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Key Features
Release version 8.4.0 features calculation and rate changes to reflect current tax law.
The effective dates disclosed below indicate when the changes enter into force.
Income Tax Treaties
The following income tax treaty was added:
Treaty countries
|
Effective date
|
Philippines – Sri Lanka
|
Jan 1, 2019
|
Social Security Agreements
The following social security agreement was added:
Agreement countries
|
Effective date
|
Coverage period
|
Japan – Philippines
|
Aug 1, 2018
|
96 Months
|
Country Updates
Australia
Increased the following, effective July 1, 2018:
Income Tax: The lower threshold for the 32.5% bracket by AUD 3,000 to AUD 90,000.
Social Security: The superannuation wage ceiling by AUD 5,080 to AUD 216,120.
Bangladesh
Completed annual review with no material changes.
Belgium
Income Tax:
Added the Exclude Spousal Relief? input for married employees to exclude the spousal relief for working spouses.
Corrected the enhanced income tax detail report to display the 30% bracket for the Non Working Spouse Portion. This was previously omitted.
Bulgaria
Completed annual review with no material changes.
Chile
Income Tax: Increased the tax unit to CLP 47,396, which increased the threshold for the top tax rate of 35% by CLP 89,880 to approximately CLP 5.7 million, effective May 1, 2018.
Social Security: Increased UF development unit to CLP 27,005 which increased the wage ceilings for the contributions below, effective April 26, 2018:
Social security by CLP 14,612 to approximately CLP 25 million.
Employment insurance by CLP 21,927 to approximately CLP 38 million.
France
Income Tax: Added the Use Nonresident Rates? input for inbound assignments. Select Yes to apply nonresident rates for assignments six months or greater.
Social Security: Corrected the calculation for the Actual Social Only option of Calculate Social Taxes. Previously, the social, old age and unemployment contributions were omitted from Home Country Social Tax.
Ghana
Income Tax & Social Security: Corrected the tax treatment of the following tax inputs:
Temporary Housing in Foreign Country and Temporary Living Expenses to taxable from nontaxable.
Family Airfare/Hotel En route to Foreign Location or on Repatriation to taxable from nontaxable when assignment duration is greater than 12 months.
Guinea
Income Tax: Updated the bracket thresholds and added a new top bracket. The new top rate of 20% applies to income over GNF 10 million, effective January 1, 2018.
India
Completed annual review with no material changes.
Japan
Social Security: Increased the health insurance wage ceilings as follows, effective April 1, 2018:
Regular income by JPY 2.16 million to JPY 16.68 million.
Bonus income by JPY 330,000 to JPY 5,730,000.
Malaysia
Income Tax: Updated the enhanced income tax detail report to display zero when the nonresident flat tax rate of 28% is used.
Myanmar
Completed annual review with no material changes.
Netherlands
Income Tax: Increased the 30% ruling threshold by EUR 296 to EUR 37,296.
New Zealand
Income Tax: Increased the wage ceiling for ACC Earners Levy by NZD 2,233 to NZD 126,286, effective April 1, 2018.
Pakistan
Income Tax: Updated the rates and brackets, effective July 1, 2018. The top rate is reduced from 30% to 15%, and applies to income over PKR 4.8 million. The table is reduced from 12 to 4 tiers.
Papua New Guinea
Completed annual review with no material changes.
Peru
Income Tax: Increased the tax unit to PEN 4,150, which increased the following, effective January 1, 2018:
The threshold for the top tax rate of 30% by PEN 4,500 to PEN 186,750.
The standard deduction by PEN 700 to PEN 29,050.
Philippines
Income Tax: Removed the Qualify As Executive of Special Entities? input. The reduced tax rate of 15% is no longer available to qualified employees from January 31, 2018.
Romania
Completed annual review with no material changes.
Russia
Social Security: Increased the following, effective January 1, 2018:
The threshold for pension contribution by RUB 145,000 to RUB 1,021,000.
The ceiling for social insurance contribution by RUB 60,000 to RUB 815,000.
Slovakia
Completed annual review with no material changes.
Slovenia
Completed annual review with no material changes.
Spain
Income Tax & Social Security: Corrected the outbound calculation to include employer pension contribution in the hypothetical income and social wage base. Previously, the hypothetical income and social tax amounts were understated for employees with salary less than EUR 45,014.
Sri Lanka
Completed annual review with no material changes.
Turkey
Completed annual review with no material changes.
Ukraine
Completed annual review with no material changes.
United States
Income Tax: Corrected the following:
The treatment of Employee Airfare/Hotel En route to Foreign Location and on Repatriation to nontaxable for Temporary Assignment Types with assignment duration of 12 months or less. Previously, these were only treated as nontaxable for the Short Term With Deductions Assignment Type with assignment duration of 12 months or less. This error was introduced in v.7.6.1.
The inability to generate the Cost Estimate Calculation Detail report for outbound assignments with low income and a high cost Host Housing City.
Various American States
Income Tax:
Added a deduction for moving expenses to states that do not conform with the federal taxable treatment per the Tax Cuts and Jobs Act of 2017 (TCJA). This change was made to Arizona, Minnesota, Pennsylvania, and Virginia.
Corrected state itemized deductions when state tax exceeds USD 10,000. Previously, itemized deductions were understated, resulting in an overstatement of tax. This was introduced in the v.7.6.1 update for the TCJA. This change was made to Arizona, Colorado, Georgia, Iowa, Kansas, Louisiana, Maryland, Missouri, Oregon, and Virginia.
Changes to additional states will be made in a future release as listed in Appendix B.
Georgia
Income Tax: Increased the standard deductions. The standard deduction increased by USD 2,300 to USD 4,600 for single taxpayers, effective January 1, 2018.
Illinois
Income Tax: Added a personal exemption phaseout for all filing statuses. Single taxpayers are eligible for the exemption when income is USD 250,000 or less, effective January 1, 2017.
Kansas
Income Tax: Increased the tax rates. The top rate increased by 0.5% to 5.7%, and applies to income above USD 30,000 for single taxpayers, effective January 1, 2018.
Michigan
Income Tax: Increased the personal exemption by USD 50 to USD 4,050, effective January 1, 2018.
Missouri
Income Tax: Made the following changes, effective January 1, 2018:
Decreased the top marginal rate by 0.1% to 5.9%.
Increased the bracket thresholds. The threshold for the new top rate of 5.9% increased by USD 181 to USD 9,253.
Eliminated the personal and dependent exemptions.
New Jersey
Income Tax: Added a new top bracket for all filing statuses. The new top rate of 10.75% applies to income over USD 5 million, effective January 1, 2018.
North Carolina
Income Tax: Added a USD 20,000 cap on itemized deductions.
Ohio
Income Tax: Made the following changes, effective January 1, 2018, unless indicated otherwise:
Combined the 0.495% and 0.99% brackets into one 0% bracket, applicable to taxable income up to USD 10,650.
Increased the bracket thresholds. The threshold for the top rate of 4.997% increased by USD 2,750 to USD 213,350.
Increased the personal exemptions. The exemption for income above USD 80,000 increased by USD 50 to USD 1,800, effective January 1, 2017.
Oregon
Income Tax: Increased the following, effective January 1, 2018:
Bracket thresholds. The threshold for the top rate of 9.9% remains USD 125,000 for single taxpayers.
Standard deductions. The standard deduction increased by USD 20 to USD 2,175 for single taxpayers.
Exemption credit and federal tax liability deductions.
