2026
Hong Kong Consults on Tax Breaks for Corporate Treasury Centers
Hong Kong's government opened a consultation July 27 on tiered tax incentives for corporate treasury centers under the action plan it announced June 9, proposing to let CTCs defer deductions for interest paid to related foreign companies until the recipient becomes taxable, to widen the range of corporations eligible for interest deductions, and to clarify the substantial activity requirement and intragroup financing benchmark. A second tier would add a preapproval mechanism granting further benefits over a five-year validity period. Comments are due September 4, with administrative clarifications expected later this year and legislative amendments in the first half of 2027.
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Public Country-by-Country Reporting Bill Is a Compliance Warning
The Disclosure of Tax Havens and Offshoring Act, reintroduced on July 16, would direct the Securities and Exchange Commission to require large multinational issuers to disclose country-by-country financial and tax information. If enacted, the bill would impose substantial compliance burdens and increase reputational and business risks for multinationals.
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Public Tax Filings Risk Negative Impacts, Top OECD Official Says
New public tax transparency directives risk having a “negative effect” on policy, the OECD’s top tax official said, but reducing disparities in their implementation could improve their usability.
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U.S. Tech Group Urges Trump to Step Up Fight Against DSTs
Digital services and digital advertising taxes in Austria, France, Italy, Spain, and the United Kingdom raised roughly $3.6 billion in 2025 — a record and a 20 percent jump over 2024 — according to a July 23 CCIA report urging the Trump administration to act under section 301. Trump announced a section 301 investigation against the EU on July 24 after threatening 100 percent tariffs in June, but member states are pressing ahead: Poland's DST bill nears the formal legislative process, Belgium's program contemplates one by 2027, and the European Parliament is pushing an EU-wide DST as a budget own resource, with an Irish presidency compromise text due in October.
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EU Advisory Group Backs 28th Regime, Urges Legal Certainty
The European Economic and Social Committee endorsed the tax provisions of the EU's proposed 28th regime in an opinion transmitted to the council July 24, welcoming a common nondiscriminatory framework for stock option schemes and the deferral of taxation until the shares are sold. But the advisory body warned that the regulation's article 114 legal basis creates uncertainty for founders and investors — echoing the council's legal service, which cautioned in June that the CJEU could annul the measure unless article 50 is used — while the Irish presidency's July 18 compromise text left the basis untouched.
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IEEPA Tariff Challengers Sue Over New Iteration of Trump Levies
Two importers asked the U.S. Court of International Trade on July 24 to block the section 301 tariffs the USTR announced a day earlier, arguing in Burlap and Barrel Inc. v. Greer that a targeted, country- and practice-specific remedial authority cannot support 10 percent to 12.5 percent duties on 60 trading partners covering 99.4 percent of U.S. imports. The complaint — filed by the Liberty Justice Center, which litigated the IEEPA challenge in V.O.S. Selections — contends the USTR set rates tracking the invalidated IEEPA program and assembled economy-specific findings afterward, pointing to Bessent's statements on preserving tariff revenue as evidence the action is a replacement for the section 122 tariffs that expired July 24.
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