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Key Features
Release version 9.5.0 features calculation and rate changes to reflect current tax law.
The effective dates disclosed below indicate when the changes enter into force.
Product Enhancement
Switzerland Geneva Withholding Tax
Added the ability to calculate inbound assignment costs using the tax at source method for Geneva.
Select Yes from the Use Withholding Table? input on the Geneva host tax estimator to utilize the withholding table which includes federal, cantonal and communal amounts. Effective rates for single, married with nonworking spouse, and single parents are supported.
The tax at source method for other cantons will be rolled out in future releases.
Social Security Agreements
The following social security agreements were added:
Agreement countries
|
Effective date
|
Coverage period
|
Brazil – Switzerland
|
October 1, 2019
|
60 Months
|
China – Japan
|
September 1, 2019
|
60 Months
|
Luxembourg – South Korea
|
September 1, 2019
|
60 Months
|
Country Updates
Argentina
Income Tax: Increased the following, effective January 1, 2019:
Earned income allowance by ARS 82,415 to ARS 464,490.
Basic allowance by ARS 17,170 to ARS 103,019.
Social Security: Increased the employee wage ceiling by ARS 371,337 to approximately ARS 1.9 million, effective September 1, 2019.
Australia
Other Employer Costs: Made the following changes for fringe benefits tax:
Updated the following allowances to be nontaxable for temporary assignment types, unless indicated otherwise:
Primary or Secondary School Costs Host Country
Dependent Home Study Costs
Education Transportation Costs
Family Correspondence Courses Host Country
Temporary Housing in Home Country, for all assignments types
Updated the Living Away From Home Allowance exemption to calculate for the first 12 months for all temporary assignment types. Previously, it was only calculated for temporary assignment types with duration of less than 12 months.
Austria
Completed annual review with no material changes.
Bangladesh
Income Tax: Limited the employee pension contribution available for credit to be the lesser of BDT 15 million or 30% of assignment income. Previously, the credit was uncapped resulting in a potential understatement of tax.
Belgium
Income Tax: Removed the taxable maximum of EUR 1,637 for Auto Lease Host Country. The entered value is treated as taxable.
Canada
Social Security: Enhanced the actual employer contribution output to the Cost Estimate (Years 1-6) report for equalized assignments in partial periods. The output value is calculated by reducing the total annual contribution by the pre-assignment portion. Previously, the value was the prorated annual amount.
Czech Republic
Social Security: Increased the social security wage ceiling by CZK 130,560 to approximately CZK 1.6 million, effective January 1, 2019.
Denmark
Income Tax: Changed the inbound 27% tax scheme to apply when base compensation is more than DKK 66,600 per month. Previously, assignment income was used as the criteria. As a result, the concession may be calculated for assignments with base compensation below the threshold and understating total costs.
Egypt
Social Security: Increased the following wage ceilings:
Base salary by EGP 3,600 to EGP 20,040, effective July 1, 2019.
Other income by EGP 14,880 to EGP 48,480, effective January 1, 2019.
Finland
Income Tax:
Changed the following allowances to be nontaxable:
Employee and Family Passports, Visas and Work Permit Costs
Employee and Family Airfare/Hotel en route to Foreign Location and on Repatriation
Transportation of Household Goods to Foreign Location and on Repatriation
Shipment of Pets
Meals en route
Temporary Housing in Foreign and Home Country
Temporary Living Expenses
Changed Primary or Secondary School Costs Host Country to be taxable for inbound assignments.
France
Income Tax: Corrected the outbound expatriate concession cap to be 40% of base compensation for temporary assignment types. Previously, the cap was 40% of assignment income when foreign tax is not calculated, resulting in a potential understatement of tax.
Germany
Completed annual review with no material changes.
Greece
Social Security: Increased the wage ceiling by EUR 8,949 to EUR 91,000, effective February 1, 2019.
Hungary
Income Tax:
Removed the Elect Preferential Housing input from the host tax estimator because this concession is no longer available, effective January 1, 2018. As a result, Housing Costs Host Country and Temporary Housing in Foreign Country are taxable. The updated behavior will also apply to recalculations.
Increased the child deduction for employees with two dependents by HUF 0.8 million to HUF 2.4 million for each dependent.
India
Completed annual review with no material changes.
Italy
Completed annual review with no material changes.
Luxembourg
Income Tax: Updated the cap for the recurring costs portion of the expatriate concession to 30% of base salary up to EUR 50,000 if single or EUR 80,000 if married. Recurring costs include host housing costs, furniture rental, utilities, and employee/family home leave.
Social Security: Increased the wage ceiling by EUR 1,119 to EUR 125,385, effective January 1, 2019.
Mexico
Other Employer Costs: Added the Calculate Payroll Tax? input to the host tax estimator to provide the ability to calculate payroll tax at 3% of assignment income.
Netherlands
Completed annual review with no material changes.
Norway
Completed annual review with no material changes.
Papua New Guinea
Income Tax: Increased the following, effective January 1, 2019:
Thresholds for the two lowest brackets, 0% and 22%, by PGK 2,500 and PGK 2,000 to PGK 12,500 and PGK 20,000, respectively.
Threshold for the lowest nonresident bracket of 0% by PGK 2,000 to PGK 20,000.
Social Security: Changed the automatic social security calculation for inbound assignments to compute employee and employer contributions because it is required for inbound employees unless conditions are met.
Poland
Completed annual review with no material changes.
Portugal
Completed annual review with no material changes.
Slovenia
Income Tax: Changed the following allowances to be nontaxable:
Employee and Family Language and Cultural Training
Employee and Family Pre-Assignment Medical Exam and Immunization
Employee and Family Airfare/Hotel en route to Foreign Location and on Repatriation
Per Diems
South Africa
Income Tax:
Added the foreign income exemption for outbound assignments. When assignment duration is more than 6 months, foreign earned income is excluded. Beginning tax year 2020, the exemption is capped at ZAR 1 million.
Increased the primary rebate by ZAR 153 to ZAR 14,220, effective March 1, 2019.
Sri Lanka
Income Tax: Removed the taxable assessed value of LKR 15,000 per month for Host Housing Costs. The entered value is treated as taxable.
Sweden
Increased the following, effective January 1, 2019:
Income Tax:
Employment income credit amounts and thresholds. The maximum credit increased by SEK 706 to SEK 27,706 and the phaseout threshold increased by SEK 13,541 to SEK 629,611.
Personal allowance amounts and thresholds. The maximum allowance increased by SEK 770 to SEK 35,805 and the phaseout threshold increased by SEK 3,110 to SEK 144,615.
Social Security: Employee wage ceiling by SEK 15,333 to SEK 519,708.
Turkey
Social Security: Increased the wage ceiling by TRY 47,601 to TRY 230,256, effective January 1, 2019.
United States
Arizona
Income Tax: Added a USD 100 credit per child under 17 and a USD 25 credit per other dependent, effective January 1, 2019. The credits begin to phase out when income exceeds USD 200,000 for single taxpayers.
Ohio
Income Tax: Updated the tax table by removing the two lowest brackets and decreasing rates. The top rate decreased by 0.2% to 4.8%.
Vietnam
Social Security: Increased the following wage ceilings, effective July 1, 2019:
Unemployment insurance by VND 48 million to approximately VND 1 billion.
Health and social insurance by VND 24 million to VND 357.6 million.
