*Version Numbering: The version number pattern has changed this release to the two digit year of the release. The last major release was v.9.6.0 and this major release is v.20.1.0. There were no major releases between these two versions.
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Key Features
Release version 20.1.0 features calculation and rate changes to reflect current tax law.
The effective dates disclosed below indicate when the changes enter into force.
Product Enhancement
Compensation Calculation Details Report
Added the Hypo Compensation Details listing the base compensation inputs and taxable values. This report was added to the Cost Estimate module in Equus Engine v.9.3.0. The report will be available for Compensation Calculation after upgrade to AssignmentPro v.20.1.0.
Income Tax Treaties
The following income tax treaties were added:
Treaty countries
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Effective date
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Australia – Israel
Colombia – United Kingdom
Ecuador – Japan
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January 1, 2020
January 1, 2020
January 1, 2020
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Country Updates
Australia
Other Employer Costs: Reclassified Employer Paid Medical and Dental as a fringe benefit subject to fringe benefit tax, instead of income tax and social security.
Brazil
Social Security: Increased the employee contribution rate by 3% to 14%, effective March 1, 2020.
Canada
Income Tax: Increased the following, effective January 1, 2020:
Tax bracket thresholds. The threshold for the top rate of 33% increased by CAD 3,997 to CAD 214,368.
Personal and spousal amounts by CAD 229 to CAD 12,298.
Maximum pension deduction by CAD 730 to CAD 27,230.
British Columbia
Income Tax: Increased the following, effective January 1, 2020:
Tax bracket thresholds. The threshold for the top rate of 16.8% increased by CAD 3,848 to CAD 157,748.
Personal and dependent amounts by CAD 267 to CAD 10,949 and CAD 252 to CAD 10,314, respectively.
Ontario
Income Tax: Increased the following, effective January 1, 2020:
Two lowest tax bracket thresholds. The threshold for the top rate of 13.2% remains CAD 220,000.
Surtax bracket thresholds. The threshold for the top rate of 36% increased by CAD 115 to CAD 6,182.
Personal, spousal, and dependent amounts. The personal amount increased by CAD 201 to CAD 10,783.
Quebec
Increased the following, effective January 1, 2020:
Income Tax:
Tax bracket thresholds. The threshold for the top rate of 25.8% increased by CAD 1,835 to CAD 108,390.
Personal amount by CAD 263 to CAD 15,532.
Maximum deduction for employment income by CAD 20 to CAD 1,190.
Social Security: Parental Insurance Plan wage ceiling by CAD 2,000 to CAD 78,500.
Chile
Increased the following:
Income Tax: Tax unit (UTM) to CLP 49,673, effective January 1, 2020, which increased the threshold for the top tax rate of 35% by CLP 1.6 million to CLP 71.5 million.
Social Security: Development unit (UF) to CLP 28,324, effective January 15, 2020, which increased the following wage ceilings:
Employment insurance by CLP 1 million to CLP 39.9 million.
Other contributions by CLP 667,630 to CLP 26.6 million.
Colombia
Increased the following, effective January 1, 2020:
Income Tax: Tax unit (UVT) to COP 35,607, which increased the following:
Tax bracket thresholds. The threshold for the top rate of 33% increased by COP 41.4 million to COP 1.1 billion.
Basic allowance by COP 3.9 million to COP 102.5 million.
Social Security: Monthly minimum salary to COP 877,803, which increased the wage ceiling by COP 14.9 million to COP 263.3 million.
Ecuador
Income Tax: Made the following changes, effective January 1, 2020:
Increased the tax bracket thresholds. The threshold for the top rate of 35% increased by USD 48 to USD 115,338.
Added a phaseout threshold to the personal deduction. The deduction will phase out completely when income exceeds USD 100,000.
Finland
Income Tax: Increased the bracket thresholds, effective January 1, 2020. The threshold for the top rate of 31.3% increased by EUR 2,400 to EUR 78,500.
France
Income Tax: Made the following changes, effective January 1, 2020:
Decreased the lowest tax rate by 3% to 11%.
Updated the tax bracket thresholds. The threshold for the top rate of 45% increased by EUR 1,562 to EUR 157,806.
Removed the household credit (Réfaction).
Increased the following:
Maximum employment allowance by EUR 125 to EUR 12,627.
Phaseout thresholds for the low income credit (La Décote) by EUR 123 to EUR 1,717 and by EUR 215 to EUR 2,842 for single and married taxpayers, respectively.
Relief limitation deduction thresholds.
Social Security: Made the following changes, effective January 1, 2020:
Increased the ceiling 1 wage limit by EUR 612 to EUR 41,136, which increased the ceiling 3 and 4 limits by EUR 2,448 to EUR 164,544 and EUR 4,896 to EUR 329,088, respectively.
Decreased the employer work accident rate by 0.1% to 2.2%.
Increased the lower supplemental pension rate by 0.1% to 4.2% and 0.1% to 6.3% for employee and employer, respectively.
Other Employer Costs: Added the Calculate Payroll Tax? input, which provides the Yes, No, and Automatic options for calculating payroll tax. Previously, this tax was calculated for outbounds if employees remain as tax resident and for inbounds unless treaty exemption applies.
When Automatic is selected, payroll tax will be calculated based on social security agreements and requirements of the home and host countries. As a result, the tax will calculate for outbound nonresidents if a social security agreement is in force between France and the host country; and the tax will exclude the 3% transport portion of payroll tax for inbounds if a social security agreement is in force between France and the home country.
Germany
Increased the following, unless otherwise indicated, effective January 1, 2020:
Income Tax:
Tax bracket thresholds. The threshold for the top rate of 45% increased by EUR 5,174 to EUR 270,500.
Employee voluntary pension deduction rate by 4% to 90%.
Child deduction by EUR 96 to EUR 3,906 per child.
Social Security:
Pension contribution wage ceiling by EUR 2,400 to EUR 82,800 for West Germany and EUR 4,200 to EUR 77,400 for East Germany.
Health contribution wage ceiling by EUR 1,800 to EUR 56,250.
Decreased the health and unemployment contribution rates by 0.9% to 14.6% and 0.1% to 2.4%, respectively.
Greece
Income Tax: Decreased the following, effective January 1, 2020:
Tax rates and added a lowest bracket of 9% applicable to income below EUR 10,000. The new top rate of 44% applies to income over EUR 40,000.
Solidarity contribution rates and removed the 6.5% and 7.5% brackets. The top rate remains 10% applicable to income over EUR 220,000.
Personal credit amounts and phaseout threshold. The credit is fully phased out when income exceeds EUR 50,000 for employees with no dependents. The credit is not subject to phaseout if the employee has 5 or more dependents.
Hong Kong
Social Security: Updated Mandatory Provident Fund contributions to be calculated on base compensation. Previously, contributions were calculated on base salary.
Ireland
Income Tax: Corrected Employer Pension Contribution to be nontaxable. The previous calculation resulted in a potential overstatement of tax.
Japan
Income Tax: Updated the following as a result of the 2018 tax reform, effective January 1, 2020:
Decreased the employment income deduction. The maximum deduction decreased by JPY 250,000 to approximately JPY 2 million for taxpayers earning JPY 8.5 million and above.
Increased the personal allowances by JPY 100,000 to JPY 480,000 and JPY 430,000, for national and inhabitant taxpayers earning JPY 24 million and below, respectively.
Added personal and spousal allowance phaseouts. The allowances will phase out completely when income exceeds JPY 25 million and JPY 10 million, respectively.
Added a dependent exemption of JPY 380,000 per dependent. The exemption is available to residents for the national tax calculation.
Malaysia
Income Tax: Made the following changes, effective January 1, 2020:
Added a new top rate of 30% applicable to income over MYR 20 million.
Increased the nonresident rate by 2% to 30%.
Mexico
Social Security: Increased the wage ceiling by MXN 57,305 to MXN 792,780, effective January 1, 2020.
Netherlands
Increased the following, effective January 1, 2020:
Income Tax:
Two lowest bracket thresholds. The threshold for the top rate of 51.8% remains EUR 68,507.
Employment Levy Rebate rates and bracket thresholds. The maximum rebate increased by EUR 420 to EUR 3,819.
General tax credit amount and phaseout rate by EUR 40 to EUR 2,517 and 1% to 5.7%, respectively.
Minimum salary to qualify for the 30% ruling concession by EUR 781 to EUR 54,781.
Social Security:
Employee and employer wage ceilings by EUR 412 to EUR 34,712 and EUR 1,305 to EUR 57,232, respectively.
Employer contribution rate by 3.2% to 25.4%. The updated rates for each contribution are:
4% Unemployment
3% Disability
7% Health
Peru
Income Tax: Increased the tax unit to PEN 4,300, effective January 1, 2020, which increased the following:
Tax bracket thresholds. The threshold for the top rate of 30% increased by PEN 4,500 to PEN 193,500.
Standard deduction by PEN 700 to PEN 30,100.
Slovakia
Income Tax: Made the following changes, effective January 1, 2020:
Increased the personal and spousal allowances by EUR 378 to EUR 4,414.
Decreased the personal allowance phaseout threshold by EUR 1,513 to EUR 19,507.
Sweden
Income Tax: Removed the top rate of 25%, effective January 1, 2020. The new top rate of 20% applies to income over SEK 509,300.
Switzerland
Income Tax: Changed the following allowances to be taxable unless Qualifies as International Employee? is set to Yes, or the assignment type is Short Term with Deductions and duration is 12 months or less:
Transportation of Household Goods to Foreign Location and on Repatriation
En Route Meals
Geneva
Income Tax: Made the following changes, effective January 1, 2020:
Increased the bracket thresholds. The threshold for the top rate of 19% increased by CHF 4,736 to CHF 621,534.
Increased the child deduction by CHF 3,020 to CHF 13,000.
Updated the withholding table used for the tax at source method.
Turkey
Income Tax: Added a new top rate of 40% applicable to income over TRY 500,000 and decreased the threshold for the 27% tax bracket, effective January 1, 2020.
United States
California
Income Tax: Increased the following, effective January 1, 2019, to incorporate the inflationary updates released on December 1, 2019:
Tax bracket thresholds. The threshold for the top rate of 12.3% increased by USD 17,762 to USD 590,742 for single taxpayers. Combined with the 1% tax imposed on income exceeding $1 million for mental health services, the top rate remains at 13.3%.
Phaseout threshold for itemized deductions and exemption credits. The threshold increased by USD 6,030 to USD 200,534 for single taxpayers.
Standard deductions and exemption credits.
Illinois
Income Tax: Increased the personal exemption by USD 100 to USD 2,325, effective January 1, 2020.
Maryland
Income Tax: Increased the minimum and maximum standard deductions for married filing jointly, qualified widow, and head of household taxpayers by USD 50 to USD 3,050 and USD 4,550, respectively, effective January 1, 2019.
Massachusetts
Income Tax: Decreased the tax rate by 0.1% to 5%, effective January 1, 2020.
Minnesota
Income Tax: Increased the following, effective January 1, 2020. Amounts apply to single taxpayers:
Tax bracket thresholds. The threshold for the top rate of 9.9% increased by USD 2,680 to USD 164,400.
Itemized deduction, standard deduction, and dependent exemption phaseout thresholds. The thresholds increased by USD 3,200 to USD 197,850.
Dependent exemption by USD 50 to USD 4,300.
North Carolina
Income Tax: Increased the standard deductions, effective January 1, 2020. The deduction increased by USD 750 to USD 10,750 for single taxpayers.
Venezuela
Social Security: Increased the monthly minimum salary to VES 250,000, effective January 1, 2020, which increased the following wage ceilings:
Social security by VES 13.7 million to VES 16.3 million.
Unemployment insurance by VES 27.3 million to VES 32.5 million.
