Global Tax News Summary: October 2025

As 2025 draws to a close, global tax developments continue to evolve across regions, creating new considerations for employers and mobile employees alike. In our latest Global Tax Chat, hosted by Grace Pursley, my colleague Pat Jurgens and I discussed the latest global mobility tax updates—from the European Union’s digital travel tracking systems to Panama’s pension reform and the U.S. “One Big Beautiful Bill.” We also explored how to prepare for the unexpected, including estate and inheritance tax planning for assignees abroad.

If you weren’t able to join us live, don’t worry—the session was recorded and is available to watch on demand here. 

Here are the key takeaways from October’s session.

European Union: New Entry and Exit Systems

The European Union is rolling out two major programs—the Entry/Exit System (EES) and the European Travel Information and Authorization System (ETIAS)—as part of its plan to digitize border management. These systems replace traditional passport stamping with electronic tracking, giving authorities precise data on travelers entering and leaving the Schengen Area. EES only applies to non-EU nationals entering European borders.

While these changes primarily affect immigration, they also have important tax implications. With enhanced tracking of travel days, EU member states can more easily determine tax residency status and social security coverage periods.

Mobility impact: Companies should ensure they’re accurately tracking employee travel and assignment data to support compliance and prevent unintentional tax residency issues.

Panama: Reforming the Public Pension System

Turning to Panama, significant changes are underway in the public pension plan. The government has eliminated the defined benefit program for individuals under 35 years old as of January 1, 2006—or for anyone who joined the system after that date.

This shift, aimed at strengthening the long-term sustainability of the pension system, may affect retirement contributions and benefits for assignees working in Panama. Employers should review their local benefits structures and ensure they align with the country’s updated framework.

United States: “One Big Beautiful Bill” and 2026 Outlook

In the United States, the newly enacted One Big Beautiful Bill (OB3) brings a mix of taxpayer-friendly changes and complex adjustments for 2025—with more to come in 2026.

Key 2025 updates include:

• Higher standard deductions: $15,750 (single) and $31,500 (joint)
• Increased child tax credit: $2,200 per child, subject to phaseouts
• Expanded SALT deduction: The State and Local Tax cap rises from $10,000 to $40,000 (with phaseouts for higher earners)

For 2026, expect further updates:

• Itemized deductions return with new phaseout formulas
• A 0.5% floor applies to charitable contribution deductions
• Non-itemizers can claim up to $1,000 (single) or $2,000 (joint) in charitable deductions

Poll: Which is scarier to you?

• Death 34%
• Taxes 33%
• Nothing scares me! 32%

Death and Taxes: Estate Planning Across Borders

In a nod to the Halloween season, we explored a topic that’s as unavoidable as it is complex: death and taxes. For globally mobile employees, estate and inheritance tax planning becomes even more intricate due to multiple jurisdictions, domiciles, and asset locations.

Key considerations include:

• Domicile vs. residence: Estate tax often applies where the individual is domiciled, but assets may also be taxed where they are located.
• Treaty coverage: Estate tax treaties can prevent double taxation but vary widely across countries.
• Family structure and citizenship: Special rules apply to U.S. citizens married to non-U.S. spouses, and to those holding assets in multiple jurisdictions.

Mobility teams should ensure their policies address estate-related contingencies—such as repatriation logistics, final-year tax filings, and inheritance exposure—to help families navigate these sensitive situations. 

Our Long-Term Assignment (LTA) Survey will explore how organizations address readiness and estate planning in their mobility programs - take part here [ADD LINK IF LTA IS LAUNCHED].

Year-End Readiness: Preparing for 2026

As 2025 winds down, it’s the perfect time for year-end tax planning and readiness reviews. We recommend mobility teams take stock of:

• Year-end Payroll reporting 
• Hypo tax updates
• Tax projections and internal audit alignment
• Assignee authorization lists

Being proactive now helps ensure a smoother transition into 2026 and supports compliant, predictable outcomes for both employers and assignees.

Final Thoughts

From the EU’s border modernization to U.S. reform and Panama’s pension overhaul, 2025 has been an eventful year for global mobility tax developments. These changes underscore the importance of readiness, compliance, and clear communication across programs.

If you missed the live session, the recording is available here where you can also watch past Global Tax Chats & all our webinars. Join us again in January 2026 for more insights into the ever-changing world of global mobility taxation.