Editorial Team – [2025] 181 taxmann.com 847 (Article)
World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the tax happening in the world this week:
1. OECD Issues Updated FAQs on CRS and CARF
The OECD has published updated FAQs on the application of the Common Reporting Standard (CRS) and the Crypto-Asset Reporting Framework (CARF).
These FAQs are intended to promote uniform and consistent implementation of the OECD’s International Standards for Automatic Exchange of Information in Tax Matters. The questions reflected in the FAQs were raised by business representatives and government delegates, and newly added or revised FAQs are marked in yellow.
Source:
2. Israel Proposes R&D Tax Credit to Preserve Incentives under OECD Pillar Two Global Minimum Tax Rules
Israel has initiated a public consultation on draft legislation to safeguard R&D tax incentives within the global minimum tax regime. The Israeli Ministry of Finance has, with effect from 14 December 2025, invited public comments on a draft memorandum proposing the introduction of an R&D tax credit that will remain operative under the OECD/G20 Inclusive Framework’s global minimum tax rules (Pillar Two/GloBE).
Under the draft proposal, an R&D tax credit linked to qualifying domestic R&D expenditure would be available to knowledge-intensive companies, with credit rates varying by plant location category—15% for “Group A” locations and 2% for “Group B” locations. The proposal further provides for enhanced credit rates, up to 30% for Group A and 4% for Group B, for specified categories of resident companies that are members of a multinational enterprise group exceeding a prescribed threshold.
In the Pillar Two context, the OECD’s GloBE rules generally treat Qualified Refundable Tax Credits as income, rather than as a reduction of covered taxes, when calculating the Pillar Two effective tax rate. Consequently, jurisdictions have been restructuring tax incentives to align them with the QRTC framework.
Source – Public Consultation
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