Updates
Updates include calculation and rate changes to reflect current tax law resulting from inflation adjustments, legislative changes, and review of supported authorities. Effective dates indicate when the changes enter into force. Updates are effective January 1, 2022, and amounts are annual, unless stated otherwise.
Argentina
Income Tax: Increased the following by the indexing rate of 50.62%:
Tax bracket thresholds. The threshold for the 35% top bracket increased by ARS 522,710 to ARS 1.56 million.
Basic deduction by ARS 84,887 to ARS 252,565.
Spouse deduction by ARS 79,136 to ARS 235,457.
Child deduction by ARS 39,909 to ARS 118,742.
Austria
Social Security: Updated the following:
Increased the recurring and non-recurring wage ceilings by EUR 1,440 to EUR 68,040 and EUR 240 to EUR 11,340, respectively.
Decreased the employer recurring and non-recurring contribution rates by 0.1% to 21.13% and 20.63%, respectively.
Belgium
Income Tax: Increased the following by the indexing rate of 2.4%:
Tax bracket and de minima table thresholds. The thresholds for the 50% top brackets increased by EUR 1,010 to EUR 42,370.
Maximum income allocation to non-working spouse by EUR 280 to EUR 11,450.
Standard business deduction limit by EUR 120 to EUR 5,040.
Personal exemption by EUR 220 to EUR 9,270.
Dependent exemptions. The exemption for one child increased by EUR 40 to EUR 1,690.
Canada
Manitoba
Income Tax: Increased the following by the indexing rate of 2.1%:
Tax bracket thresholds. The threshold for the 17.4% top bracket increased by CAD 1,531 to CAD 74,416.
Personal amount by CAD 209 to CAD 10,145.
New Brunswick
Income Tax: Increased the following, unless stated otherwise:
Tax bracket thresholds. The threshold for the 20.3% top bracket increased by CAD 3,897 to CAD 166,280.
Decreased the lowest tax rate by 0.28% to 9.4%.
Personal amount by CAD 253 to CAD 10,817.
Spouse and dependent amounts by CAD 216 to CAD 9,186.
Newfoundland and Labrador
Income Tax: Increased the following:
The five-bracket tax table to eight by adding tax brackets of 20.8%, 21.3%, and 21.8% with thresholds of CAD 250,000, CAD 500,000, and CAD 1 million, respectively.
The 17.3% and 18.3% bracket rates to 17.8% and 19.8%.
The bracket thresholds.
Personal amount by CAD 267 to CAD 9,803.
Spousal and dependent amounts by CAD 219 to CAD 8,011.
Prince Edward Island
Income Tax: Increased the following:
Personal amount by CAD 750 to CAD 11,250.
Spouse and dependent amounts by CAD 637 to CAD 9,555.
Saskatchewan
Income Tax: Increased the following:
Tax bracket thresholds. The threshold for the 14.5% top bracket increased by CAD 3,132 to CAD 133,638.
Personal, spouse, and dependent amounts by CAD 390 to CAD 16,615.
Chile
Increased the following, effective December 1, 2021:
Income Tax: Tax unit (UTM) to CLP 54,171, which increased the threshold for the 40% top bracket by CLP 7.5 million to CLP 201.5 million.
Social Security: Development unit (UF) to CLP 30,776, which increased the following wage ceilings:
Employment insurance by CLP 1.6 million to CLP 45.3 million.
Other contributions by CLP 1 million to CLP 30.1 million.
China
Income Tax: Extended the expiration of the following concessions from December 31, 2021, to December 31, 2023:
Income exemption for foreign nationals. When Chinese National? is set to No and the year label is 2023 or earlier for cost estimates, qualified allowances are excluded. Qualified allowances include host housing and moving costs.
Preferential bonus calculation. When Bonus Calculation Method? is set to Preferential and the effective date is December 31, 2023, or earlier for compensation calculations or the year label is 2023 or earlier for cost estimates, amounts entered as Bonus are taxed at preferential rates.
Because these concessions reduce tax costs, it is recommended that cost estimates and compensation calculations that qualify for these concessions and include 2022 or 2023 be evaluated to consider if recalculation is useful.
Colombia
Increased the following:
Income Tax: Tax unit (UVT) to COP 38,004, which increased the following. Amounts shown in millions:
Tax bracket thresholds. The threshold for the 39% top bracket increased by COP 52.6 to COP 1,178.
Maximum voluntary pension deduction by COP 6.4 to COP 144.4.
Basic and dependent allowances by COP 4.9 to COP 109.5 and COP 0.6 to COP 14.6, respectively.
Social Security: Monthly minimum salary to COP 1 million, which increased the following. Amounts shown in millions:
Wage ceiling by COP 27.4 to COP 300.
Employee pension solidarity bracket thresholds. The threshold for the 2% top bracket increased by COP 22 to COP 240.
Costa Rica
Income Tax: Increased the tax bracket thresholds. The threshold for the 25% top bracket increased by CRC 1.3 million to CRC 53.3 million.
Croatia
Social Security: Increased the employee wage ceiling by HRK 25,632 to HRK 686,664.
Denmark
Income Tax: Increased the following, unless stated otherwise:
Maximum tax rate by 0.01% to 52.07% and decreased the basic tax rate by 0.01% to 12.09%.
Top bracket threshold by DKK 7,700 to DKK 552,500.
Maximum pension and extra pension deductions by DKK 700 to DKK 59,200 and DKK 900 to DKK 75,600, respectively.
Maximum employment allowance by DKK 1,000 to DKK 41,600 and employment allowance rate by 0.05% to 10.65%.
Job allowance threshold by DKK 2,400 to DKK 202,700.
Decreased the personal allowance by DKK 100 to DKK 46,600.
Expatriate concession minimum salary by DKK 9,600 to DKK 844,800.
Ecuador
Income Tax: Made the following changes:
Added a new top tax bracket and updated the bracket thresholds. The threshold for the 37% top bracket is USD 100,000.
Replaced the personal deduction with a credit. The credit is USD 1,008 up to income of USD 24,090, and USD 504 when income exceeds the threshold.
Finland
Updated the following:
Income Tax: Increased the tax bracket thresholds. The threshold for the 31.25% top bracket increased by EUR 2,400 to EUR 82,900.
Social Security: Decreased the employee contribution rate by 0.23% to 10.36% and increased the employer contribution rate by 0.41% to 21.56%.
France
Income Tax: Increased the following:
Tax bracket thresholds. The threshold for the 45% top bracket increased by EUR 2,214 to EUR 160,336.
Nonresident tax bracket thresholds. The threshold for the 30% top bracket increased by EUR 970 to EUR 70,243.
Maximum employment allowance by EUR 177 to EUR 12,829.
Phaseout thresholds for the low-income credit (La Décote) by EUR 24 to EUR 1,746 and by EUR 40 to EUR 2,888 for single and married taxpayers, respectively.
Relief limitation deduction thresholds.
Germany
Updated the following:
Income Tax:
Increased the tax bracket thresholds. The threshold for the 45% top bracket increased by EUR 3,212 to EUR 277,825.
Decreased the maximum voluntary pension deduction by EUR 48 to EUR 6,768.
Social Security: Increased the East Germany and decreased the West Germany pension wage ceilings by EUR 600 to EUR 81,000 and EUR 84,600, respectively.
Ghana
Income Tax: Increased all tax bracket thresholds except the top 30% bracket which remains GHS 240,000.
Hungary
Social Security: Decreased the employer contribution rate by 4% to 13%.
Ireland
Income Tax: Increased the following:
Tax bracket thresholds. The threshold for the 40% top bracket increased by EUR 1,500 to 36,800 for single taxpayers.
Threshold for the Universal Social Charge 4.5% bracket by EUR 608 to EUR 21,295. The threshold for the top bracket of 8% remains EUR 70,044.
Personal and employee PAYE credits by EUR 50 to EUR 1,700.
Israel
Social Security: Increased the wage ceiling by ILS 12,660 to ILS 540,900.
Italy
Income Tax: Updated the following:
Made these tax table changes:
Reduced the five-bracket tax table to four by removing the 41% bracket which applied to income between EUR 55,000 and EUR 75,000.
Decreased the threshold for the 43% top bracket by EUR 25,000 to EUR 50,000.
Decreased the 27% and 38% bracket rates to 25% and 35%. The thresholds remain EUR 15,000 and EUR 28,000, respectively.
Increased the maximum employment credit by EUR 20 to EUR 3,100.
Ivory Coast
Social Security: Corrected the social security wage ceiling to XOF 32.4 million. The previous ceiling of XOF 19.8 million resulted in a maximum potential tax understatement of XOF 1.8 million.
Kazakhstan
Increased the minimum monthly salary to KZT 60,000, which increased the following:
Income Tax: Basic allowance by KZT 210,000 to KZT 720,000.
Social Security: Wage ceilings:
Employee pension by KZT 10.5 million to KZT 36 million.
Employer social security by KZT 1.4 million to KZT 5 million.
Medical insurance by KZT 2.1 million to 7.2 million.
Luxembourg
Social Security: Increased the following:
Employer mutual health care contribution rate by 0.1% to 2.98%.
Wage ceiling by EUR 3,301 to EUR 135,417, effective October 1, 2021.
Mexico
Social Security: Increased the wage ceiling by MXN 60,225 to MXN 878,008.
Netherlands
Updated the following:
Income Tax:
Decreased the two lowest tax rates by 0.03% to 9.42% and 37.07%, respectively.
Tax bracket thresholds. The threshold for the 49.5% top bracket increased by EUR 891 to EUR 69,398.
Employment credit rates, bracket thresholds, and phaseout rate. The maximum credit increased by EUR 55 to EUR 4,260.
General credit amount, phaseout threshold, and phaseout rate. The maximum credit increased by EUR 51 to EUR 2,888.
Minimum salary to qualify for the 30% ruling concession increased by EUR 722 to EUR 56,381.
Social Security:
Increased the employee and employer wage ceilings by EUR 343 to EUR 35,472 and EUR 1,391 to EUR 59,702, respectively.
Decreased the employer contribution rate by 0.23% to 23.49%. The updated rates for each contribution are:
04% Disability
7% Unemployment
75% Health
Norway
Increased the following, unless stated otherwise:
Income Tax:
The five-bracket tax table to six by adding a 17.4% bracket with a threshold of NOK 2 million.
The 13.2% and 16.2% bracket rates to 13.4% and 16.4%. The thresholds decreased by NOK 7,450 to NOK 643,800 and NOK 52,350 to NOK 969,200, respectively.
The two lowest bracket thresholds.
The maximum deduction and personal allowance by NOK 3,200 to NOK 109,950 and NOK 5,800 to NOK 58,250, respectively.
Social Security: Decreased the employee contribution rate by 0.2% to 8%.
Peru
Income Tax: Increased the tax unit to PEN 4,600, which increased the following:
Tax bracket thresholds. The threshold for the 30% top bracket increased by PEN 9,000 to PEN 207,000.
Standard deduction by PEN 1,400 to PEN 32,200.
Poland
Made the following changes:
Income Tax:
Modified the tax table as follows:
Added a tax-exempt bracket, applicable to income up to PLN 30,000.
Increased the threshold for the top rate of 32% by PLN 34,472 to PLN 120,000.
Removed the health insurance credit.
Social Security: Increased the pension and disability wage ceilings by PLN 19,890 to PLN 177,660.
Russia
Social Security: Increased the following:
Pension threshold by RUB 100,000 to RUB 1.6 million. The contribution rate is 22% up to the threshold and 10% above.
Social insurance wage ceiling by RUB 66,000 to RUB 1 million.
Serbia
Increased the following:
Income Tax: The wage tax deduction by RSD 12,000 to RSD 231,600.
Social Security: The wage ceiling by RSD 424,680 to RSD 5.3 million.
Slovakia
Social Security: Increased the wage ceiling by EUR 3,444 to EUR 95,172.
South Korea
Social Security: Increased the health insurance wage ceiling by KWN 21.6 million to KWN 1.25 billion.
Spain
Made the following changes:
Income Tax: Reallocated EUR 500 of the maximum pension deduction from employee voluntary pension contributions to employer contributions. The maximum employee and employer deductions are EUR 1,500 and EUR 8,500, respectively.
Social Security: Increased the wage ceiling by EUR 832 to EUR 49,673.
Sweden
Increased the following:
Income Tax: Threshold at which income becomes taxable by SEK 17,500 to SEK 540,700.
Social Security: Employee wage ceiling by SEK 22,596 to SEK 572,970.
Switzerland
Social Security: Decreased the Geneva family allowance contribution rate by 0.12% to 2.4%.
Geneva
Income Tax: Changed the following:
Decreased the tax bracket thresholds. The threshold for the 19% top bracket decreased by CHF 1,776 to CHF 616,206.
Updated the withholding table used for the tax at source method.
Neuchatel
Income Tax: Updated the withholding table used for the tax at source method.
Schaffhausen
Income Tax: Decreased the cantonal coefficient by 8% to 94%.
Vaud
Income Tax: Updated the withholding table used for the tax at source method.
Taiwan
Income Tax:
Changed the inbound nonresident criterion from assignment duration to months in host. Inbound employees who spend six months or less in Taiwan during a calendar year are treated as nonresidents, taxed at a flat rate of 18%, and not eligible for deductions.
Changed these inbound concessions to use months in host instead of assignment duration to determine eligibility:
Nonresident Employer? if set to Yes, employment income is nontaxable if months in host is three or less
Qualifying Assignee? if set to Yes, certain allowances are nontaxable if months in host is more than six.
Corrected the inbound calculation when assignment duration is more than three but not more than six months and both Qualifying Assignee? and Nonresident Employer? are set to Yes to apply the 18% nonresident rate. Previously, no tax was calculated.
Turkey
Increased the following, unless stated otherwise:
Income Tax:
Tax bracket thresholds. The threshold for the 40% top bracket increased by TRY 230,000 to TRY 880,000.
Added a wage exemption of TRY 60,048, equal to the minimum wage.
Maximum voluntary pension deduction by TRY 17,118 to TRY 60,048.
Social Security: Wage ceiling by TRY 128,385 to TRY 450,360.
United Kingdom
Social Security: Added the additional employee and employer National Insurance contribution of 1.25% to calculate as follows:
For compensation calculations, when the effective date is April 1, 2022, or later. Effective date can be entered at the compensation calculation, assignment package, assignment package batch or compensation batch level. To include the additional contribution after v.22.1 is applied, enter April 1, 2022, in the effective date field of these features as applicable.
For cost estimates, when the year label is 2022 or later. Year label is defaulted based on the assignment actual or scheduled start date.
United States
Illinois
Income Tax: Increased the personal exemption by USD 50 to USD 2,425.
Louisiana
Income Tax: Updated the following:
Decreased the tax rates. The new top rate of 4.25% applies to income over USD 50,000 for single taxpayers.
Removed the deductions for federal income tax and excess itemized deductions.
Michigan
Income Tax: Increased the personal exemption by USD 100 to USD 5,000.
Minnesota
Income Tax: Increased the following. Amounts apply to single taxpayers:
Tax bracket thresholds. The threshold for the 9.85% top bracket increased by USD 5,180 to USD 171,220.
Deduction and dependent exemption phaseout thresholds. The thresholds increased by USD 6,200 to USD 206,050.
Dependent exemption by USD 100 to USD 4,450.
Missouri
Income Tax: Decreased the top bracket rate by 0.1% to 5.3% and increased the thresholds. The new top rate applies to income above USD 8,968.
North Carolina
Income Tax: Made the following changes:
Decreased the tax rate by 0.26% to 4.99%.
Increased the standard deductions. The deduction increased by USD 2,000 to USD 12,750 for single taxpayers.
Increased the maximum child deduction by USD 500 to USD 3,000 and the thresholds at which the deduction is fully phased out. The threshold increased by USD 10,000 to USD 70,000 for single taxpayers.
Oregon
Income Tax: Increased the federal tax deductions, retroactively effective January 1, 2021. The maximum increased by USD 100 to USD 7,050.
Rhode Island
Income Tax: Increased the following:
Tax bracket thresholds. The threshold for the 6% top bracket increased by USD 4,500 to USD 155,050.
Standard deductions. The deduction increased by USD 250 to USD 9,300 for single taxpayers.
Personal exemption by USD 100 to USD 4,350.
Personal exemption phaseout threshold and step by USD 6,300 to USD 217,050 and USD 200 to USD 6,200, respectively.
South Carolina
Income Tax: Increased the following:
Tax bracket thresholds. The threshold for the 7% top bracket increased by USD 480 to USD 16,040.
Dependent exemption by USD 170 to USD 4,430.
Utah
Income Tax: Increased the following by the indexing rate of 3.08%:
Dependent exemption by USD 54 to USD 1,804.
Tax credit phaseout thresholds. The threshold increased by USD 465 to USD 15,560 for single taxpayers.
Virginia
Income Tax: Increased the itemized deduction phaseout thresholds, retroactively effective January 1, 2021. The threshold increased by USD 6,750 to USD 278,450 for single taxpayers.
Vietnam
Social Security: Reverted the social and health insurance wage ceiling to VND 357.6 million. The increase to VND 384 million, included in version 20.4, was not enacted.
Zambia
Increased the following, unless stated otherwise:
Income Tax: Tax bracket thresholds. The threshold for the 37.5% top bracket increased by ZMW 8,400 to ZMW 82,800.
Social Security: Wage ceiling by ZMW 17,328 to ZMW 293,232.
Other Employer Costs: Decreased the fringe benefits tax rate by 5% to 30%.
Income Tax Treaties
Added the following treaties, effective January 1, 2022:
Brazil - Singapore
Israel - United Arab Emirates
Italy - Mongolia
Japan - Serbia
Jordan - Singapore
Oman - Slovakia
Turkey - Venezuela
Removed the following treaties due to termination:
Greece - Sweden
Portugal - Sweden
Social Security Agreements
Agreement Countries | Effective Date | Coverage Period |
Finland - Japan | February 1, 2022 | 60 months |
Quebec, Canada - Serbia | February 1, 2022 | 36 months |