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Key Features
Release version 20.2.0 features calculation and rate changes to reflect current tax law.
The effective dates disclosed below indicate when the changes enter into force.
Social Security Agreements
The following social security agreement was added:
Agreement countries
|
Effective date
|
Coverage period
|
Angola - Portugal
|
Apr 1, 2020
|
48 Months
|
Country Updates
Austria
Income Tax: Changed the following relocation costs to be taxable for inbound employees with the Permanent assignment type:
Family Airfare/Hotel En route to Foreign Location and on Repatriation
Temporary Housing in Home Country
Belgium
Income Tax: Increased the following, effective January 1, 2020. These updates were included in v.20.1.2, released on February 21, 2020.
Tax bracket thresholds. The threshold for the top rate of 50% increased by EUR 580 to EUR 41,060.
De minima table thresholds. The threshold for the top rate of 50% increased by EUR 580 to EUR 41,060.
Maximum allocation to non-working spouse by EUR 150 to EUR 11,090.
Personal exemption by EUR 130 to EUR 8,990.
Standard business deduction limit by EUR 70 to EUR 4,880.
Dependent exemptions. The exemption for four children increased by EUR 220 to EUR 15,250.
Additional dependent exemption. The exemption for each child in excess of four increased by EUR 80 to EUR 5,820.
Brazil
Social Security: Changed the employee social security calculation to use a progressive table, effective March 1, 2020. Previously, the contribution was calculated at 14% of assignment income up to BRL 75,913, resulting in a maximum overstatement of BRL 1,833.
Canada
Alberta
Income Tax: Increased the following, effective January 1, 2020:
Tax bracket thresholds. The threshold for the top rate of 15% increased by CAD 7,381 to CAD 314,928.
Personal, spousal, and dependent amounts by CAD 454 to CAD 19,369.
Chile
Income Tax: Made the following changes:
Added a new top tax rate of 40% on income above UTM 310, effective January 1, 2020.
Increased the UTM by CLP 348 to CLP 50,021, effective March 1, 2020. The new top rate of 40% applies to income above CLP 186.1 million.
Added a deduction for employee voluntary pension contributions for outbound employees capped at CLP 17 million.
Colombia
Income Tax: Added the dependent allowance calculated as 10% of gross income up to COP 13.7 million for employees who are single with dependents or married.
Costa Rica
Income Tax: Replaced the tax bracket thresholds with annual amounts. Monthly amounts were introduced in v.9.6.0 resulting in a maximum tax overstatement of CRC 5.2 million when income exceeds CRC 51.9 million. This change was included in v.20.1.1, released on February 7, 2020.
Czech Republic
Income Tax & Social Security: Increased the solidarity tax threshold and social security wage ceiling by CZK 102,528 to approximately CZK 1.7 million, effective January 1, 2020.
Denmark
Income Tax: Decreased the basic tax rate by 0.1% to 12.1% and increased the local tax rate by 0.1% to 25%, effective January 1, 2020.
Finland
Made the following changes, effective January 1, 2020:
Income Tax: Decreased the nonresident and expatriate concession rates by 3% to 32%.
Social Security:
Increased the employee and employer contribution rates by 1% to 10.1% and 21.8%, respectively.
Added a threshold of EUR 14,574 to the health insurance contribution. The contribution calculates at 1.2% when assignment income is over the threshold.
France
Corrected the following:
Social Security:
The outbound employee hypothetical social tax calculation when a value is entered using the Hypothetical Social Tax input and base compensation is over EUR 324,192. Previously, the entered value did not decrease total tax costs, resulting in an overstatement of tax. This error was introduced in v.8.1.
The CSG and CRDS wage base for inbound, partial year assignments. The previous calculation resulted in a maximum tax understatement of EUR 256.
Germany
Made the following changes:
Income Tax: Increased the deductible portion of the mandatory pension contribution by 8% to 80%, effective January 1, 2020.
Income Tax & Social Security: Changed the calculation to exclude employer and employee voluntary pension contributions up to EUR 6,624 from the income tax base, and up to EUR 3,312 from the social wage base. Previously, employer contributions were taxable, and employee contributions were deductible up to EUR 18,000.
Ghana
Income Tax: Increased all tax bracket thresholds except the 30% top bracket which remains GHS 240,000, effective January 1, 2020.
Greece
Income Tax: Corrected the solidarity tax calculation to use a progressive tax table. Previously, the solidarity contribution was calculated using graduated flat rates, resulting in a maximum tax overstatement of EUR 6,600.
Ireland
Income Tax: Increased the Universal Social Charge 2% upper bracket threshold by EUR 610 to EUR 20,484, effective January 1, 2020.
Israel
Increased the following, effective January 1, 2020:
Income Tax:
Tax bracket thresholds. The threshold for the top rate of 50% increased by ILS 2,040 to ILS 651,600.
Credit point value by ILS 12 to ILS 2,628.
Social Security: Wage ceiling by ILS 1,560 to ILS 528,240.
Japan
Social Security: Made the following changes, effective March 1, 2018:
Added an uncapped employer contribution of 0.3% for accident insurance.
Increased the employee and employer health insurance contribution rates by 0.1% to 5.8%.
Decreased the employee and employer unemployment insurance contribution rates by 0.1% to 0.4% and 0.8%, respectively.
Kenya
Social Security: Made the following changes to the National Housing Development Fund:
Corrected the contribution by increasing the wage ceiling by KES 1.9 million to KES 2 million. The previous calculation resulted in a maximum tax understatement of KES 29,100.
Increased the contribution rate by 1% to 1.5%, effective April 1, 2019.
Luxembourg
Income Tax:
Changed Employer Pension Contribution to be taxable for outbound employees instead of calculating a deduction of up to 20% of income.
Updated the general tax credit to calculate using a table, effective January 1, 2019. The maximum credit of EUR 600 begins to phase out when income exceeds EUR 40,000 and is fully phased out at EUR 80,000.
Updated the employment fund surcharge table. The surcharge increased by EUR 22 when income exceeds EUR 150,000 for single taxpayers.
Social Security: Made the following changes, effective January 1, 2020:
Increased the wage ceiling by EUR 3,135 to EUR 128,520.
Decreased the employer contribution rate by 0.1% to 14.6%.
Netherlands
Income Tax: Corrected the following, effective January 1, 2020:
Employment levy rebate to fully phase out at EUR 98,604. The previous calculation resulted in a maximum tax overstatement of EUR 474 when taxable income is between EUR 90,710 and EUR 98,604.
Tax table and general tax credit. These were updated in v.20.1.0 using incorrect amounts, resulting in an overstatement of tax costs. This change was included in v.20.1.1, released on February 7, 2020.
New Zealand
Income Tax: Increased the wage ceiling for the ACC Earners Levy by NZD 2,441 to NZD 130,911, effective April 1, 2020.
Norway
Income Tax: Made the following changes, effective January 1, 2020:
Increased the state tax bracket thresholds. The threshold for the top rate of 16.2% increased by NOK 34,750 to NOK 999,550.
Increased the maximum deduction amount by NOK 3,650 to NOK 104,450.
Decreased the personal allowance by NOK 5,250 to NOK 51,300.
Income Tax & Social Security: Changed voluntary employer pension contributions to be taxable for state tax and social security. These contributions remain nontaxable for national tax.
Poland
Increased the following, effective January 1, 2020:
Income Tax: Maximum employee pension contribution deduction by PLN 554 to PLN 6,272.
Social Security: Pension and disability wage ceilings by PLN 13,860 to PLN 156,810.
Puerto Rico
Income Tax: Added a 5% credit on calculated tax, effective January 1, 2019.
South Africa
Income Tax: Made the following changes:
Increased the following, effective March 1, 2020:
Tax bracket thresholds. The threshold for the top rate of 45% increased by ZAR 577,300 to ZAR 1.6 million.
Foreign earned income exemption limit by ZAR 250,000 to ZAR 1.3 million.
Primary rebate by ZAR 738 to ZAR 14,958.
Changed the 24-month nontaxable treatment of Host Housing Costs to apply when Assignment Type is not Permanent instead of when Tax Calculation Method is Equalized.
South Korea
Income Tax: Added the earned income deduction limit of KRW 20 million applicable to income over KRW 362.5 million, effective January 1, 2020.
Spain
Income Tax: Made the following changes:
Added the large family credit of EUR 1,200 for three dependents, capped at EUR 2,400 for five or more dependents.
Corrected the calculation by removing the personal and family deduction, which was erroneously added in v.9.6, resulting in an understatement of tax. The personal and family credit continues to calculate.
Sweden
Social Security: Increased the employee wage ceiling by SEK 19,368 to SEK 539,076, effective January 1, 2020.
Switzerland
Berne
Income Tax: Added the general employment deduction of 3% of assignment income up to CHF 4,000.
Vaud
Income Tax: Removed the dependent deduction of CHF 3,200 per dependent because the relief is included in the family coefficient adjustment in calculating canton tax. This duplication resulted in a potential understatement of tax.
Taiwan
Social Security: Corrected the employer pension contribution by increasing the wage ceiling by 1.7 million to 1.8 million. The previous calculation resulted in a maximum tax understatement of TWD 99,000.
Turkey
Income Tax: Increased the tax bracket thresholds, effective January 1, 2020. The threshold for the top rate of 40% increased by TRY 100,000 to TRY 600,000.
Ukraine
Social Security: Increased the employer wage ceiling by UAH 99,540 to UAH 850,140, effective January 1, 2020.
United Kingdom
Increased the following, effective April 6, 2020:
Income Tax: Scottish tax bracket thresholds for the 19% and 20% rates. The threshold for the top rate of 46% remains GBP 150,000.
Social Security: Monthly employee and employer minimum wage thresholds by GBP 73 to GBP 792 and GBP 13 to GBP 732, respectively.
United States
Income Tax:
Updated the limitations on host housing expenses, effective January 1, 2020. Locations not eligible for adjusted limitations use the default of USD 32,280.
Replicated China – Hong Kong so that it also appears as Hong Kong – Hong Kong in the list of high cost locations. This change will facilitate proper Host Housing City defaulting when Hong Kong is entered as the country and city in the assignment record.
Missouri
Income Tax: Increased the tax bracket thresholds and decreased the top tax rate, effective January 1, 2020. The threshold for the new top rate of 5.4% increased by USD 160 to USD 8,584.
New York
Income Tax: Made the following changes, effective January 1, 2020. Amounts apply to single taxpayers:
Decreased the 5th and 6th tax rates by 0.1% to 6.1% and 6.4%, respectively. These rates apply to income between USD 21,400 and USD 215,400.
Updated the tax computation worksheet amounts.
Oregon
Income Tax: Increased the following, effective January 1, 2020, unless otherwise indicated. Amounts shown apply to single taxpayers:
Tax bracket thresholds for the 4.8%, 6.8%, and 8.8% brackets. The threshold for the top rate of 9.9% remains USD 125,000.
Standard deductions. The deduction increased by USD 100 to USD 2,315.
Exemption credit by USD 4 to USD 210.
Maximum federal tax deductions. The maximum increased by USD 150 to USD 6,800, effective January 1, 2019.
Virginia
Income Tax: Reinstated the itemized deduction phaseout as a result of House Bill 2529, effective January 1, 2019. The threshold is USD 271,700 for single taxpayers.
Venezuela
Income Tax: Increased the tax unit by VES 1,450 to VES 1,500, which increased the threshold for the top tax rate of 34% by VES 8.7 million to VES 9 million, effective January 1, 2020.
