Brazil amends Pillar Two QDMTT rules to introduce substance-based tax incentive safe harbour

Pakistan’s Federal Board of Revenue (FBR) had introduced tougher sales tax enforcement measures targeting digital non-compliance, fake and flying invoices, and unmatched input tax claims. The provisions had also established a public register for businesses issuing simulated invoices.

The Council of Ministers has approved a bill authorising a reduction in personal income tax rates for the first six brackets of taxable income, taking effect for earnings from 1 January 2026, marking the fifth such cut since April 2024.

The European Commission and the Philippines have concluded negotiations on a free trade agreement covering tariffs, market access, public procurement, digital trade, and sustainability, with formal signing expected in 2027.

The State of Qatar and the Russian Federation signed a memorandum of understanding on technical cooperation in tax administration on 17 September 2026. The agreement covered digital transformation, tax compliance, tax collection, debt management and the exchange of tax expertise.

The Netherlands has updated its guidance on the corporate interest deduction limitation, clarifying the treatment of adjusted taxable profit, financial instruments, asset transactions, and interest-related expenses under the earnings stripping rules.

Bill 3.540/2026 would reduce the CSLL rate for local reinsurers from 15% to 9% and remove the 30% cap on tax loss offsets for reinsurance and retrocession activities, aiming to address tax differences between domestic and foreign reinsurers and strengthen Brazil’s local reinsurance market.