Policy updates

Sri Lanka

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Inland Revenue (Amendment) Act, No. 11 of 2026

Amends Sri Lanka’s tax law to alter residency rules for individuals holding an Investor Category Residence Visa (they will not be treated as residents for tax on foreign income except employment on ships), revises capital gains tax rates (e.g. individuals/partnerships at 15%, trusts/mutual funds at 30%), introduces 100% Enhanced Capital Allowance for investments > USD 250,000 in new business undertakings, and includes interest waiver for late/under-paid tax extending to years up to 2024/25. Effective from 3 June 2026 for certain provisions, and from 1 April 2026 for others.

Editorial impact label: High

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Jun 3, 2026

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Canada to extend steel and aluminum tariff measures to support workers and businesses

Canada will extend its steel TRQ regime for non-CUSMA partners, existing horizontal tariff relief for U.S. steel and aluminum products, and measures related to derivative tariffs for one year (to June 2027), to support domestic industry and provide business certainty. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/06/canada-to-extend-steel-and-aluminum-tariff-measures-to-support-workers-and-businesses.html?utm_source=openai))

Editorial impact label: Medium

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Jun 3, 2026

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Proposed

Consultations launched on extending Canadian Journalism Labour Tax Credit

The government proposed to extend the Canadian Journalism Labour Tax Credit to include audio and audiovisual news production. As part of Spring Economic Update 2026, Finance Canada is seeking input on the design, aiming to broaden support to broadcast and video-based journalism sectors. Public comments due by July 31, 2026. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/06/government-launches-consultations-on-extending-the-canadian-journalism-labour-tax-credit.html?utm_source=openai))

Editorial impact label: Low

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Jun 3, 2026

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Sri Lanka

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Sri Lanka – Inland Revenue Amendment Act No. 11 of 2026: Capital Gains Tax Rates and Enhanced Capital Allowances

Sri Lanka’s Act No. 11 of 2026 certified 3 June 2026, implements revised CGT rates (15% for individuals/partnerships; 30% for trusts, unit trusts, NGOs), introduces 100% Enhanced Capital Allowance for new business investments exceeding USD 250,000 from 1 April 2026, and offers interest waiver on late/under-payments up to Y/A 2024-25 if principal tax paid by 2 December 2026.

Editorial impact label: High

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Jun 3, 2026

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Sri Lanka

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Revision of rates & relief measures under Sri Lanka’s Inland Revenue Act (Circular SEC/2026/E/06 etc.)

Sri Lanka’s Inland Revenue Department (Circular SEC/2026/E/06, re-revised in August 2026) has revised rules for calculation of quarterly income tax instalments for Y/A 2026-27. Other changes include new capital gains rates (Individuals/Partnerships 15 %, others 30 %) effective 3 June 2026; enhanced capital allowance (100 % for qualifying assets exceeding USD 250,000 in new business undertakings); and interest waiver for late/under payments up to Y/A 2024-25 if principal tax is paid by 2 December 2026.

Editorial impact label: High

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Jun 3, 2026

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Sri Lanka

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Revision of Capital Gains Tax Rates; Enhanced Capital Allowances; Interest Waiver – Sri Lanka

Sri Lanka: Under Inland Revenue Notice SEC/PN/IT/2026/02, with effect from 3 June 2026 chapter on Revised Capital Gains Tax rates (individuals/partnerships taxed 15%, trusts/funds/NGOs at 30%), Enhanced Capital Allowances for depreciable assets over USD 250,000 from 1 April 2026, and waiver of interest on late or underpayments (up to AY 2024-25) if principal is paid by 2 December 2026. These measures offer relief but require timely payment and accurate categorization.

Editorial impact label: High

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Jun 3, 2026

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Proposed

Government launches consultations on extending the Canadian Journalism Labour Tax Credit

Proposed extension of the Canadian Journalism Labour Tax Credit to **audio and audiovisual news production**. The government is seeking public input by July 31, 2026 to design eligibility rules, labour caps, and effective targeting of support beyond written news media.

Editorial impact label: Medium

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Jun 3, 2026

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Administrative Policy Regarding Adjustment to the GST/HST Return (Policy Statement P-149)

Policy P-149 (June 2026) updates the administrative policy for amendments to GST/HST returns: identifies ‘specified persons’ with tighter timelines for claiming ITCs, sets format & timing rules, and generally denies requests to amend returns when they only increase deductions or ITCs without increasing tax liability—unless extenuating circumstances apply.

Editorial impact label: Medium

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Jun 1, 2026

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해외금융계좌 신고제도 및 해외신탁 신고제도 강화

For the 2025 tax year, residents and certain non-residents who on any month-end held **foreign financial accounts** with aggregate assets exceeding **₩500,000,000** must report via HomeTax or paper form by end of June 2026. Includes foreign trusts. Non-compliance leads to penalties: underreporting has fines of 10%, possible disclosure and for large amounts criminal penalties.

Editorial impact label: Medium

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Jun 1, 2026

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Ministerial Decision No. 131 of 2026 Amending Certain Provisions on Small Business Relief for Corporate Tax Purposes until 31 December 2029

This decision extends UAE’s Small Business Relief (SBR) for taxable persons with annual revenue not exceeding AED 3 million through tax periods ending on or before 31 December 2029. Simplifies corporate tax compliance requirements for eligible businesses. Provides certainty and relief for start-ups, SMEs under the threshold, reducing administrative burdens from compliance.

Editorial impact label: Medium

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Jun 1, 2026

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Bangladesh

Proposed

Bangladesh: Progressive Increase in Tax-Free Income Threshold in Budget 2026-27

In Budget Speech 2026-27 for Bangladesh, the government proposed raising the **tax-free income threshold** for individual taxpayers from BDT 350,000 to **BDT 375,000** for Assessment Years 2026-27 and 2027-28, with further gradual increases planned in following years under a five-year plan.

Editorial impact label: Low

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Jun 1, 2026

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Proposed

Treasury, IRS Issue Section 892 Proposed Regulations to Provide Grandfathering Protection and Transitional Relief to Sovereign Investors (IR-2026-69)

These proposed Treasury-IRS regulations clarify applicability dates for the Debt Acquisition Rule and Effective Control Rule under Section 892. They establish **grandfathering protection** for existing foreign government investments and a **transition period** (at least 90 days) to adopt the rules once finalized. The change aims to provide certainty to sovereign and non-US governments (including sovereign wealth funds) investing in the US passive income markets.

Editorial impact label: Medium

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May 29, 2026

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Cyprus

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Pillar 2 Global Minimum Tax Directive: New FAQ available clarifying Cyprus qualified income inclusion rule

Published 29 May 2026, the FAQ confirms Cyprus is to be treated by all EU Member States as having a qualified Income Inclusion Rule under the Pillar 2 Directive for fiscal years from 31 December 2023. This ensures Cyprus may receive top‐up tax information returns by 31 May 2026, and other Member States should not require duplicate domestic filing under DAC9 where central filing via Cyprus is opted.

Editorial impact label: Low

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May 29, 2026

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Proposed

Treasury/IRS proposed regulations under Section 892 grant grandfathering protection and transitional relief to foreign governments

On May 29, 2026, Treasury and the IRS issued additional guidance (IR-2026-69) modifying prior proposed regulations under IRC Section 892, to provide **grandfathering protection** and a **transition period** before stricter rules take effect. Foreign governments with holdings acquired before proposed applicability dates, or under binding commitments before those dates, may continue under old rules for certain income and holdings. A transition period of at least 90 days after publication (or until the first taxable year after) is provided. This change gives foreign sovereign investors clarity and time to adjust before the final rules apply.

Editorial impact label: Medium

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May 29, 2026

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Proposed

Treasury, IRS issue Section 892 proposed regulations to provide grandfathering protection and transitional relief to sovereign investors

Additional guidance issued May 29, 2026 by Treasury and IRS clarifying applicability dates of proposed regulations under IRC Section 892. The guidance introduces a grandfathering rule to protect existing sovereign investments from new commercial-activity tests, and provides a transition period (at least 90 days post-publication or until the start of the next taxable year) for foreign governments to comply once final regulations are published. These changes impact foreign governments and sovereign entities with passive U.S. investment income, tightening definitions of "commercial activity" and "effective control."

Editorial impact label: High

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May 29, 2026

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FAQ clarifying Cyprus’s Qualified Income Inclusion Rule (IIR) under the EU Pillar 2 Directive

On 29 May 2026 the European Commission published a FAQ clarifying that all EU Member States must treat Cyprus as having a qualified IIR for fiscal years commencing 31 December 2023, for purposes of Pillar 2 compliance—including for first Top-up Tax Information Returns due 30 June 2026. This ensures Cyprus’s IIR is recognised despite delay in appearing on the OECD Central Record.

Editorial impact label: Medium

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May 29, 2026

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Cyprus

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Pillar 2 Global Minimum Tax Directive: Qualified status for the Cyprus Income Inclusion Rule (IIR) clarified

In a FAQ published 29 May 2026, the European Commission clarified that Cyprus must be treated by all EU Member States as having a qualified Income Inclusion Rule for the Pillar 2 Global Minimum Tax, for fiscal years commencing on or after 31 December 2023. This means that Cyprus’s IIR is recognised for purposes of reciprocal application under EU law, despite Cyprus not being a member of the OECD Inclusive Framework.

Editorial impact label: Medium

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May 29, 2026

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Proposed

Treasury, IRS issue Section 892 proposed regulations to provide grandfathering protection and transitional relief to sovereign investors

The U.S. Treasury and IRS issued guidance IR-2026-69 (May 29, 2026) providing **grandfathering** protection and a **transition period** for foreign governments or sovereign investors in response to proposed rules under Section 892 that would limit exemptions for passive U.S. investment income when engaging in “commercial activities” or under “effective control.” Existing investments are protected, and entities have at least 90 days or until the start of the next taxable year to comply. Implications include possible loss of tax exemption for certain income unless structured before relief expiry.

Editorial impact label: High

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May 29, 2026

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CRA drop boxes to permanently close after 2026 tax filing season

The Canada Revenue Agency will close all physical drop boxes at 45 locations across Canada effective May 29, 2026. Tax returns, payments or other documents must use electronic submissions, mail, or in-person services thereafter.

Editorial impact label: Low

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May 29, 2026

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Proposed

Expanded access and streamlined eligibility for the Disability Tax Credit (DTC)

Spring Economic Update 2026 proposes changes including expanding the types of medical practitioners who can certify impairments, recognizing public guardians or trustees for certain adult applicants, and streamlining applications for formally diagnosed long-lasting conditions to increase access and reduce paperwork.

Editorial impact label: Medium

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May 29, 2026

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