Policy updates

Bangladesh

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Bangladesh S.R.O No 147-Ain/2026/352-Mushak – VAT Exemption for Startup Companies

Gazette issued that grants Value Added Tax exemption for startup companies, easing cost burdens for new small-scale technologically or innovation-based businesses. Designed to lower barriers and encourage entrepreneurship under Bangladesh tax law.

Editorial impact label: High

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Jun 11, 2026

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Proposed

UK consultation on removing double taxation for certain overseas entities

HMRC has published a consultation (10 June 2026) proposing to remove double taxation from investments in certain overseas entities (including US LLCs and reverse hybrids) that currently lead to effective tax rates above approximately 75%. Seeks feedback on draft legislation, with changes expected in the UK Finance Bill 2026-27. Aims to address unfair tax burdens for UK residents investing via foreign entities.

Editorial impact label: High

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Jun 10, 2026

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Proposed

UK resident individual members of LLCs and other reverse hybrids

HMRC has opened a consultation (published 10 June 2026) proposing reforms to the taxation of UK-resident individuals who are members of reverse hybrid entities such as US LLCs. The consultation targets cases where differences in entity classification across jurisdictions lead to very high effective tax rates (up to 75%) due to double taxation – e.g. individuals taxed in the US on profits/gains as they arise, then taxed again in the UK on distributions. The proposed reforms look to reduce or eliminate those mismatches, offer fairer outcomes, and improve the UK’s competitive tax offer for globally mobile individuals. No legislative change yet; implementation would depend on responses and likely via Finance Bill 2026-27.

Editorial impact label: High

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Jun 10, 2026

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Proposed

UK consults on removing double taxation for reverse hybrids (including US LLCs)

On 10 June 2026, the UK government published a consultation (Tax Update 2026) proposing changes to address unintended mismatches in tax treatment of overseas entities like US LLCs (reverse hybrids), with high effective tax rates and cash flow disadvantages. It aims to reduce administrative burden and improve fairness for cross-border investors.

Editorial impact label: Medium

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Jun 10, 2026

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Manual for MNE Groups on Global Minimum Tax (Pillar Two) Compliance Obligations

Published 10 June 2026, provides EU-funded manuals, test files, validation‐schemes and training for multinational enterprise groups and tax administrations to ensure consistent implementation of Pillar Two and aligned DAC9 reporting. Helps IT interoperability, risk reviews, guidance for preparation of Top-up Tax Information Returns (TTIR). ([reforms-investments.ec.europa.eu](https://reforms-investments.ec.europa.eu/publications-0/manual-mne-groups-global-minimum-tax-pillar-two-compliance-obligations_en?prefLang=mt&utm_source=openai))

Editorial impact label: Medium

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Jun 10, 2026

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The Customs (Miscellaneous Amendments) Regulations 2026

Changes to UK customs rules effective from 9 June 2026 affecting port operators, import-export procedures, and interest on unpaid duties. New requirements for port facilities (including off-site), simpler declarations including use of digital carnets, bulk customs declarations for postal packets across UK, and revised interest rules for duties unpaid through non-compliance or errors.

Editorial impact label: Medium

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Jun 9, 2026

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IRS and Security Summit partners announce new framework to better protect taxpayers and tax revenue from fraud

IRS and its Security Summit partners introduced a reorganized public-private structure with five specialized work groups (Pre-Filing, Forecasting, Preventing, Detecting & Reporting, Responding) to enhance information sharing, early detection of risky behavior, and stronger defense against identity theft and fraudulent tax filings. Affects how individuals, businesses, payroll providers, software companies, and tax professionals manage security standards and respond to threats in the U.S. tax system.

Editorial impact label: High

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Jun 8, 2026

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PPh Final UMKM Tetap 0,5% melalui PP Nomor 20 Tahun 2026

Indonesia has enacted **Peraturan Pemerintah Nomor 20 Tahun 2026**, which permanently maintains the **final PPh rate of 0.5%** for individual taxpayers and one-person corporations with annual turnover up to IDR 4.8 billion, removes time limits on eligibility for these entities, retains 4-year limit for cooperatives, and mandates aggregation of turnover among family-linked entities. ([pajak.go.id](https://www.pajak.go.id/id/siaran-pers/djp-tegaskan-komitmen-dukung-umkm-naik-kelas-melalui-pp-nomor-20-tahun-2026?utm_source=openai))

Editorial impact label: High

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Jun 8, 2026

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IRS announces that 27 states have elected to participate in the Federal Scholarship Tax Credit (FSTC) program

Under Section 25F of the One, Big, Beautiful Bill (OBBBA), the Federal Scholarship Tax Credit allows eligible taxpayers to claim up to **$1,700** for contributions to Scholarship Granting Organizations in a participating state. As of **June 8, 2026**, **27 states** have formally elected to participate. Participation is voluntary at the state level. ([irs.gov](https://www.irs.gov/newsroom/more-than-half-the-us-states-signed-up-to-participate-in-the-federal-scholarship-tax-credit-program-enacted-under-the-one-big-beautiful-bill?utm_source=openai))

Editorial impact label: Medium

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Jun 8, 2026

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Notice 2026-33: Guidance on Qualified Long-Term Care Distributions under SECURE 2.0

Notice 2026-33 provides new IRS guidance on the long-term care distribution rules added by the SECURE 2.0 Act. It clarifies how defined contribution plans may permit distributions to pay for certified long-term care insurance, the reporting requirements (issuer disclosures, premium statements), safe harbors for plan administrators, and extension deadlines for plan amendments. Distribution rules are effective for distributions made after December 29, 2025. Implications include new options for retirement plan participants and administrative requirements for insurance issuers and plan administrators.

Editorial impact label: High

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Jun 8, 2026

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Targeted Support to Help Canada’s Airline Sector Weather Global Fuel Market Volatility

Government introduced the ‘Liquidity for Airline Sector Resilience’ facility via the Canada Enterprise Emergency Funding Corporation, offering up to CAD $150 million in repayable liquidity support to eligible Canadian airlines facing elevated jet fuel costs. Also, federal fuel excise tax has been temporarily removed on aviation fuel from April 20 to September 7, 2026. These measures aim to stabilize airline operations and protect affordability of travel for Canadians, under conditions such as maintaining Canadian operations, restricting executive compensation and dividends.

Editorial impact label: Medium

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Jun 8, 2026

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Indonesia Government Regulation (PP) No. 20/2026: Amendment to PP 55/2022 on Final Income Tax for UMKM

PP 20/2026 refines the final income tax regime for Indonesia’s micro-, small-and-medium enterprises (UMKM), preserving the 0.5% final tax rate for businesses with annual gross turnover up to IDR 4.8 billion and maintaining zero tax for those under IDR 500 million. Includes duration limits and safeguards on misuse (e.g. entity splitting).

Editorial impact label: High

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Jun 8, 2026

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Proposed

Notice 2026-36: Intent to issue proposed regulations for excise tax on excess tax-exempt organization executive compensation under the One, Big, Beautiful Bill

The U.S. Treasury & IRS issued Notice 2026-36 (June 5, 2026), which expands the definition of "covered employee" under IRC section 4960. Under the new law, any employee of an Applicable Tax-Exempt Organization (ATEO) with compensation over US$1 million or receiving excess parachute payments may be subject to excise tax. The notice also provides for exceptions (such as limited hours and nonexempt funds), solicits public comments (deadline August 4, 2026), and offers transition relief.

Editorial impact label: High

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Jun 5, 2026

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Canada Groceries and Essentials Benefit one-time top-up and transition from GST/HST credit

Effective 5 June 2026, eligible Canadians will receive a **one-time top-up payment** equal to 50% of the 2025-26 GST/HST credit. Starting 3 July 2026, the GST/HST Credit will be replaced by the **Canada Groceries and Essentials Benefit**, featuring higher quarterly payments (25% increase) for the next five years, while maintaining eligibility structure. This provides additional financial support and helps offset food inflation.

Editorial impact label: Medium

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Jun 5, 2026

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Proposed

Spring Economic Update 2026: making EOR eligible under CCUS tax credit and prioritising advance income tax rulings for large-scale and clean economy projects

Canada’s government proposes to allow **Enhanced Oil Recovery (EOR)** to qualify under carbon capture, utilisation and storage (CCUS) tax credits. It also commits to prioritising requests for advance income tax rulings related to large-scale nation-building and clean economy projects. These changes aim to reduce uncertainty and accelerate investment in sectors like infrastructure, clean energy, and critical minerals. Estimated revenue increase of CAD $395 million over four years. Effective starting from the date of announcement in Spring Economic Update 2026.

Editorial impact label: High

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Jun 5, 2026

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IRS describes agency’s activities in fiscal year 2025 Data Book

The IRS published its 2025 Data Book, summarizing its operations: tax return filings, enforcement activities, customer service metrics, funding, compliance, and taxpayer assistance performance. Includes breakdown of audit rates, collection activities, and digital services usage. Helps stakeholders understand IRS’s resource allocation and service performance.

Editorial impact label: Low

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Jun 5, 2026

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Treasury, IRS intent to issue proposed regulations on excessive compensation for tax-exempt orgs (Notice 2026-36)

Notice 2026-36 announces that under section 4960, the definition of covered employee is expanded: any employee earning over $1 million or receiving excess parachute payments may be a covered employee, not just the prior top-5 highest paid. It grants transition relief allowing limited hours and nonexempt funds exceptions until further guidance. Impacts tax-exempt organizations and their executive pay structuring.

Editorial impact label: Medium-High

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Jun 5, 2026

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GST/HST Credit Top-up Payment prior to implementation of Canada Groceries and Essentials Benefit

As part of the transition from the existing GST/HST credit to the new **Canada Groceries and Essentials Benefit (CGEB)**, the government issued a **one-time top-up payment** starting **June 5, 2026**, equal to ~50% of the annual GST/HST credit between July 2025-June 2026. Eligible on basis of 2024 tax returns and entitlement in January 2026. Helps low/modest income Canadians manage essential costs until CGEB starts in July 2026.

Editorial impact label: Medium

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Jun 5, 2026

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Proposed

IRS to issue proposed regulations for excise tax on excess tax-exempt organization executive compensation under the One, Big, Beautiful Bill

Notice 2026-36 announces the intent to issue proposed regulations addressing excise taxes for excess compensation and excess parachute payments to employees of tax-exempt organizations, as mandated under the One, Big, Beautiful Bill. The regulations will define thresholds, scope, and mechanisms for the excess pay and parachute payment excise tax to ensure tax-exempt entities comply with compensation limits and are held accountable.

Editorial impact label: High

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Jun 5, 2026

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Proposed

Notice 2026-36: Intent to Issue Proposed Regulations on Excise Tax for Excess Compensation in Tax-Exempt Organizations

Under OBBBA, the definition of ‘covered employee’ is expanded: excise tax on excess compensation and parachute payments may apply to any employee with compensation exceeding $1 million or receiving excess parachute payments. Notice 2026-36 clarifies exceptions (limited hours, non-exempt funds) and solicits public comments on the forthcoming proposed regulations.

Editorial impact label: Medium

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Jun 5, 2026

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