Spain clarifies Pillar Two exclusion for publicly owned commercial entities

21 August, 2026

Spain’s DGT has ruled that publicly owned commercial entities are not automatically excluded from Pillar Two, with eligibility for governmental entity status requiring a case-by-case assessment against four statutory conditions.

Spain clarifies Pillar Two exclusion for publicly owned commercial entities

🇦🇺 Australia

Australia: Senate passes tax reform bill introducing permanent loss carry-back, AUD 20,000 asset write-off

21 August, 2026

The Australian Senate approved the Treasury Laws Amendment (Tax Reform No. 2) Bill 2026, locking in a permanent corporate loss carry-back regime, a permanent AUD 20,000 instant asset write-off for small business, and a decade-long income tax exemption for PNG Chiefs Limited employees tied to Papua New Guinea's 2028 NRL entry.

🇸🇰 Slovak Republic

Slovak Republic clarifies corporate minimum tax rules, offers 50% reduction for 20% disabled workforce

21 August, 2026

The Slovak Republic’s Financial Administration published guidelines on 18 August 2026 for the minimum tax on legal entities under Law 261/2025, effective 1 January 2026, imposing annual obligations from EUR 170 to EUR 11,520 based on taxable income, with a new bracket for companies over EUR 5 million and 50% reductions for employers with 20% disabled workforce representation.

🇨🇳 China

China new offshore trust tax forces wealthy to reassess holdings

21 August, 2026

China has intensified tax enforcement on offshore trusts, insurance policies, and other foreign-source income, requiring wealthy investors to disclose and settle certain unpaid taxes as authorities expand scrutiny of overseas assets.

🇺🇸 US

US: IRS updates FAQs about the limitation on the deduction for business interest expense

21 August, 2026

The IRS updated guidance on 19 August 2026 for section 163(j) business interest deduction limits, with the One, Big, Beautiful Bill Act restoring depreciation add-backs to adjusted taxable income calculations effective 2025 and excluding controlled foreign corporation income inclusions from that calculation starting 2026.

🇦🇺 Australia

Australia tech levy takes effect against platforms avoiding news deals

21 August, 2026

Australia’s new News Bargaining Incentive will impose a 2.5% levy on qualifying digital platforms’ Australian advertising revenue unless they strike commercial agreements with local publishers, with larger tax credits available for deals supporting smaller news outlets.

🇰🇷 Korea (Rep.)

Korea (Rep.) plans response fund to use tax windfalls for youth, AI

21 August, 2026

Korea (Rep.) plans to establish a Future Response Fund to channel excess tax revenue towards younger people and investment in artificial intelligence and other growth industries.

🇿🇦 South Africa

South Africa: SARS consults on digital VAT modernisation

21 August, 2026

SARS has opened consultation on a proposed Digital VAT Model that would introduce structured e-invoicing, an Interoperability Framework (IF), near real-time e-reporting and automated VAT assessments.

🇮🇳 India

India enacts tax amendments with corporate rate changes, extended electronics incentives and new exemptions

21 August, 2026

India has introduced a series of tax changes covering corporate rates, foreign company exemptions, investment funds, business trusts and specified government securities under legislation enacted on 17 August 2026.

🇱🇹 Lithuania

Lithuania updates corporate tax guidance on CFC control, PE, group definitions

21 August, 2026

VMI has updated its commentary on the Law on Corporate Income Tax, clarifying the scope of controlled foreign taxable subjects, CFC entities, groups of entities, positive income and target territories.