Vietnam gazettes decree updating transfer pricing rules

The Kenya Revenue Authority fixed the market interest rate at 8% for fringe benefit tax and deemed interest on specific non-resident loans for the July–September 2026 quarter, effective 8 July 2026, with a 15% withholding tax on deemed interest payable within 5 working days; the low interest benefit rate under Section 5(2A) of the Income Tax Act also rises to 8% through 31 December 2026.

The IRS introduced the Automatic Exemption from Penalty (AEP) on 8 July 2026, effective summer 2026, to automatically waive failure-to-file, failure-to-pay, and failure-to-deposit penalties for taxpayers with three consecutive years of timely compliance, replacing the First Time Abate process for all eligible returns with original due dates on or after 1 January 2027.

Italy's Revenue Agency confirmed via Response no. 137 that Simple Agreements for Future Equity (SAFE) contracts qualify as convertible investments eligible for the 65% IRPEF deduction under Article 29-bis of Legislative Decree no. 179/2012, with Law No. 193/2024 allowing investors to claim the relief upon payment rather than waiting for actual conversion into shares, provided the startup is within three years of its initial registration.

The European Commission has issued a reasoned opinion to France after finding that it has not provided all the IT functionalities required under Directive (EU) 2020/285 to support the exchange of information between Member States for the special VAT scheme for small enterprises.

Romania has approved the model and content of Form (F8000), which will be used by reporting crypto asset service providers, with the final rules largely unchanged from the version released for public consultation earlier this year.

The European Commission has launched infringement procedures against Germany, France and Italy, saying their tax treatment of dividends from subsidiaries in other EU Member States breaches the Parent-Subsidiary Directive, as part of a wider July 2026 enforcement package covering 11 policy areas.