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Key Features
Release version 8.2.0 features an enhancement to the Equus Tax Engine, as well as calculation and rate changes to reflect current tax law.
The effective dates disclosed below indicate when the changes enter into force.
Product Enhancement
Automatic Calculate Social Tax
Changed the social security agreement evaluation criteria to use Assignment Type; thus extended this automatic social tax determination feature for all tax calculation methods. Previously, only the Equalization method considered social security agreements.
Cost estimates with temporary Assignment Types, i.e. Long Term, Short Term with Deductions and Short Term without Deductions, will calculate home country social tax if assignment duration does not exceed the applicable detachment period of the agreement. Calculation of home and host country social tax for Permanent Assignment Type will be determined based on home country tax resident status and whether the host country requires mandatory contributions. More detailed explanation of these evaluation criteria are outlined in the User Manual Equus Tax Engine available in the Help Center under the home tab of AssignmentPro.
With this enhancement, it is important to calculate cost estimates using the appropriate Assignment Type. This input is set on the cost estimate template in the Calculation Details and Defaults section. Use the Equus – Cost Estimate Template Details and Default user report, available from the System Reports menu to review the Assignment Type selection for all cost estimate templates.
Income Tax Treaties
The following income tax treaties were added:
Treaty countries
|
Effective date
|
Azerbaijan – Denmark
Azerbaijan – Israel
Ireland – Kazakhstan
|
Jan 1, 2018
Jan 1, 2018
Jan 1, 2018
|
Social Security Agreements
The following social security agreement was added:
Agreement countries
|
Effective date
|
Coverage period
|
Brazil – Luxembourg
|
Apr 1, 2018
|
36 Months
|
Country Updates
Argentina
Income Tax: Increased the following, effective January 1, 2018:
Tax bracket thresholds. The threshold for the top rate of 35% increased by ARS 92,064 to ARS 412,064.
Personal, spouse, child, and employee allowances. The personal allowance increased by ARS 14,951 to ARS 66,918.
Belgium
Income Tax: Increased the following, effective January 1, 2018:
Tax bracket thresholds. The threshold for the top rate of 50% increased by EUR 830 to EUR 39,660.
Standard business deduction; and personal, basic, and dependent exemptions.
Canada
Alberta
Income Tax: Increased the following, effective January 1, 2018:
Tax bracket thresholds. The threshold for the top rate of 15% increased by CAD 3,647 to CAD 307,547.
Personal, spousal, and dependent amounts. The amounts increased by CAD 225 to CAD 18,915.
British Columbia
Income Tax: Made the following changes, effective January 1, 2018:
Increased the tax bracket thresholds and added a new top bracket. The new top rate of 16.8% applies to income over CAD 150,000.
Increased the personal, spousal, and dependent amounts. The personal amount increased by CAD 204 to CAD 10,412, and the spousal and dependent amounts increased by CAD 1,067 to CAD 9,807.
New Brunswick
Income Tax: Increased the following, effective January 1, 2018:
Tax bracket thresholds. The threshold for the top rate of 20.3% increased by CAD 4,382 to CAD 154,382.
Personal, spousal, and dependent amounts. The personal amount increased by CAD 285 to CAD 10,043, and the spousal and dependent amounts increased by CAD 266 to CAD 9,381.
Newfoundland and Labrador
Income Tax: Increased the following, effective January 1, 2018:
Tax bracket thresholds. The threshold for the top rate of 18.3% increased by CAD 8,890 to CAD 184,590.
Personal, spousal, and dependent amounts. The personal amount increased by CAD 445 to CAD 9,247, and the spousal and dependent amounts increased by CAD 400 to CAD 8,312.
Ontario
Income Tax: Increased the following, effective January 1, 2018:
Tax bracket thresholds. The threshold for the top rate of 13.16% remains CAD 220,000.
Surtax bracket thresholds. The threshold for the top rate of 36% increased by CAD 105 to CAD 5,936.
Personal, spousal, and dependent amounts. The personal amount increased by CAD 183 to CAD 10,354, and the spousal and dependent amounts increased by CAD 171 to CAD 9,671.
Quebec
Income Tax: Made the following changes, effective January 1, 2018:
Increased the tax bracket thresholds. The threshold for the top rate of 25.75% increased by CAD 850 to CAD 104,765.
Decreased the credit rate by 1% to 15%.
Increased the personal and spousal credit amounts by CAD 122 to CAD 15,012.
Increased the maximum deduction for employment income by CAD 10 to CAD 1,150.
Chile
Social Security: Increased the UF development unit and corresponding caps, which increased the wage ceiling for social security by about CLP 1.1 million to CLP 25.2 million, and unemployment insurance by about CLP 1.7 million to CLP 37.8 million, effective January 1, 2018.
China
Completed annual review with no material changes.
Ecuador
Income Tax: Decreased bracket thresholds. The threshold for the top rate of 35% decreased by USD 250 to USD 114,890, effective January 1, 2018.
Egypt
Social Security: Increased the wage ceiling on base salary and on other income by EGP 3,000 to EGP 16,440 and by EGP 8,280 to EGP 33,600, respectively, effective January 1, 2018.
Finland
Social Security: Corrected the wage base for outbound assignments to include Base Salary. Assignment income was previously used, resulting in a potential overstatement of tax.
France
Social Security: Corrected the calculation for inbound employees with assignment duration less than six months by including contributions for health insurance and excluding CSG and CRDS. Previously, health insurance calculated, whereas CSG and CRDS were not calculated, resulting in a potential understatement of tax.
Germany
Income Tax: Changed the inbound calculation in partial periods to use an effective rate based on annual income. Previously, the tax rate was based on prorated income, resulting in an understatement of tax.
Ghana
Income Tax: Increased bracket thresholds. The threshold for the top rate of 25% increased by GHS 12 to GHS 38,892, effective January 1, 2018.
Hong Kong
Completed annual review with no material changes.
Indonesia
Completed annual review with no material changes.
Ireland
Income Tax & Social Security: Changed the wage base for Universal Social Charge and Pay Related Social Insurance to exclude employer pension contributions for all outbound assignments and inbound assignments originating within the EEA.
Indonesia
Completed annual review with no material changes.
Japan
Completed annual review with no material changes.
Kazakhstan
Made the following changes, effective January 1, 2018:
Income Tax: Increased the minimum monthly salary, which increased the maximum basic allowance by KZT 45,900 to KZT 339,408.
Social Security:
Increased the employee pension and employer social security wage ceilings by KZT 3.4 million to KZT 25.5 million and by KZT 459,000 to KZT 3.4 million, respectively.
Decreased the employer social tax contribution rate by 1.5% to 9.5%.
Malaysia
Social Security: Increased the Employees Provident Fund rate by 3% to 11%, effective January 1, 2018.
Mongolia
Income Tax: Added a nonresident rate of 20% for inbound assignments with assignment duration of six months or less, effective January 1, 2018.
Myanmar
Income Tax: Removed the nonresident rate of 35% for inbound assignments with assignment duration of six months or less, effective April 1, 2018. Inbound estimates will now be calculated using the progressive tax table.
Pakistan
Completed annual review with no material changes.
Peru
Social Security: Replaced the one-thirteenth wage base reduction with two-fourteenths to reflect the assumption that Base Salary includes 13th and 14th month bonuses which are exempted from social security contributions. Previously, only the 13th month bonus was excluded, resulting in a potential overstatement of tax.
Philippines
Completed annual review with no material changes.
Poland
Social Security: Increased the pension and disability wage ceilings by PLN 5,400 to PLN 133,290, effective January 1, 2018.
Puerto Rico
Social Security: Decreased the OASDI wage ceiling by USD 300 to USD 128,400, effective January 1, 2018.
Singapore
Completed annual review with no material changes.
Slovakia
Increased the following, effective January 1, 2018:
Income Tax: The threshold for the top rate of 25% by EUR 246 to EUR 35,268.
Social Security: The wage ceiling by EUR 2,436 to EUR 76,608.
South Africa
Made the following changes, effective March 1, 2018:
Income Tax: Increased the following:
Thresholds for the three brackets below income of SAR 423,300. The threshold for the top rate of 45% remains at SAR 1.5 million.
Primary rebate by SAR 432 to SAR 14,067.
Social Security: Updated automatic logic to calculate host social tax as contributions are now required for inbound employees.
South Korea
Social Security: Increased the pension wage ceiling by KRW 3.36 million to KRW 53.88 million, effective July 1, 2017.
Taiwan
Income Tax: Made the following changes, effective January 1, 2018:
Removed the top tax rate of 45%. The threshold for the new top rate of 40% applies to income above TWD 4.53 million.
Increased the standard deductions. The deduction increased by TWD 30,000 to TWD 120,000 for single taxpayers.
Increased the salary deduction by TWD 72,000 to TWD 200,000.
Thailand
Completed annual review with no material changes.
United Kingdom
Increased the following, effective April 6, 2018, unless indicated otherwise:
Income Tax:
Added the deduction for personal allowance for inbound employees from EEA countries when assignment duration is six months or less. This deduction was incorrectly excluded since version v.4.2.
Basic tax bracket threshold by GBP 1,000 to GBP 34,500. The top rate of 45% for income above GBP 150,000 remains unchanged.
Personal allowance by GBP 350 to GBP 11,850.
Social Security:
Employee and employer upper threshold by GBP 1,324 to GBP 46,356.
Employee and employer primary and secondary thresholds by GBP 1,200 to GBP 8,424.
United States
Income Tax:
Enhanced itemized deductions to calculate property tax as 20% of Other Deductions. The USD 10,000 cap on state and local taxes applies to state and local income tax and property tax. When the cap was added in v.7.6.1, it only applied to state and local income tax.
Added the Exclude Child Tax Credit? input with a default setting of No. Effective January 1, 2018, qualified dependents must have a social security number to be eligible for this credit. Previously, only an ITIN was required. Select Yes to exclude the USD 2,000 credit for each child under 17.
Illinois
Income Tax: Decreased the exemption by USD 175 to USD 2,000, effective January 1, 2018.
Massachusetts
Income Tax: Corrected the foreign tax credit for outbound assignments to calculate for tax paid to Canada and Canadian provinces only. Previously, a credit was provided for Swiss cantonal tax, resulting in a potential understatement of tax.
Minnesota
Income Tax: Increased the bracket thresholds, effective January 1, 2018. The threshold for the top rate of 9.85% increased by USD 3,110 to USD 160,020 for single taxpayers.
New York
Income Tax: Made the following changes, effective January 1, 2018:
Decreased the 5th and 6th tax rates by 0.12% to 6.33% and by 0.08% to 6.57%, respectively. These rates apply to income between USD 21,400 and USD 215,400 for single taxpayers.
Updated the tax computation worksheet amounts.
Vietnam
Social Security: Updated the following, effective January 1, 2018, unless otherwise stated:
Added the social insurance contribution for inbound assignments; previously only contributions to health insurance were required.
Increased the unemployment insurance wage ceiling by VND 55.2 million to VND 955.2 million.
Decreased the employer social insurance contribution rate by 0.5% to 17.5%.
Increased the health insurance and social insurance wage ceiling by VND 43.2 million to VND 333.6 million, effective July 1, 2018.
