🔹 Digest June 2026

June brings new regulatory changes, tax reforms, and compliance updates that are already impacting international business and corporate governance. Below are the key developments shaping global trends in 2026.

1. The United Kingdom Strengthens Corporate Criminal Liability

The United Kingdom is expanding the grounds for holding companies criminally liable. On 29 April 2026, the Crime and Policing Act 2026 received Royal Assent, and the new rules will take effect from 29 June 2026.

Key developments:

• from 29 June 2026, the “senior manager” criterion will apply to all criminal offences,

not only economic crimes;

• individuals who effectively make key decisions or control a significant part of the business may fall within the scope of liability;

• the risks of substantial fines, asset confiscation, director disqualification, and business restrictions are increasing.

2. Arkansas, USA, Cuts Income Tax Again

The State of Arkansas is reducing its key tax rates for the fourth time in the last four years. On 6 May 2026, Governor Sarah Huckabee Sanders signed HB 1001 and SB 1 into law.

Key changes:

• the top personal income tax (PIT) rate is reduced from 3.9% to 3.7%;

• the corporate income tax (CIT) rate is reduced from 4.3% to 4.1%.

For individuals, the changes apply retroactively from 1 January 2026, meaning taxpayers will effectively benefit from tax relief for the entire current year. For corporations, the new rate will take effect from 1 January 2027.

Arkansas income tax rates are now at their lowest level since the introduction of income tax in 1929.

3. Cyprus Ends the Transitional 5% VAT Regime for Real Estate

Cyprus has introduced amendments to the Eighth Schedule of the VAT Law (95(I)/2000) pursuant to Regulatory Administrative Act (RAA) 103/2026, while the Fifth Schedule of the VAT Law has been amended under RAA 102/2026.

The amendments will enter into force on 1 September 2026 and introduce a revised VAT system for real estate, shifting from time-based rules to use-based rules.

The new system introduces two key concepts:

• “first occupation” – VAT applies to buildings supplied before first occupation;

• “first use” – VAT exemption applies after systematic use for at least 18 months.

The reduced 5% VAT rate for primary residences remains in place, although eligibility will now depend on the updated definitions of “first occupation” and “first use”.

The transitional regime ends on 15 June 2026, after which the updated framework will apply in full.

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4. The UAE Postpones the Deadline for Appointing an Accredited E-Invoicing Provider

The UAE Ministry of Finance announced the extension of the deadline for appointing an Accredited Service Provider (ASP) under the e-invoicing system from 31 July to 30 October 2026.

Reasons for the extension and current market status:

• the decision was made following an assessment of market readiness and business feedback;

• 32 providers have already been accredited, while several others are in the final stages of accreditation;

• a white-label framework has been introduced, allowing UAE companies to partner with international providers to transfer technical expertise and develop localised solutions.

Key dates remain unchanged:

• from 1 July 2026 – launch of the pilot phase and voluntary onboarding;

• 30 October 2026 – updated deadline for appointing an ASP (for companies with annual revenue exceeding AED 50 million);

• by 1 January 2027 – mandatory full implementation for companies with annual revenue exceeding AED 50 million;

• by 1 July 2027 – mandatory implementation for smaller businesses and government entities.

5. Hong Kong Amends the Law on the Implementation of the Crypto-Asset Reporting Framework

The Hong Kong Inland Revenue Department announced that the Inland Revenue (Amendment) Bill 2026 concerning the Crypto-Asset Reporting Framework and the Amended Common Reporting Standard will be submitted to the Legislative Council for approval on 3 June 2026.

Crypto-asset service providers with reporting obligations connected to Hong Kong will be required to register with the Inland Revenue Department (IRD) and comply with the following requirements:

• due diligence;

• filing tax returns;

• record keeping.

Depending on the implementation progress in relevant jurisdictions, Hong Kong plans to begin the automatic exchange of tax information on crypto-asset transactions from 2028 and introduce the amended CRS.

To support the industry in adapting to the new requirements, the IRD will publish guidance, provide technical support, and respond to industry inquiries in a timely manner.

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