Compliance
Tax Compliance Trends: What’s New Globally in 2026
Recent global shifts in tax policy are reshaping compliance norms for businesses and individuals—here’s what’s changed and what you need to know to stay ahead.
By NomadicTax Research Team • 5-8 min read • August 24, 2026
## Introduction
Tax compliance isn't static; it's being reformed globally to simplify obligations, tighten transparency, and improve efficiency. Here’s a look at the most recent and impactful compliance-related policy shifts for global taxpayers.
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## Key Policy Updates
### 1. EU Tax Simplification Package
- The European Commission published a **Tax Simplification Package** in June 2026. It includes two legislative proposals—the Direct Taxation Omnibus Directive and the Recast Directive on Administrative Cooperation (DAC).([taxation-customs.ec.europa.eu](https://taxation-customs.ec.europa.eu/news/european-commission-proposes-landmark-tax-simplification-package-streamline-compliance-and-boost-2026-06-24_en?prefLang=fi&utm_source=openai))
- Key changes include abolishing withholding taxes on dividends, interest, and royalties between EU companies; simplifying cross-border tax rules; and reducing reporting obligations. Estimated compliance cost savings: **€7.9 billion per year**.([taxation-customs.ec.europa.eu](https://taxation-customs.ec.europa.eu/news/european-commission-proposes-landmark-tax-simplification-package-streamline-compliance-and-boost-2026-06-24_en?prefLang=fi&utm_source=openai))
### 2. UK Making Tax Digital (MTD) Expansion
- As of April 2026, sole traders and landlords with qualifying income over £50,000 are required to keep digital records and send **quarterly updates** under MTD for Income Tax.([gov.uk](https://www.gov.uk/government/news/436000-sole-traders-and-landlords-make-their-tax-digital?utm_source=openai))
- From **April 2027**, the income threshold will drop to £30,000, expanding the scope significantly. Penalties for missed quarterly updates are phased in and enforced via a points-based system starting in April 2027.([gov.uk](https://www.gov.uk/government/news/436000-sole-traders-and-landlords-make-their-tax-digital?utm_source=openai))
### 3. OECD’s BEPS Action 5: Harmful Tax Practices Review
- The OECD’s Forum on Harmful Tax Practices (FHTP) applied a **revised peer review methodology** in May 2026. Jurisdictions are now assessed based on impact evaluations before undergoing further review.([oecd.org](https://www.oecd.org/en/about/news/announcements/2026/07/beps-action-5-jurisdictions-make-further-progress-in-addressing-harmful-tax-practices-under-new-review-methodology.html?utm_source=openai))
- Details: 13 regimes recently assessed—7 found “not harmful”; 6 “kept under review.” Over 40% of all reviewed regimes have been abolished.([oecd.org](https://www.oecd.org/en/about/news/announcements/2026/07/beps-action-5-jurisdictions-make-further-progress-in-addressing-harmful-tax-practices-under-new-review-methodology.html?utm_source=openai))
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## What This Means for Global Taxpayers
| Who’s Affected | Key Obligations | Action Items |
|----------------|------------------|---------------------------|
| Businesses operating across EU borders | Elimination of certain withholding taxes; compliance under Omnibus and DAC reforms | Review cross-border payments of dividends, interest, royalties; adapt reporting under new DAC rules |
| UK sole traders & landlords over thresholds | Mandatory digital record-keeping; quarterly updates and future penalties | Adopt compatible software; plan for lower income threshold in 2027 |
| Countries with preferential regimes | BEPS reviews may impose changes or eliminate regimes deemed harmful | Monitor local tax legislation; assess risk and compliance costs |
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## Practical Steps to Stay Compliant
1. **Audit Existing Practices**: Identify cross-border payments, reporting lines, and tax regimes that might now fall under updated treaties.
2. **Invest in Tech & Software**: Ensure digital record-keeping systems comply with standards like MTD or DAC.
3. **Training and Internal Guidance**: Keep your tax, accounting, and legal teams informed about timelines and new thresholds.
4. **Evaluate Tax Regime Exposure**: If you benefited from preferential regimes, assess whether they’ve been reclassified or eliminated under the revised BEPS methodology.
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## Final Thoughts
Compliance isn’t a static checklist—it’s evolving with a global emphasis on digitale, transparency, and fairness. States are streamlining reporting, cutting red tape, and holding up global standards against abuse. Staying ahead means actively monitoring policy shifts and updating operations accordingly.