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Equus Tax Engine v.22.4 released 28 July 2022

Highlights Features Updates Recordings Resources Click for full PDF release notes Highlights More Details for Home Country Employer Social Tax Added Actual Employer Portion Social Tax details to

Updated over 2 weeks ago


Highlights Features Updates Recordings Resources

Highlights

More Details for Home Country Employer Social Tax

Added Actual Employer Portion Social Tax details to the Information section of the Cost Estimate Calculation Detail report. The number of months used to calculate this output is also displayed making this information especially useful for estimates with partial periods. This enhancement builds upon the upgrade made in v.22.3 to align the calculation of partial year Employer Portion Social Tax in the home country with Employee Portion Social Tax.

Values can now be traced directly from the Years 1-6 report to the Calculation Detail report. The additional disclosure of the upgraded employer social tax presents federal income and social tax costs in one location, providing a comprehensive look at the tax costs impact of the assignment and increasing the transparency of the report.

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New Country

Added Uganda, bringing the number of supported countries to 96. See Appendix A for full list.

Uganda

Uganda is the latest country within the African continent supported by the Equus Engine. It utilizes the Ugandan Shilling (UGX).

Residents are subject to individual income tax on worldwide earnings, with a credit provided for foreign taxes paid.

Uganda has no totalization agreements; however, when Calculate Social Tax? is set to Automatic, inbound employees with Assignment Duration less than 36 months are exempt from the National Social Security Fund (NSSF) contributions.

Features

Home Country Employer Social Tax Details

Added display of actual employer social security contributions and months used in the calculation to the Information section of the Cost Estimate Calculation Detail report for equalized cost estimates.

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The months used in the calculation of employer social tax changes in What-If Cost Estimates when utilizing the Work Time Split feature and Include Home Work Time Costs preference is selected on the template to the total months for the project period instead of host months. The caption also changes to Total Months for Employer Social Tax.

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For a more detailed explanation of how these amounts are calculated, please refer to the Calculation of Part Year Home Country Tax article in the help center.

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. Amounts are annual unless stated otherwise.

Belgium

Income Tax: Corrected the outbound foreign income tax exemption to consistently calculate when an applicable tax treaty is in force. Previously, the exemption may not calculate when host tax is very low, resulting in a potential overstatement of tax.

Canada

New Brunswick

Income Tax: Increased the personal amount by CAD 903 to CAD 11,720, retroactively effective January 1, 2022.

Chile

Increased the following, effective June 1, 2022:

Income Tax: Tax unit (UTM) to CLP 57,557, which increased the tax bracket thresholds. The threshold for the 40% top bracket increased by 12.6 million to CLP 214.1 million.

Social Security: Development unit (UF) to CLP 32,694, which increased the following wage ceilings:

  • Employment insurance by CLP 2.8 million to CLP 48.1 million.

  • Other contributions by CLP 1.9 million to CLP 32 million.

Finland

Income Tax: Added a monthly standard deduction of EUR 510 to inbound assignments of six months or less when assignment type is not Short Term with Deductions. When Short Term with Deductions is selected, this estimator treats certain line items as nontaxable which makes the standard deduction ineligible.

Germany

Income Tax: Changed the following:

  • Corrected the solidarity surcharge to calculate as the lower of 5.5% of national tax and 11.9% of the excess over the surcharge threshold. Previously, the surcharge was calculated as 5.5% of the excess of national tax over the threshold, resulting in a maximum understatement of EUR 1,865.

  • Increased the basic exemption by EUR 363 to EUR 10,347 and the standard employment deduction by EUR 200 to EUR 1,200, retroactively effective January 1, 2022.

India

Income Tax: Corrected the surcharge relief to include the calculated surcharge. Previously, the relief was based only on calculated tax, resulting in a potential understatement of tax.

Italy

Changed the following:

Income Tax: Inbound assignments of six months or less to calculate the employment credit.

Social Security: The Social Tax Details report to display the social wage base in the base column. Previously, the wage ceiling was displayed.

Jordan

Social Security: Increased the wage ceiling by JOD 540 to JOD 40,728, retroactively effective January 1, 2022.

Pakistan

Income Tax: Changed the following, effective July 1, 2022:

  • Decreased the number of tax brackets from twelve to seven.

  • Adjusted the bracket thresholds and rates. The threshold for the top bracket of 35% decreased by PKR 63 million to PKR 12 million.

Social Security: Increased the wage ceiling by PKR 18,000 to PKR 228,000, retroactively effective July 1, 2021.

Poland

Income Tax: Decreased the 17% bracket rate to 12%, effective July 1, 2022.

Portugal

Income Tax:

  • Removed the earned income and social security deductions for inbound assignments of six months or less.

  • Changed the following, retroactively effective January 1, 2022:

  • Increased the number of tax brackets from seven to nine by adding brackets of 26.5% and 43.5% with thresholds of EUR 10,736 and EUR 36,757, respectively.

  • Adjusted the bracket thresholds. The threshold for the top bracket of 48% decreased by EUR 5,873 to EUR 75,009.

Serbia

Income Tax: Increased the maximum deduction and nontaxable portion of employee and employer voluntary pension contributions, respectively, by RSD 5,748 to RSD 78,492, effective February 1, 2022.

Slovakia

Income Tax: Increased the minimum monthly subsistence amount by EUR 16 to EUR 234, effective July 1, 2022, which increased the following:

  • Threshold for the 25% top bracket by EUR 2,892 to EUR 41,445.

  • Maximum personal and spousal allowances by EUR 344 to EUR 4,923.

  • Personal allowance phaseout threshold by EUR 1,518 to EUR 21,754.

Slovenia

Income Tax: Changed the following, retroactively effective January 1, 2022:

  • Increased the bracket thresholds. The threshold for the 45% top bracket increased by EUR 2,160 to EUR 74,160.

  • Added a bonus exclusion to deduct one month of Base Salary.

  • Increased the dependent deductions. The amount increased by EUR 72 to EUR 2,510 for the first dependent.

Turkey

Increased the daily minimum wage to TRY 216, effective July 1, 2022, which increased the following:
Income Tax: Wage exemption and maximum voluntary pension deduction by TRY 17,604 to TRY 77,652.
Social Security: Wage ceiling by TRY 132,030 to TRY 582,390.

United Kingdom

Social Security: Removed “Monthly” from the total amount captions on the Social Tax Details report.

United States

South Carolina

Income Tax: Decreased the number of tax brackets from six to three, retroactively effective January 1, 2022. The new top bracket rate decreased by 0.5% to 6.5%. The bracket threshold remains USD 16,040.

Virginia

Income Tax: Increased the standard deductions for all filing status, retroactively effective January 1, 2022. The deduction increased by USD 3,500 to USD 8,000 for single taxpayers.

Venezuela

Income Tax: Increased the tax unit by VES 380,000 to VES 400,000, effective April 20, 2022, which increased the following:

  • Tax bracket thresholds. The threshold for the 34% top bracket increased by VES 2,280 to VES 2,400.

  • Standard deduction by VES 294 to VES 310.

Vietnam

Social Security: Increased the unemployment insurance wage ceiling by VND 62.4 million to VND 1.12 billion, effective July 1, 2022.

Recordings

Resources

Help Center articles updated this release:

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