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Key Features
Release version 9.3.0 features calculation and rate changes to reflect current tax law.
The effective dates disclosed below indicate when the changes enter into force.
Product Enhancement
Cost Estimate Calculation Details Report
Enhanced the report by adding the following:
Hypo Compensation Details listing the input and taxable values of base compensation to derive hypothetical tax.
Income tax tables and social security contributions for Hong Kong, Poland, and Spain.
American state and Canadian province labels to the sub-authority details.
Income Tax Treaties
The following income tax treaties were added:
Treaty countries
|
Effective date
|
Ecuador – Russia
Hong Kong – India
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Jan 1, 2019
Apr 1, 2019
|
Social Security Agreements
The following social security agreements were added:
Agreement countries
|
Effective date
|
Coverage period
|
China – Luxembourg
|
May 1, 2019
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60 Months
|
Country Updates
Argentina
Social Security: Increased the employee wage ceiling by ARS 260,589 to approximately ARS 1.5 million, effective March 1, 2019.
Australia
Social Security: Increased the superannuation wage ceiling by AUD 4,960 to AUD 221,080, effective July 1, 2019.
Azerbaijan
Social Security: Updated the employee and employer contribution rates to 10% and 15%, respectively; effective January 1, 2019 for employees working outside the oil and gas industry. Previously, the rates were 3% for employees and 22% for employers.
Brazil
Social Security: Increased the employee wage ceiling by BRL 2,517 to BRL 75,913, effective January 1, 2019.
Canada
Prince Edward Island
Income Tax: Increased the personal, spousal, and dependent amounts, effective January 1, 2019. The personal amount increased by CAD 840 to CAD 9,160 and the spousal and dependent amounts increased by CAD 713 to CAD 7,780.
Chile
Income Tax: Increased the tax unit to CLP 48,595, which increased the threshold for the top tax rate of 35% by approximately CLP 1.7 million to CLP 69.6 million, effective April 1, 2019.
Social Security: Increased the UF development unit to CLP 27,602, which increased the wage ceilings for the contributions below, effective April 17, 2019:
Employment insurance by CLP 70,244 to approximately CLP 39 million.
Other contributions by CLP 46,809 to approximately CLP 26 million.
Colombia
Income Tax: Replaced the monthly withholding table with the annual tax table. The monthly table incorporates deductions for basic allowance and health contributions which are also deducted to derive taxable income; thus resulting in an understatement of tax.
Costa Rica
Completed annual review with no material changes.
Denmark
Income Tax: Corrected the grossup only calculation when the inbound expatriate concession applies to consistently exclude the employment allowance and double housing deduction. Previously, the grossup tax costs were overstated.
Dominican Republic
Completed annual review with no material changes.
Ecuador
Income Tax: Increased the personal deduction by USD 52 to USD 14,703, effective January 1, 2019.
El Salvador
Completed annual review with no material changes.
France
Income Tax: Corrected the inbound calculation as follows:
The tax calculation for nonresidents by adding a minimum tax of 30%, applicable to income over EUR 70,566, effective January 1, 2019. Previously, income above EUR 43,047 was taxed at 20%.
The deduction for foreign social security in a partial year for employees who break home country residency. Previously, the annual amount was deducted, resulting in an understatement of tax.
Guatemala
Completed annual review with no material changes.
Hong Kong
Income Tax: Corrected the income exemption for grossup only when assignment duration is two months or less. Previously, the exemption was not consistently applied, resulting in an overstatement of tax.
Israel
Increased the following, effective January 1, 2019:
Income Tax:
Tax bracket thresholds. The threshold for the top rate of 50% increased by ILS 7,780 to ILS 649,560.
Credit point value by ILS 36 to ILS 2,616.
Social Security: Wage ceiling by ILS 6,240 to ILS 526,680.
Italy
Social Security: Increased the wage ceiling by EUR 2,219 to EUR 102,543, effective January 1, 2019.
Ivory Coast
Income Tax: Corrected the national tax calculation by decreasing the tax rates and adding deductions for the national contribution, salary tax, and 15% exclusion. The top rate of 37.5% applies to income over XOF 10.1 million. Previously, a top rate of 60% applied to income over XOF 7.5 million, resulting in an overstatement of tax.
Kenya
Social Security: Decreased the housing contribution rate, effective January 1, 2019.
Mongolia
Completed annual review with no material changes.
Netherlands
Income Tax: Increased the minimum salary to qualify for the 30% ruling concession by EUR 720 to EUR 54,000, effective January 1, 2019.
Norway
Income Tax: Updated employee and employer voluntary pension contributions to be deductible and nontaxable, respectively, for inbound employees from EEA countries.
Pakistan
Social Security: Increased the employer wage ceiling by PKR 60,000 to PKR 180,000.
Panama
Completed annual review with no material changes.
Peru
Income Tax: Increased the tax unit to PEN 4,200, which increased the following, effective January 1, 2019:
Tax bracket thresholds. The threshold for the top tax rate of 30% increased by PEN 2,250 to PEN 189,000.
Standard deduction by PEN 350 to PEN 29,400.
Switzerland
Social Security: Increased the Pillar II pension contribution thresholds, effective January 1, 2019. The minimum and maximum thresholds increased by CHF 180 to CHF 21,330 and CHF 720 to CHF 85,320, respectively.
Trinidad and Tobago
Completed annual review with no material changes.
United Kingdom
Income Tax: Corrected the calculation when using the Tax Costs Inputs: Hypothetical Social Tax line item and the host country does not have a social security agreement with the UK. Previously, the hypothetical social tax input value was omitted from income, resulting in an overstatement of tax.
United States
Income Tax: Updated the host housing expenses limitations for high cost locations, effective January 1, 2019. If a location is not selected, the foreign housing exclusion will be calculated using the standard limitation amount of USD 31,770.
Various American States
Income Tax: Enhanced the state tax calculation for inbound employees with assignment duration of six months or less, when federal tax is exempted by income tax treaty. The impacted states are Alabama, Arkansas, California, Connecticut, Hawaii, Kansas, Kentucky, Maryland, Mississippi, Montana, New Jersey, North Dakota, and Pennsylvania.
Alabama
Income Tax: Increased the standard deduction phaseout thresholds, effective January 1, 2019. The threshold increased by USD 3,000 to USD 23,000 for single taxpayers.
Arizona
Income Tax: Increased the following, effective January 1, 2019. Amounts shown apply to single taxpayers:
Tax bracket thresholds. The threshold for the top rate of 4.5% increased by USD 3,837 to USD 158,996.
Standard deductions. The deduction increased by USD 129 to USD 5,312.
Arkansas
Income Tax: Increased the tax bracket thresholds and decreased rates, effective January 1, 2019. The top rate remains 6.9% and applies to income above USD 79,300.
District of Columbia
Income Tax: Made the following changes to conform to federal amounts, effective January 1, 2018:
Increased the standard deductions.
Eliminated the personal and dependent exemptions.
Iowa
Income Tax: Made the following changes, effective January 1, 2019:
Increased the tax bracket thresholds and decreased the rates. The new top rate of 8.5% applies to income above USD 73,710.
Increased the standard deductions. The deduction increased by USD 50 to USD 2,080 for single taxpayers.
Maine
Income Tax: Increased the following, effective January 1, 2019:
Tax bracket thresholds. The threshold for the top rate of 7.2% increased by USD 950 to USD 51,700.
Personal exemption by USD 50 to USD 4,200.
Deduction and exemption phaseout thresholds.
Nebraska
Income Tax: Increased the following, effective January 1, 2019, unless indicated otherwise. Amounts shown apply to single taxpayers:
Tax bracket thresholds. The threshold for the top rate of 6.8% increased by USD 740 to USD 31,160.
Eliminated the additional tax of up to 0.4% applicable to income over USD 266,700, effective January 1, 2018.
Standard deductions. The deduction increased by USD 150 to USD 6,900.
Personal and dependent exemption credits.
North Dakota
Income Tax: Increased the tax bracket thresholds, effective January 1, 2019. The threshold for the top rate of 2.9% increased by USD 8,250 to USD 433,200 for single taxpayers.
Ohio
Income Tax: Removed the Months in Host condition to calculate outbound state tax. Select Yes to Returning to State Post-assignment? to include the tax and No to exclude. Previously, when Yes was selected for Returning to State Post-assignment?, state tax was excluded when Months in Host exceeded five.
Rhode Island
Income Tax: Increased the following, effective January 1, 2019:
Tax bracket thresholds. The threshold for the top rate of 6% increased by USD 3,450 to USD 145,600.
Standard deductions. The deduction increased by USD 225 to USD 8,750 for single taxpayers.
Exemption, phaseout threshold, and phaseout step.
South Carolina
Income Tax: Increased the tax bracket thresholds, effective January 1, 2019. The threshold for the top rate of 7% increased by USD 300 to USD 15,160.
Utah
Income Tax: Increased the tax credit phaseout thresholds, effective January 1, 2019. The threshold increased by USD 278 to USD 14,256 for single taxpayers.
Wisconsin
Income Tax: Increased the following, effective January 1, 2019. Amounts shown apply to single taxpayers:
Tax bracket thresholds. The threshold for the top rate of 7.7% increased by USD 6,800 to USD 258,950.
Standard deductions and phaseout thresholds. The deduction increased by USD 280 to USD 10,860 and the threshold by USD 411 to USD 15,660.
Venezuela
Income Tax: Increased the tax unit to VES 50, which increased the threshold for the top tax rate of 34% by VES 198,000 to VES 300,000, effective March 7, 2019.
Social Security: Increased the social security and unemployment insurance wage ceilings by approximately VES 1.4 million to VES 2.6 million and VES 2.9 million to VES 5.2 million, respectively, effective April 16, 2019.
Vietnam
Income Tax: Updated total employee and employer voluntary pension contributions to be deductible up to VND 12 million.
Social Security: Corrected the social security proration for grossup only in partial years. The previous proration was not consistently applied, resulting in an understatement of tax.
Zambia
Increased the following, effective January 1, 2018:
Income Tax: The fringe benefit maximum for Auto Lease by ZMW 20,000 to ZMW 40,000.
Social Security: Wage ceiling by ZMW 24,093 to ZMW 238,800.
