehicles facing a 25% tariff. Additionally, negotiations will begin for the U.S.-UK Economic Prosperity Deal to enhance trade, reduce tariffs, improve market access, and strengthen economic partnerships, though it is not legally binding. Read TradeNewsFlash
  • India: The Central Board of Direct Taxes (CBDT) has expanded the transfer pricing safe harbor rules by raising the turnover threshold for eligible international transactions to INR 3 billion and extending their application to assessment years 2025-2026 and 2026-2027. Additionally, the definition of core auto components now includes lithium-ion batteries for electric or hybrid vehicles. Read TaxNewsFlash

United States

  • Ways and Means Committee releases text of TCJA extenders for budget reconciliation bill

Read TaxNewsFlash-Legislative Updates

  • ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø article: Evaluating possible U.S. retaliatory tax measures
  • New Jersey: Pilot mediation program for corporate business tax, sales and use tax dispute resolution
  • Treasury Inspector General report on IRS workforce reductions

Read TaxNewsFlash-United States

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Transfer Pricing

  • Australia: Challenge to transfer pricing of sales of alumina to third party rejected (Administrative Review Tribunal decision)
  • Germany: Updated template for group parent notification under Pillar Two law
  • India: Expanded scope of transfer pricing safe harbors
  • Moldova: Amended rules for advance pricing agreements (APAs); proposed amendments to VAT refund program for farming entities
  • Switzerland: Guidance on treatment of permanent establishments (PEs) under Pillar Two minimum tax rules

Read TaxNewsFlash-Transfer Pricing

Americas

  • Argentina: Inspection, safety, and hygiene fee cannot be collected from both taxpayer and taxpayer’s customers (court decisions)
  • Chile: Guidance on new VAT marketplace rules and low-value goods
  • Mexico: Required submission of company tax status report to housing fund
  • Peru: Definition of digital service subject to withholding tax

Read TaxNewsFlash-Americas

Asia Pacific

  • Australia: ATO guidance on eligibility of instant asset write-off
  • Australia: Challenge to transfer pricing of sales of alumina to third party rejected (Administrative Review Tribunal decision)
  • Australia: Labor Party’s 2025 tax agenda following federal election win
  • Australia: Updated guidance on supplementary annual GST return
  • India: Expanded scope of transfer pricing safe harbors
  • Pakistan: Amendments address income and excise tax collection and litigation
  • Turkey: Extended application period for VAT exemption for construction work under investment incentive certificates
  • Turkey: Further extension of 0% withholding tax on treasury bills and government bonds
  • Turkey: Guide on tax deferral and installment procedures
  • UAE: Updated guidance on qualified investment funds and nonresident nexus rules

Read TaxNewsFlash-Asia Pacific

Europe

  • Austria: Tax measures in 2025 draft budget law
  • Bulgaria: Tax measures in 2025 budget law
  • France: Updated tax residency rules for companies using domiciliation services
  • Germany: Updated template for group parent notification under Pillar Two law
  • Moldova: Amended rules for advance pricing agreements (APAs); proposed amendments to VAT refund program for farming entities
  • Poland: Draft updated guidance on cash registers
  • Poland: Joint and several liability of board member for company’s tax debts upheld (CJEU judgment)
  • Poland: Proposed income tax and VAT amendments
  • Sweden: Proposed reduction in tax subsidies for solar cells
  • Switzerland: Guidance on treatment of permanent establishments (PEs) under Pillar Two minimum tax rules
  • Ukraine: Guidance on VAT exemption for defense goods

Read TaxNewsFlash-Europe

FATCA / IGA / CRS

  • Belgium: FATCA data transfers to United States non-compliant with data protection regulation
  • Malta: Updated AEOI guidelines

Read TaxNewsFlash-FATCA / IGA / CRS

Trade & Customs

  • U.S. BIS requests public comments on aircraft import investigation
  • White House announces trade deal with UK
  • EU: Public consultation on potential countermeasures against U.S. tariffs

Read TradeNewsFlash-Trade & Customs

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