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Regulatory Updates

Global Updates – April 2026

Global updates – a quick glance

Argentina:

  • Income Tax Brackets Updated for 2026 – The Argentine tax authority (ARCA) published inflation‑adjusted corporate and individual tax brackets. Corporate rates remain at 25%, 30%, and 35% with higher thresholds; individual brackets and thresholds were also raised for January–June 2026 (with July–December brackets to follow).
  • Labor Modernization Law (effective March 6, 2026) – Argentina made major changes to its labour laws, including the Employment Contract Law and several related employment rules. Highlights include rules on seniority recognition (prior service not recognized if rehired after two years), digital labour records, flexible compensation and hour‑banking, streamlined resignation/severance rules, and creation of a Labour Assistance Fund funded by employer payroll contributions. Collective bargaining rules were modified, and special regimes for digital‑platform workers and domestic employees were introduced.

Canada:

  • British Columbia Budget for the year 2026 – The budget increased the personal tax rate for the lowest tax bracket from 5.06% to 5.6%, and the maximum tax reduction credit increases from CAD 575 to CAD 690. New children and youth disability supplement of CAD 6000 to be available from July 1, 2027. A 7% Provincial Sales Tax will apply to selected professional services such as accounting, bookkeeping, rental property management service, etc., requiring registration and compliance.
  • Québec Budget for the year 2026 – Personal income tax rates remain unchanged with 2.05% indexation of tax brackets. Automated tax filing will be enabled for some low-income taxpayers from 2027. Tax credit for development of e-Business (TCEB) is updated to an AI-based regime (TCEBAI) with stricter eligibility and revised benefits. Electronic filing will be enabled for certain information returns for transactions after March 18, 2026.
  • Ontario Budget for the year 2026 – The budget reduces the small business tax rate for Canadian-controlled private corporations (CCPCs) from 3.2% to 2.2% (from July 1, 2026) while keeping the general corporate tax rate unchanged at 11.5%. The budget also introduces enhanced capital cost allowance and immediate expensing, aligned with federal rules.

China:

  • China tightens VAT Registration Rules from January 1, 2026 – Businesses with annual taxable sales over RMB 5 million must register as full VAT taxpayers (with certain sectors required to register regardless of turnover). Once the threshold is exceeded, registration will need to be done within 10 days and will have retroactive effect from the first day of the period when the turnover exceeded the threshold. Thus, the taxpayers would be required to amend past VAT returns, and they can claim input VAT credits.
  • Chinese Government’s Opinion to Clarify Work Injury Coverage – The opinion clarifies terms such as work hours, workplace, work-related injury, commuting injury, and injuries in case of home-based working.

Croatia:

  • VAT and E‑Invoicing Reforms (effective January 1, 2026) – Amendments to the VAT Act introduce mandatory e‑invoicing for all domestic B2B supplies and extend VAT return deadlines to the last day of the following month.

Finland:

  • Higher Health Insurance Contribution Rates for 2026 – Employer health insurance contributions increase to 1.91% (up from 1.87%), while employees’ healthcare contribution rises to 1.10% and the daily allowance contribution to 0.88% for those earning at least EUR 17,255 annually.

France:

  • French Parliament passes Finance Act 2026 – The Act extended the surtax on large companies by one more year, but the turnover threshold for applicability increased from EUR 1 billion to 1.5 billion. The abolition of CVAE was delayed to 2030. Personal income tax brackets for 2026 increased by 0.9%. The applicability of a minimum 20% tax on high-income households is extended. Additionally, a small parcel tax of EUR 2 will apply from March 1, 2026, on low-value imports from non-EU countries.
  • France to shift VAT provision to New Code effective September 1, 2026 – VAT rules will be moved to a new Goods and Services Tax Code (CIBS) with updated structure, terminology, and incorporation of EU principles and elements of ViDA package.
  • France Strengthens E-Invoicing and E-Reporting Rules with Higher Penalties – The 2026 Budget Law confirms the public invoicing portal (PPF) as the central invoice directory. E-reporting will apply only to B2C and cross-border transactions. Further penalty increases to EUR 50 per invoice (capped at EUR 15,000 annually) and EUR 500 per transmission (capped at EUR 15,000 annually).

Germany:

  • Social‑Security Thresholds & Tax Changes (from January 1, 2026) – Contribution limits increased to EUR 5,812.50 per month for health insurance and EUR 8,450 per month for pension insurance. The income threshold for private health insurance increases to EUR 77,400. Basic tax‑free allowance, commuter allowance, and child allowances are increased; the child‑benefit payment rises to EUR 259 per month.
  • Crypto‑Asset Tax Transparency Act (KStTG) (effective January 1, 2026) – Germany implemented the EU DAC8 requirements, imposing annual reporting of user and transaction data on crypto asset service providers (exchanges, wallets, brokers, etc.). Providers must register with the Federal Central Tax Office, perform KYC checks, and report data electronically, with first reports due by July 31, 2027.

Honduras:

  • 2026 Individual Income Tax Brackets – The Honduras Revenue Administration Service has revised the progressive tax rates for personal income tax for 2026, with income up to HNL 228,324.32 taxed at 0%, up to HNL 348,154.10 at 15%, up to HNL 809,660.75 at 20%, and the balance at 25% while the annual medical deduction of HNL 40,000 remains unchanged.

Hong Kong:

  • Continuous‑Contract Requirement Amended (effective January 18, 2026) – The Employment Ordinance now deems an employee under a continuous contract if they work more than 17 hours per week (previously 18) or more than 68 hours over four weeks.

India:

  • DIN KYC Simplified (effective March 31, 2026) – Directors must complete KYC every three years instead of annually.
  • Foreign‑Exchange Regulations for Exports/Imports (effective October 1, 2026) – RBI’s new principle‑based framework requires mandatory Export Declaration Forms for goods and services and sets realisation timelines (18 months for INR invoicing, 15 months otherwise).
  • Revised PAN Rules (from April 1, 2026) – PAN applications must use new category‑specific forms; Aadhaar‑only applications are discontinued. PAN quoting is required for specified transactions at revised thresholds (cash withdrawals more than INR 1 million per year, cash deposits more than INR 1 million per year, motor‑vehicle purchases more than INR 500,000, property purchases more than INR 2 million, and hotel/restaurant cash payments more than INR 100,000).
  • Companies Compliance Facilitation Scheme 2026 (April 15, 2026– July 15, 2026) – A one‑time scheme allows defaulting companies to regularize filings at reduced fees (10% of additional fees for late filings), apply for dormant status at 50% fee, or strike off at 25% fee.

Ireland:

  • Enhanced R&D Tax Credit (Finance Act 2025) – The R&D credit rises from 30% to 35%, and the threshold for cash refund in the first year increases to EUR 87,500. Salaries of employees spending more than 95% of their time on R&D are fully qualifying. Changes apply to accounting periods starting on or after 2026.
  • DAC8 Implementation (from January 1, 2026) – Ireland adopts EU rules requiring crypto‑asset service providers to report user and transaction data and exchange the information with other EU states. Due diligence and KYC procedures are mandated; first reports are expected in 2027.

Israel:

  • Israel Lowers E-Invoicing Allocation Number Threshold – The Israel Tax Authority (ITA) has reduced the threshold for mandatory allocation numbers on B2B invoices from NIS 20,000 to NIS 10,000 (from January 1, 2026) and further to NIS 5,000 (from June 1, 2026). Taxpayers may lose input VAT credit if allocation numbers are not reflected on invoices.

Japan:

  • 2026 Tax Reform Proposals – The outline proposes incentives for investments in specified production facilities (immediate depreciation or 4%–7% tax credit) and generous credits (40%–50%) for R&D in strategic technologies (AI, semiconductors, etc.) with tightened conditions for existing R&D credits. It includes consumption‑tax changes (JCT) bringing low‑value cross‑border goods and e‑commerce platforms into the tax net from 2028, and transitional relief for non‑qualified invoices. Pillar Two rules are implemented for large multinationals from fiscal year 2026, with crypto‑asset gains taxed at 20%.
  • Labor‑Law Amendments (effective December 7, 2025) – Maternity leave increases from 98 to up to 120 days; paid‑leave entitlements increase (full pay for 60 days, previously 45 days); infant‑care leave (15 days at 50% pay) and spouse‑childbirth leave (15 days paid) are introduced.
  • Gender Pay Gap & Diversity Disclosure (from April 1, 2026) – Companies with over 300 employees must disclose women’s representation in management; companies with 101–300 employees must report both gender‑pay gaps and share of female managers. Data must be published within three months of the fiscal year‑end.

Mexico:

  • UMA Values Increase by 3.69% (effective February 1, 2026) – The Unit of Measurement and Update (UMA) values, which influence tax thresholds, social‑security contributions, and fines, rise to MXN 117.31 per day, MXN 3,566.22 per month, and MXN 42,794.64 per year.
  • Mandatory Training to Prevent Violence Against Women (effective January 16, 2026) – Employers must provide regular training to all staff on identifying, preventing, and reporting workplace violence against women and maintain documentation of participation. Penalties for non‑compliance range from ~MXN 29,000–586,000.

Netherlands:

  • Netherlands–Germany Tax Treaty Eases Remote Work Rules (Effective January 1, 2026) – cross-border employees may work from home for up to 34 days per year without triggering additional tax liability in their country of residence as per the amended tax treaty between the Netherlands and Germany.  This relief is not available to employees regularly working 1–2 days per week from home, as they would exceed the limit.
  • Dutch Senate approves DAC8 crypto reporting rules (effective January 1, 2026) – New EU-aligned rules require crypto-asset service providers (including MiCA-licensed exchanges and custodial wallet providers) to collect and report client and transaction data annually to tax authorities by 31 January (first report due January 31, 2027 for 2026 data). This will enable automatic cross-border exchange of information within the EU.

Poland:

  • Labor‑Code & Social‑Benefits‑Fund Amendments (effective January 27, 2026) – Employers and employees may conduct many HR procedures (work schedules, monitoring notices, union consultations) electronically. Cash equivalents for unused leave must be paid on regular salary dates. Where no trade union exists, employers must consult at least two employee representatives (previously one) on remuneration and social‑benefits regulations.
  • Sick‑Leave Rules Revised (from January 27, 2026; phased changes through January 1, 2027) – Paid work or any activity that delays recovery (except incidental tasks or basic daily activities) may result in loss of sick pay. Doctors, nurses, and physiotherapists can issue sick‑leave certificates.
  • National E‑Invoice System (KSeF) Mandate – Mandatory e‑invoicing begins in phases: companies with gross sales more than PLN 200 million (from February 1, 2026), all other VAT‑registered businesses (from April 1, 2026), and small entities with monthly sales less than or equal to PLN 10,000 (from January 1, 2027).
  • Length‑of‑Service Rules Expanded (Public sector from January 1, 2026; Private sector from  May 1, 2026) – Self‑employment, civil‑law contracts (mandate, agency), work abroad outside employment relationships, and periods of suspended business for child care now count toward length of service if documented. Employees have 24 months to submit evidence.
  • DAC8 Implementation (in force March 18, 2026) – Poland requires crypto‑asset service providers to report user and transaction data and share it with EU tax authorities. KYC and record‑keeping obligations apply; first reports are expected in 2027.

Singapore:

  • Phased Mandatory E‑Invoicing – Singapore tax authority extended its e‑invoicing mandate (InvoiceNow/Peppol) to all GST‑registered businesses with deadlines based on registration date and turnover: voluntary registrants (November 1, 2025 or April 1, 2026), new compulsory registrants and small businesses (April 1, 2028), medium businesses (April 1, 2029), larger businesses (April 1, 2030) and the largest (April 1, 2031).
  • Retirement & Re‑employment Age Raised (effective July 1, 2026) – Statutory retirement age increases from 63 to 64 and re‑employment age from 68 to 69. The Senior Employment Credit and Part‑Time Re‑Employment Grant are extended to December 2027 to support older workers. CPF contribution rates for senior workers will rise starting 2027 (1.5% for ages 55‑60; 1% for ages 60‑65).

South Korea:

  • 2026 tax reform increases corporate tax rates and tightens treaty withholding rules – Corporate tax rates increase by 1% across all brackets (10% up to KRW 200 million, 20% up to KRW 20 billion, 22% up to KRW 300 billion, and 25% beyond KRW 300 billion), with 10% local income tax continuing to apply. In case of a tax treaty benefit claim while withholding, the application must be filed with tax authorities within 2 months after year-end. Further, treaty exemptions for Korea-sourced personal service income must be supported with documentation and should be reported by the 9th day of the following month. Further, for individual taxation, childcare allowance exemption is expanded to KRW 200,000 per month per child (from January 1, 2026).
  • South Korea Raises the Personal Information Protection Act (PIPA) Penalties and Tightens Breach Reporting Rules (Effective 6 months after enactment) – Fines for serious data breaches will increase to up to 10% of revenue (from 3% of revenue) for – (i) repeated violations within 3 years, (ii) gross negligence or intentional misconduct affecting 10 million+ individuals, or (iii) failure to follow corrective orders. Data breach reporting rules will also apply to data falsification and high-risk incidents, with early notification required in some cases. The rules also bring in stronger senior management accountability, including mandatory reporting of Chief Privacy Officer appointments in certain organizations.
  • South Korea expands wage delay interest rules (effective October 23, 2025) – Employers must pay wages on time or face 20% annual interest (capped at 40%) on delayed payments for all employees (previously only applicable to retired workers), calculated from the day after the missed payday until full payment is made.

Spain:

  • Introduction of Mandatory B2B E-Invoicing Under Royal Decree (Ley 18/2022) – Spain approves a royal decree to apply mandatory B2B invoicing. It will be applicable within 12 months from the date of ministerial order for businesses with turnovers above EUR 8 million, and within 24 months for all other businesses. Businesses would be required to report invoice status (acceptance, rejection, payment) electronically within 4 days.
  • Increases solidarity contribution rates for high earners from January 2026– The revised solidarity contribution rates will be as under:
    • 1.15% on earnings between EUR 5,101.20 and EUR 5,611.32 (0.96% employer, 0.19% employee)
    • 1.25% on earnings between EUR 5,611.32 and EUR 7,651.80 (1.04% employer, 0.21% employee)
    • 1.46% on earnings above EUR 7,651.80 (1.22% employer, 0.24% employee)

Sweden:

  • Sweden Introduces Major Tax, Social Security, and Welfare Changes for 2026 – Non-resident income tax is reduced from 25% to 22.5% for 2026 (20% from 2027). The deduction for costs related to travel between home and workplace would be deductible only in case of cost exceeding SEK 15,000. Employer social security contributions for young employees aged 19–23 reduced to 20.81% on salaries up to SEK 25,000 per month, and 31.42% for others. The target age for retirement will increase from 66 to 67 years from 2027.

Thailand:

  • Thailand tightens company registered address verification (effective January 1, 2026) – The Department of Business Development (DBD) will verify company head office addresses against the national civil registration database and may reject or delay registration if details do not match. Where five or more companies share the same address, additional proof such as owner consent letters and valid lease or ownership documents will be required.
  • Thailand Tightens Foreign-Related Company Registration Proof Requirements (effective January 1, 2026) – Enhanced financial verification will apply for certain foreign-related structures (including 49% foreign–51% Thai JVs and Thai companies with foreign authorized directors). Shareholders are required to submit 3 months’ bank statements showing genuine ownership and matching investment transactions.

UAE:

  • UAE National E-Invoicing System (Pilot & Phased Mandate) – Mandatory e-invoicing to apply in phases:
    • pilot phase starts on July 1, 2026,
    • large businesses with revenue ≥ AED 50 million – from January 1, 2027,
    • smaller businesses with revenue < AED 50 million -from July 1, 2027, and
    • government entities (from October 1, 2027)

UK:

  • Significant Employment Law Changes Take Effect in 2026 – The UK sets up a Fair Work Agency from April 7, 2026, to combine multiple labour enforcement bodies and investigate breaches. Paternity and unpaid parental leave become Day 1 rights with relaxed notice rules in certain cases. Bereavement paternity leaves up to 52 weeks (or 8 weeks after child death) available from April 6, 2026. Statutory sick pay is available from day one of sickness and would amount to the lower of 80% of earnings or GBP123.25. Employers are required to keep annual leave and pay records for 6 years. Separately, Northern Ireland introduces 2 weeks paid miscarriage leave at the statutory rate or 90% of earnings (lower) as a day-one right.
  • UK HMRC Introduces Mandatory Tax Agent Registration from 17 February 2026 – HMRC mandates registration as an advisor for those who interact with HMRC on behalf of others and get paid. Registration is to be done through a new online system with a 3-month registration period beginning on August 18, 2026 (for tax-related service providers), November 18, 2026 (for payroll-related service providers), and December 18, 2026 (for financial service organizations).
  • UK: Mandatory payrolling of benefits in kind from April 2027 – The UK will require employers to report and tax most employee benefits through payroll in real time, replacing the annual P11D reporting system.

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