ITS Monthly News - July 2026

Welcome to the latest edition of International Tax News. I'm Jeff Jacoby, a managing director at PwC based in Washington, D. C. In this edition, we cover selected tax updates from around the world, including Doug's favorite topic, Pillar Two. If you would like to go in-depth on similar topics, check out the Cross-Border Tax Talks podcast in video on YouTube or in audio wherever you find your podcast. Now turning to our current edition. First, Australia recently finalized amendments to its global and domestic minimum tax rules to support the effective operation of Pillar Two. The changes are intended to align Australia's framework more closely with OECD guidance and administrative developments. Key updates address flow-through entity allocations, covered tax allocations under blended CFC regimes, loss carryforward rules, and the treatment of investment entities. The amendments also extend the transitional country-by-country reporting safe harbor period, and refine operation of the QDMTT safe harbor. Importantly, these amendments apply retroactively to fiscal years beginning on or after January 1st, 2024. Next, the Dominican Republic enacted a broad tax reform package designed to promote growth, simplify administration, improve compliance, and support fiscal consolidation. The legislation became effective in June 2026 and includes several measures relevant to multinational businesses. Among the most significant changes are a temporary increase in the corporate income tax rate for certain large taxpayers, and new withholding tax rules affecting royalties, technical assistance, software licenses, online advertising, and data storage arrangements. The legislation also introduces accelerated appreciation for qualifying investments. Finally, Poland has approved significant amendments to its mandatory disclosure rules regime, with the changes scheduled to take effect on October 1st, 2026. The reform package includes numerous revisions affecting both the scope of reportable arrangements and compliance procedures. The amendments eliminate reporting for certain domestic arrangements, modify key definitions such as the main benefit test, remove selected hallmarks, and exclude VAT and excise duties from the MDR framework. The legislation also streamlines certain filing obligations and reporting processes. Despite these simplification measures, penalty exposure remains unchanged. Thank you for reading PwC's International Tax News. We look forward to seeing you again on the next edition and on the next episode of the Cross-Border Tax Talks podcast.