Author: Europe News Desk

The Cayman Islands government announced today that it will fully implement the OECD’s Crypto-Asset Reporting Framework (CARF) commencing January 1, 2026. The move signals the definitive end of anonymity for offshore digital asset holdings in one of the world’s most popular financial hubs. The Ministry of Financial Services & Commerce confirmed that domestic legislation is being fast-tracked to meet the implementation deadline. Under the new rules, Cayman-based Virtual Asset Service Providers (VASPs)—including exchanges, custodians, and brokers—must collect granular identity and transaction data from all users. This data will be automatically exchanged with tax authorities in users’ home jurisdictions, mirroring the…

The European Union is racing to salvage the Global Minimum Tax (Pillar Two) framework following the United States’ abrupt withdrawal from the OECD agreement earlier this year. Diplomatic sources in Brussels confirmed today that member states are negotiating a controversial “side-by-side” mechanism designed to keep the EU compliant without alienating its largest trading partner. The proposed workaround involves carving out specific exemptions for U.S. multinationals operating within the EU. This “US Carve-Out” would effectively shield American heavyweights from the Undertaxed Profits Rule (UTPR) top-up taxes, provided they meet certain domestic investment thresholds. The move is a direct response to President…

As the COP30 climate conference in Belém, Brazil, nears its conclusion, the European Union is facing stiff resistance to its flagship carbon pricing policies. The EU entered the talks with ambitious climate goals, including a new Nationally Determined Contribution (NDC) to cut net greenhouse gas emissions by 66–72.5% by 2035, but global consensus remains elusive. Central to Brussels’ strategy is the promotion of carbon pricing, including the Carbon Border Adjustment Mechanism (CBAM), which targets imports of carbon-intensive goods like steel, aluminum, cement, electricity, and hydrogen. While designed to extend the “polluter pays” principle internationally, countries including China and India oppose…

The United States and Switzerland announced that they have reached a preliminary agreement to substantially reduce the steep tariffs imposed earlier by President Donald Trump, with Switzerland pledging $200 billion in U.S. investments as part of the deal. The announcement followed ministerial-level discussions in Washington, where Swiss Economy Minister Guy Parmelin sought relief from the 39% blanket tariffs introduced in August—one of the highest rates applied under the Trump administration’s renewed tariff regime. Under the new framework, the tariff rate on goods from Switzerland and Liechtenstein will be lowered to a maximum of 15%, aligning the countries with more favorable…

UK equities fell sharply on Friday as government bond yields surged, following reports that Finance Minister Rachel Reeves has abandoned plans to raise income tax in the upcoming budget. The policy reversal surprised investors who had expected tax increases to help address a projected fiscal shortfall. The FTSE 100 declined 1.1%, its steepest one-day drop since April, when global markets slumped in response to U.S. tariff developments. Despite the selloff, the index still posted a modest 0.2% gain for the week. The FTSE 250 slipped 0.8%, though it also ended the week up 0.2%. Markets React to Abandoned Tax Hike…

The Finnish Tax Administration will significantly increase monitoring of cryptocurrency transactions beginning January 2026, amid concerns that tens of thousands of taxpayers have failed to report virtual currency income. This year, around 18,000 taxpayers declared cryptocurrency sale income for 2024, generating approximately €225 million in capital gains and €68 million in paid taxes, according to the Tax Administration. However, senior advisor Juho Hasa noted that only about 10% of crypto transactions are currently reported, a pattern consistent with other Nordic countries. Estimates suggest roughly 450,000 Finns hold cryptocurrencies, with around 100,000 failing to declare income from these assets last year.…

France’s aviation industry is feeling the impact of a tripling of the “solidarity tax on airline tickets” (TSBA), with airlines, airports, and business aviation operators reporting decreased traffic, reduced profits, and lost competitiveness in European and global markets. The tax, introduced in March 2025, adds €4.77 per domestic or intra-European flight and can reach up to €120 on long-haul business-class tickets. While initially presented as a fiscal measure to benefit the state, the levy is increasingly viewed as a self-inflicted blow to France’s travel and tourism sector. According to a study by the Directorate General of Civil Aviation (DGAC), airlines…

British Finance Minister Rachel Reeves is reportedly preparing to announce a rise in personal income tax in her November 26 budget, according to The Times, as the government looks to meet fiscal targets and maintain public spending. Reeves has informed the Office for Budget Responsibility (OBR) that a tax increase is among the “major measures” being considered for the upcoming budget. While the Chancellor could still revise her plans, the official submission indicates the proposal is under serious consideration. Proposed measures The Times reports that Reeves is weighing a two pence increase in income tax alongside a two pence reduction…

Britain’s Chancellor of the Exchequer, Rachel Reeves, signaled on Thursday that her government is exploring reforms to business property taxes aimed at helping smaller firms expand, as the country braces for its annual budget on November 26. Reeves emphasized the need to ease sharp increases in property taxes—known as business rates—that can create financial hurdles when small companies grow. “Our economy isn’t broken, but it does feel stuck,” Reeves said alongside a finance ministry report examining business property taxation.“Tax reforms such as tackling cliff-edges in business rates and making reliefs fairer are vital to driving growth.” The proposed measures could…

The Kosovo Tax Administration (TAK) has reported steady revenue growth, collecting a total of €713.3 million in the period from January to August 2025. This represents an increase of €71.2 million compared to the same period in 2024. Officials say the results highlight a stable upward trend in tax revenues, reflecting TAK’s commitment to effective law enforcement, strengthened tax administration, and the growing awareness among taxpayers about meeting their obligations. The revenue increase is particularly important for Kosovo’s fiscal stability, providing more resources for public investment, economic development, and services for citizens. TAK emphasizes that this success is the result…