Germany: Federal Cabinet unveils draft 2027 income tax reform, splits trade tax revenue for data centre companies

Chile’s tax authority has ruled that a proposed restructuring of a Panamanian foundation and its underlying companies would not trigger offshore indirect transfer taxation or a taxable wealth increase for beneficiaries. The ruling also clarifies that the existing tax basis remains at the company level where the underlying entities continue to hold the disclosed investment assets.

Iceland’s Ministry of Finance and Economic Affairs has proposed amendments to the vehicle kilometre tax regime that would introduce new exemptions, allow corrections to inaccurate assessments, and clarify business deductibility. The changes would also provide greater flexibility for odometer reporting and vehicle inspections, with the amendments proposed to take effect on 1 January 2027.

The US Internal Revenue Service has urged taxpayers and businesses to safeguard tax and financial records ahead of potential disasters, recommending secure backups, property documentation, and updated emergency plans. 

New Zealand Inland Revenue has proposed updated guidance on the taxation of cross-border software payments, clarifying the treatment of cloud services, resellers, and mixed software arrangements. The draft confirms that SaaS, PaaS, and IaaS are generally treated as services rather than royalties, while payments involving copyright or know-how may remain subject to withholding tax.

Italy’s Revenue Agency has confirmed that companies operating in the Single Economic Zone (ZES Unica) can claim the 2026 regional tax credit for equipment acquired through leasing, even where the lease was signed and the asset delivered before the mandatory advance notification. 

Taiwan's tax authorities confirm that businesses cannot reduce invoice amounts when late-completion penalties reduce project payments. The full contract value must be invoiced and taxed regardless of penalty offsets.