US-G7 Reach Pillar 2 Tax Deal Excluding US Firms

The 2025 tax filing season has officially begun, with the South African Revenue Service (SARS) warning taxpayers about new scams targeting them during this period. SARS Commissioner Edward Kieswetter and tax expert Pieter Faber have urged individuals to avoid interacting with messages from unknown sources and not to click on suspicious links, as fraudsters tend to exploit fear and confidence to deceive taxpayers. Meanwhile, significant international tax developments include the US Treasury Secretary Bessent's announcement of a deal with G7 countries exempting US companies from OECD Pillar 2 taxes, with the US Senate removing the controversial 'revenge tax' from legislation following the agreement. Canada plans to rescind its digital services tax (DST) in anticipation of a trade deal with the US, although the UK and France have not indicated a similar move. In India, high courts have ruled on tax matters such as sales tax incentives being capital receipts and payments to AWS for cloud services not qualifying as taxable royalties, clarifying important aspects of tax liabilities. These varied developments reflect ongoing efforts to navigate complex tax regulations both domestically and internationally.