Global Tax Tracker
Law Changes & Implications

The EU AI Act (Regulation 2024/1689) has been established as the world's first comprehensive legal framework for artificial intelligence. The Act implements a risk-based approach with four levels of AI system risk, including banned practices for unacceptable risk AI systems such as social scoring and real-time biometric identification.

While not directly tax-related, this regulation will impact how multinational clients deploy AI systems across their operations, requiring compliance assessments and potential restructuring of AI-dependent business processes. Advisory firms may need to coordinate with technology and regulatory specialists to ensure client AI systems meet the new requirements.

All businesses operating in the EU that develop, deploy, or use AI systems in their operations, particularly those in high-risk sectors.

Treasury and IRS announced a process for developing tax guidance following DOJ's final order on medical marijuana rescheduling. This represents a significant shift in federal tax treatment of cannabis-related businesses.

Tax advisors will need to prepare for substantial changes in Section 280E deduction limitations and other cannabis tax restrictions. New guidance could dramatically alter the tax landscape for medical marijuana businesses.

Medical marijuana dispensaries, cultivators, and related cannabis businesses currently subject to Section 280E restrictions.

IFRS 18 replaces IAS 1 and introduces new requirements for financial statement presentation, including two mandatory subtotals in profit/loss statements (operating profit and profit before financing/taxes) and disclosure requirements for management-defined performance measures. The standard also adds new principles for aggregation and disaggregation of financial statement items.

Accounting and law firm advisors must prepare clients for significant changes to financial statement structure and disclosure requirements that will affect how companies present their financial performance. This will require updating accounting policies, systems, and processes well before the 2027 effective date, with potential impacts on compliance procedures and financial reporting workflows.

All entities that prepare financial statements under IFRS standards globally, including public companies, subsidiaries of international groups, and other IFRS adopters.

The European Commission's Corporate Sustainability Due Diligence Directive webpage has been updated with new content structure and navigation. The page now features enhanced organization with clearer sections on the Commission's role, priorities, and topics including sustainability matters.

While this appears to be a structural website update rather than substantive regulatory changes, advisors should monitor for any underlying policy updates to the CSDDD that may affect client compliance obligations. The improved navigation may provide better access to detailed implementation guidance.

Large EU companies and multinational corporations subject to corporate sustainability due diligence requirements under the directive.

The EU has enacted Regulation (EU) 2024/1689, known as the AI Act, establishing the world's first comprehensive legal framework for artificial intelligence. The regulation introduces a risk-based approach with four levels of risk classification, prohibiting eight specific AI practices deemed unacceptable including harmful manipulation, social scoring, and certain biometric identification systems.

Advisors must assess whether clients' AI systems fall under the regulatory scope and help them understand compliance obligations based on risk classifications. This may require new advisory services around AI governance, risk assessment, and regulatory compliance as the framework affects business operations across multiple sectors.

All businesses developing or deploying AI systems within the EU, particularly technology companies, financial services firms, healthcare providers, and any organization using AI for decision-making processes.

The EU's Carbon Border Adjustment Mechanism transitions from its transitional phase to definitive regime on 1 January 2026. EU importers of carbon-intensive goods exceeding 50 tonnes must now apply for authorized CBAM declarant status and purchase CBAM certificates based on EU ETS allowance prices.

Advisors must immediately guide clients through the CBAM authorization application process and establish systems for emissions reporting, certificate purchasing, and annual declarations. This represents a significant new compliance burden requiring integration with existing customs and environmental reporting procedures.

EU importers and their indirect customs representatives importing carbon-intensive goods (cement, iron, steel, aluminum, fertilizers, electricity, hydrogen) exceeding 50 tonnes annually.

The US Treasury issued several press releases covering cybersecurity initiatives for digital assets, CDFI program abuse prevention, guidance for religious organizations, and tax filing relief for DHS personnel. New rules are proposed to implement the GENIUS Act's anti-illicit finance requirements.

Tax and legal advisors should review the religious organization guidance and DHS filing relief provisions for immediate client impact. The cybersecurity and anti-illicit finance measures may create new compliance obligations for relevant client sectors.

Religious organizations, DHS personnel, digital asset industry participants, and community development financial institutions are directly affected by these various measures.

IFRS 18 Presentation and Disclosure in Financial Statements will replace IAS 1, requiring entities to present two new defined subtotals in profit or loss statements: operating profit and profit before financing and income taxes. The standard also mandates disclosure of management-defined performance measures and introduces new principles for aggregation and disaggregation of financial statement items.

Accounting and law firm advisors will need to help clients restructure their financial statement presentations and develop new reporting processes for the required subtotals and management performance measures. This represents a significant change in how companies present their financial performance to stakeholders and may require updates to internal reporting systems and procedures.

All entities preparing financial statements under IFRS standards globally will need to comply with these new presentation and disclosure requirements.

The EU's Carbon Border Adjustment Mechanism (CBAM) transitions from its transitional phase to its definitive regime starting January 1, 2026. EU importers or their indirect customs representatives importing more than 50 tonnes of CBAM goods must now apply for authorized CBAM declarant status and purchase CBAM certificates from national authorities.

Advisors must help clients understand new compliance obligations including certificate purchasing, emissions declarations, and annual surrendering requirements. The pricing mechanism is now clearly defined based on EU ETS allowances with quarterly averaging in 2026 and weekly averaging from 2027 onwards.

EU importers and their customs representatives importing carbon-intensive goods (cement, iron, steel, aluminum, fertilizers, electricity, hydrogen) exceeding 50 tonnes threshold.

The EU has updated its taxonomy classification system for sustainable activities, which defines criteria for economic activities aligned with net zero trajectory by 2050. The framework serves as a cornerstone of the EU's sustainable finance framework and market transparency tool to direct investments toward transition activities.

Advisors need to understand the updated classification criteria as this affects ESG reporting requirements and sustainability disclosures for clients. The taxonomy changes will impact how companies demonstrate environmental sustainability compliance and may affect green financing eligibility.

Financial and non-financial companies operating in the EU that need to report on sustainable activities or seek green financing.

The EU's Carbon Border Adjustment Mechanism enters its definitive phase on January 1, 2026, requiring importers of carbon-intensive goods exceeding 50 tonnes to obtain authorized CBAM declarant status. Importers must purchase CBAM certificates based on EU ETS allowance prices and annually declare embedded emissions in their imports.

Advisors need to help clients navigate the authorization process through the Authorisation Management Module and establish systems for emissions tracking and certificate purchasing. This represents a significant compliance burden requiring integration of carbon accounting with customs procedures.

EU importers and their indirect customs representatives importing more than 50 tonnes of carbon-intensive goods including cement, iron, steel, aluminum, fertilizers, electricity and hydrogen.

The EU has updated its taxonomy classification system for sustainable economic activities, reinforcing criteria for activities aligned with net zero trajectory by 2050. The framework continues to serve as a cornerstone tool for directing investments toward environmentally sustainable projects under the European Green Deal.

Advisors must ensure clients understand the updated classification criteria for sustainable activities and compliance requirements. This affects ESG reporting obligations and investment classification decisions for both financial and non-financial companies operating in the EU.

Financial institutions, investment firms, and multinational corporations with EU operations that need to classify economic activities as environmentally sustainable.

The US Treasury press releases page has been updated with various announcements from March 2026, including currency changes, sanctions, and regulatory updates. No specific tax policy or Pillar Two changes are evident in the extracted content.

The page update does not contain substantive tax regulatory changes that would immediately impact advisory services. Advisors should continue monitoring for actual tax policy announcements that may appear in future updates.

No specific client groups are affected by this particular page update as it contains no new tax regulations.

Kazakhstan's comprehensive tax reform package came into effect on 1 January 2026, modernising the country's entire tax system. The reform covers VAT, Corporate Income Tax, Social Sector Tax, progressive personal income taxation, and excise taxes. Key changes include updated VAT registration thresholds, revised CIT rates, new progressive income tax brackets, and significant changes to the excise duty framework. The reform is positioned as part of Kazakhstan's broader economic modernisation agenda.

Clients with operations in Kazakhstan — particularly in extractive industries, manufacturing, and financial services — need to review their tax positions against the new regime. Transfer pricing rules and CIT changes are most material for multinationals. Advisors with Central Asian client books should brief on the changes and assess impact on existing structures.

All businesses operating in Kazakhstan. Multinational groups with Kazakh operations or supply chains. Extractive industry clients (oil, gas, mining) particularly affected by excise changes.

From January 2026, tax authorities globally have shifted from VAT policy design for digital services to active enforcement and data-driven compliance. Over 125 countries now have VAT/GST on non-resident digital service providers. The 2026 shift involves: AI-driven cross-matching of VAT/GST filings against platform transaction data; expanded marketplace deemed-supplier rules (EU, Saudi Arabia, India); tighter non-resident registration triggers; real-time payment data access by tax authorities; and coordinated data sharing between tax administrations. India is intensifying OIDAR GST compliance monitoring using payment platform data from 2026.

Non-resident digital service provider clients that may have underregistered or under-declared in certain jurisdictions face significantly higher detection risk from 2026. The window for voluntary compliance reviews before enforcement catches up is closing. Advisors should proactively review digital client VAT/GST registration footprints across key markets and address any gaps before enforcement contact occurs.

Non-resident digital service providers (streaming, SaaS, e-commerce, apps) serving consumers globally. Platforms acting as deemed suppliers. Payment service providers used by digital businesses.

Brazil's comprehensive VAT reform — replacing multiple federal and state taxes with a dual VAT system (IBS at state/municipal level and CBS at federal level) — is entering its compliance obligation phase in 2026. Complementary Law No. 227 (January 2026) clarified digital platform liability under the IBS/CBS regime, confirming shared liability between platforms and domestic suppliers. A four-month penalty waiver was granted for new IBS/CBS e-invoice obligations to ease transition. The reform represents the most significant Brazilian tax restructuring in decades.

Clients with Brazilian operations are navigating one of the most complex tax transitions globally. The IBS/CBS system replaces ICMS, ISS, PIS, COFINS, and IPI progressively through to 2033, but compliance obligations are live now. Digital platforms in particular face shared liability exposure from January 2026. Advisors with Brazilian clients should brief on the phased transition timeline, interim dual compliance requirements, and the operational implications of the new e-invoice framework for IBS/CBS.

All businesses operating in Brazil. Digital platforms with Brazilian customers. Foreign companies selling into Brazil via platforms. Multinational groups with Brazilian subsidiaries managing the transition from the old multi-tax system.

At least seven countries launched mandatory B2B e-invoicing in 2026: Belgium (Jan 1), Croatia (Jan 1), Poland (Feb 1), Greece (Feb 2 for large taxpayers), Malaysia (expanded scope Jan 2026), UAE (July 2026 phased), France (Sep 1 for large/mid companies). This represents the single largest wave of e-invoicing mandates in a single year. All use structured XML or equivalent formats; Belgium, France, Poland, and Croatia are building on or aligning with the EU ViDA/Peppol framework.

Any client operating in multiple of these jurisdictions faces simultaneous compliance demands. ERP and invoicing system updates need to handle multiple structured formats and submission channels. Advisors with international clients — particularly in manufacturing, distribution, and professional services — should conduct a cross-jurisdiction e-invoicing compliance audit. This wave is a preview of the global direction: within 3-5 years, structured e-invoicing will be the norm across most major economies.

All businesses with VAT registrations in Belgium, Croatia, Poland, Greece, Malaysia, UAE, or France. Particularly material for multinational groups running centralised invoicing systems.

The global digital services tax landscape is fragmenting significantly in 2026. Canada has withdrawn its planned 3% DST to ease US trade tensions. The EU is considering a 3% DST to counter US tariffs. Czech Republic has proposed a 7% DST on large multinationals. Rwanda enacted a 1.5% DST. Uganda replaced its 5% DST with a 15% withholding tax on non-resident providers. The UK is maintaining its 2% DST. Mauritius introduced 15% VAT on foreign digital services from January 2026. The US trade tensions over DSTs targeting US tech firms are creating significant geopolitical uncertainty for any new DST legislation.

Multinational tech clients and platforms face an increasingly complex and shifting DST landscape. Country-by-country compliance monitoring is essential. The EU's consideration of a bloc-wide DST would create significant new exposure for large digital groups. Advisors with tech sector clients should be tracking each jurisdiction's approach and modelling potential exposure as the landscape continues to evolve through 2026.

Large digital platforms, tech companies, and multinational businesses with significant digital revenue streams. Most significant for companies with revenues above national DST thresholds (typically €750m global / €25m domestic).

Portugal reduced its standard corporate income tax (IRC) rate from 21% to 19% from 1 January 2026, as part of a broader package of tax simplification measures. The package also includes a VAT group regime from 1 July 2026 allowing consolidated VAT reporting, updated VAT filing frequencies based on turnover, and adjustments to indirect taxes. The rate reduction makes Portugal one of the more competitive corporate tax jurisdictions in Western Europe.

Clients with Portuguese operations benefit from a lower effective corporate tax rate — review group holding and IP structures with Portuguese nexus. The new VAT group regime from July 2026 offers significant cash flow and compliance efficiency benefits for groups with multiple Portuguese VAT-registered entities. Brief Portuguese corporate clients on the VAT group opportunity and the application process.

All Portuguese corporate taxpayers. Groups with multiple Portuguese entities (VAT group opportunity). Non-EU businesses assessing EU holding or IP structures.

The UAE implemented several VAT law amendments from 1 January 2026, simplifying compliance and aligning with international standards. Key changes: the requirement to issue self-invoices under the reverse charge mechanism has been removed (businesses must retain supporting documentation instead); a five-year time limit on claiming excess VAT refunds has been established; and input VAT deduction is disallowed on expenses linked to tax evasion cases. The UAE is also progressing toward a phased e-invoicing system expected by July 2026.

UAE clients should update internal processes to reflect the removal of self-invoice requirements under reverse charge — documentation retention requirements become more important. The five-year refund time limit creates a clean-up opportunity for clients with historic unclaimed excess VAT. Advisors should brief UAE clients on the forthcoming e-invoicing mandate and its expected July 2026 timeline.

All UAE VAT-registered businesses. Businesses using reverse charge for imported services. Businesses with historic excess VAT refund positions.

Saudi Arabia implemented a deemed supplier rule for digital services from 1 January 2026. Online marketplaces (platforms) are now liable for 15% Saudi VAT on digital services sold by non-resident vendors to Saudi customers. If a foreign company sells digital goods (e-books, apps, software, streaming) via a Saudi-registered or registered platform to Saudi users, the platform must collect and remit VAT. This relieves the foreign seller of direct Saudi VAT obligations and mirrors the EU's platform VAT rules.

Non-resident digital service providers selling through platforms into Saudi Arabia should reassess their VAT compliance position — platform liability shifts the primary obligation. Platforms registered in Saudi Arabia face new collection and remittance obligations for third-party digital sales. Advisors to Middle East e-commerce and digital platform clients should review supply chain structures.

Non-resident digital service providers selling to Saudi consumers via platforms. Online marketplace operators with Saudi VAT registration. Saudi consumers of cross-border digital services.

Greece introduced mandatory electronic invoicing from 2 February 2026 for large businesses (revenue above €1m in 2023). All remaining taxpayers must adopt e-invoicing from October 2026. Greece's e-invoicing system operates through the myDATA platform, which has been running for reporting purposes since 2021 — the 2026 mandates extend this to mandatory structured invoice issuance.

Greek clients and businesses with Greek VAT registrations need e-invoicing system compatibility with the myDATA platform. Advisors to Greek businesses — particularly those with significant SME client bases — should be aware of the October 2026 all-taxpayer deadline.

All Greek VAT-registered businesses. Large businesses (>€1m revenue) from February 2026; all others from October 2026.

France begins its mandatory B2B e-invoicing and e-reporting mandate on 1 September 2026 for large and medium-sized companies. From this date, large companies must issue structured e-invoices via a certified platform (PDP — Plateforme de Dématérialisation Partenaire) or the government's free portal (PPF). All businesses must be able to receive e-invoices from 1 September 2026. Small businesses (below €800k turnover) have a later deadline. France's system requires both e-invoicing (for domestic B2B) and e-reporting (for B2C and cross-border transactions).

French clients and non-French businesses with French VAT registrations must select a certified PDP or use the PPF by September. This is a significant operational change requiring ERP/invoicing system updates. Advisors to French businesses should assess readiness now — the September 2026 deadline for large companies is approaching. The system also creates a new real-time data feed of transaction data to French tax authorities (DGFiP).

All French VAT-registered businesses. Large companies (first wave September 2026). All businesses must receive e-invoices from September 2026. SMEs follow in subsequent waves.

China's first standalone VAT Law came into force on 1 January 2026, replacing the provisional VAT regulations that had governed the system since 1994. The new law consolidates and codifies VAT rules into a single legislative framework, covering all VAT-taxable activities, rates (13%, 9%, 6%), zero-rating, exemptions, input tax credits, and refund procedures. While most operational rules remain similar to the prior provisional regulations, the law provides greater legal certainty and resolves longstanding interpretive ambiguities particularly around cross-border services, digital economy transactions, and financial services.

Clients with China operations should review contracts, invoicing, and compliance processes against the new law. Specific areas to assess: cross-border service VAT treatment, supply chain VAT recovery positions, and digital platform obligations. The new law signals a longer-term trajectory toward Chinese e-invoicing expansion and real-time reporting — advisors should begin briefing clients on the direction of travel.

All businesses with operations in mainland China and any foreign businesses supplying services into China. Particularly relevant for clients in financial services, technology, and cross-border e-commerce.

Belgium introduced mandatory B2B e-invoicing from 1 January 2026 for all VAT-registered businesses. All invoices between Belgian VAT-registered businesses must be issued and received in structured electronic format (Peppol BIS Billing 3.0 via the Peppol network). A three-month grace period applies until 31 March 2026 for businesses still transitioning. Belgium is the first EU member state to implement a comprehensive mandatory B2B e-invoicing mandate ahead of the EU-wide ViDA framework.

Belgian clients and non-Belgian businesses with Belgian VAT registrations must have e-invoicing capable systems in place. Firms with Belgian audit or advisory clients need to verify invoicing system compliance. The three-month grace period reduces immediate penalty risk but transition should be completed promptly. This is a preview of ViDA requirements that will eventually apply EU-wide.

All Belgian VAT-registered businesses and any non-Belgian businesses with a Belgian VAT registration issuing B2B invoices. Accounting firms billing Belgian business clients.

DAC8 (Directive 2023/2226/EU) entered its reporting phase on 1 January 2026 following member state transposition deadlines of December 2025. Crypto-asset service providers (CASPs) and e-money issuers must now report transactions by EU tax residents to national tax authorities, who will automatically exchange information across member states. The framework incorporates the OECD Crypto-Asset Reporting Framework (CARF). First reporting covers calendar year 2026 activity, with exchange in 2027.

Accounting and law firms advising clients with crypto holdings or digital asset activities face new mandatory disclosure obligations. CASPs in scope must have reporting infrastructure in place from January 2026. Clients who are high-volume crypto traders or hold significant digital assets should be advised that their transaction data will now reach tax authorities automatically — bringing offshore crypto holdings into the same information exchange framework as bank accounts under DAC2/CRS.

Crypto-asset service providers operating in or serving EU residents. EU tax residents with crypto-asset transactions through CASPs. Accounting/law firms advising clients in digital assets, DeFi, or crypto treasury management.

The EU Carbon Border Adjustment Mechanism (CBAM) moved from its transitional reporting-only phase into the definitive period on 1 January 2026. Importers of steel, cement, aluminium, fertilisers, electricity, and hydrogen must now purchase and surrender CBAM certificates corresponding to the verified embedded carbon in their imports. Certificate prices track the EU ETS carbon price (currently €60–80/tonne CO₂). Importers above the 50-tonne annual threshold must hold authorised CBAM declarant status. Annual declarations for FY2026 activity are due 31 May 2027.

Clients importing any of the six covered sectors into the EU now face real financial exposure — not just reporting. Advisors need to assess clients' authorised declarant status, verify embedded emissions data from non-EU suppliers, and model certificate cost exposure. Indirect customs representatives also require declarant status when assuming CBAM obligations. EU ETS free allowance phase-out running in parallel increases the overall carbon cost burden for EU manufacturers.

EU importers of steel, cement, aluminium, fertilisers, electricity, and hydrogen above 50 tonnes annually. Non-EU producers supplying these sectors to EU customers must provide verified actual emissions data. Indirect customs representatives taking on CBAM obligations.

On 5 January 2026, the OECD Inclusive Framework released the Side-by-Side (SbS) Package — new administrative guidance introducing four safe harbours under the Pillar Two GloBE rules. The centrepiece is the SbS Safe Harbour exempting MNE Groups headquartered in qualifying jurisdictions (currently only the US) from the IIR and UTPR. Additional measures include a new Simplified ETR Safe Harbour replacing the transitional CbCR safe harbour from FY2027, a Substance-Based Tax Incentive Safe Harbour for qualifying expenditure- and production-based incentives, and an extended transitional safe harbour at 17% for FY2026–2027.

US-parented MNE clients may elect out of IIR and UTPR exposure under the SbS Safe Harbour provided domestic implementation is enacted. Non-US MNE clients remain in full GloBE scope — review ETR models against the new Simplified ETR Safe Harbour thresholds. The Substance-Based Tax Incentive Safe Harbour changes how qualifying green incentives interact with GloBE, benefiting clients with R&D and manufacturing expenditure. Transitional safe harbour extended at 17% — review filing positions for FY2026.

All MNE Groups with consolidated revenue above €750m. Most significant for US-parented groups (SbS Safe Harbour) and any group claiming green tax incentives (new QRTC/QTI safe harbour treatment). EU-parented groups: full GloBE applies — QDMTT protects local tax base.

The EU's Carbon Border Adjustment Mechanism (CBAM) definitive regime begins January 1, 2026, requiring importers of carbon-intensive goods exceeding 50 tonnes to obtain authorized CBAM declarant status. The authorization application process through the Authorisation Management Module is now active and requires immediate attention.

Advisors must immediately guide clients through the CBAM authorization application process to ensure compliance before the January 2026 deadline. Failure to obtain authorization will prevent clients from importing covered goods into the EU, creating significant supply chain disruptions.

EU importers and their indirect customs representatives importing more than 50 tonnes of CBAM-covered carbon-intensive goods including cement, iron, steel, aluminum, fertilizers, electricity and hydrogen.

The EU taxonomy classification system for sustainable activities has been updated with new criteria for economic activities aligned with net zero trajectory by 2050. The framework continues to define what constitutes environmentally sustainable economic activities under the Taxonomy Regulation.

Advisors need to review updated sustainability criteria that affect client reporting obligations and investment classifications. The changes will impact how companies demonstrate compliance with green taxonomy requirements and avoid greenwashing allegations.

Financial and non-financial companies subject to EU taxonomy disclosure requirements and those seeking sustainable investment classification.

The US Treasury press releases page has been updated with recent announcements including tax policy communications. A March 10, 2026 release highlights President Trump's tax cuts benefiting American families and workers.

This appears to be routine communication about existing tax policy rather than announcing new regulatory changes. Advisors should monitor for any detailed policy guidance or implementation updates that may follow these general announcements.

US taxpayers, particularly individuals and families benefiting from existing tax cut provisions.