Updates Recordings Resources
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.
Argentina
Income Tax: Increased the following based on Consumer Price Index (CPI) changes, effective January 1, 2023:
Tax bracket thresholds. The threshold for the 35% top bracket increased by ARS 1.23 million to ARS 2.78 million.
Basic deduction by ARS 199,118 to ARS 451,683.
Spouse deduction by ARS 185,631 to ARS 421,088.
Child deduction by ARS 93,614 to ARS 212,356.
Social Security: Increased the employee wage ceiling by ARS 2.5 million to ARS 7.1 million, effective December 1, 2022.
Austria
Made the following changes, effective January 1, 2023:
Income Tax:
Increased the bracket thresholds for the resident table. The threshold for the 55% top bracket remains EUR 1,000,000.
Decreased the bracket thresholds for the nonresident table. The threshold for the 55% top bracket decreased by EUR 567 to EUR 990,433.
Increased the household credit for the following:
One dependent by EUR 26 to EUR 520.
Two dependents by EUR 35 to EUR 704.
Each additional dependent by EUR 12 to EUR 232.
Increased the employee transportation allowance by EUR 21 to EUR 421.
Social Security: Changed the following for recurring and non-recurring income:
Increased the wage ceilings by EUR 2,160 to EUR 70,200 and EUR 360 to EUR 11,700, respectively.
Decreased the employer rates by 0.1% to 21.03% and 20.53%, respectively.
Belgium
Income Tax: Increased the following based on CPI changes, effective January 1, 2023:
Tax bracket and de minima table thresholds. The thresholds for the 50% top brackets increased by EUR 4,070 to EUR 46,440.
Maximum income allocation to non-working spouse by EUR 1,100 to EUR 12,550.
Standard business deduction limit by EUR 480 to EUR 5,520.
Personal exemption by EUR 890 to EUR 10,160.
Dependent exemptions. The exemption for one child increased by EUR 160 to EUR 1,850.
Brazil
Social Security: Increased the employee contribution bracket thresholds, effective January 1, 2023. The 14% top bracket applies to income between BRL 46,283 and BRL 90,090.
Canada
Changed the following, effective January 1, 2023:
Alberta
Income Tax: Increased the following:
Tax bracket thresholds. The threshold for 15% top bracket increased by CAD 19,331 to CAD 341,502.
Personal, spouse, and dependent amounts by CAD 1,189 to CAD 21,003.
New Brunswick
Income Tax: Made the following changes to the tax table. The top bracket remains applicable for income over CAD 176,756.
Removed the 17.84% bracket applicable for income over CAD 155,150 to form a four bracket table.
Decreased the rates for all brackets except for the lowest 9.4% bracket. The rate for the top bracket decreased by 0.8% to 19.5%.
Prince Edward Island
Income Tax: Increased the personal amount by CAD 750 to CAD 12,000.
Chile
Increased the following, effective January 1, 2023:
Income Tax: Tax unit (UTM) to CLP 61,157, which increased the tax bracket thresholds. The threshold for the 40% top bracket increased by CLP 13.4 million to CLP 227.5 million.
Social Security: Development Unit (UF) to CLP 34,818, which increased the following wage ceilings:
Employment insurance by CLP 3.1 million to CLP 51.2 million.
Other contributions by CLP 2.1 million to CLP 34.1 million.
Colombia
Made the following changes, effective January 1, 2023. COP amounts shown in millions:
Income Tax:
Tax unit (UVT) to COP 0.042, which increased the following:
Tax bracket thresholds. The threshold for the 39% top bracket increased by COP 137 to COP 1,315.
Maximum voluntary pension deduction by COP 17 to COP 161.
Dependent allowance by COP 2 to COP 16.
Decreased the basic allowance by UVT 2,090 to UVT 790, or COP 76 to COP 33.5.
Social Security: Monthly minimum salary to COP 1.16, which increased the following:
Wage ceiling by COP 48 to COP 348.
Employee pension solidarity bracket thresholds. The threshold for the 2% top bracket increased by COP 38 to COP 278.
Costa Rica
Increased the following, effective January 1, 2023:
Income Tax: Tax bracket thresholds. The threshold for the 25% top bracket increased by CRC 4.8 million to CRC 58.1 million.
Social Security: Employee and employer contribution rates by 0.17% to 10.67% and 26.67%, respectively.
Croatia
Social Security: Increased the employee wage ceiling by EUR 7,301 to EUR 98,437, effective January 1, 2023.
Denmark
Income Tax: Increased the following, unless stated otherwise, effective January 1, 2023:
Threshold at which the 15% high tax bracket applies from DKK 16,400 to DKK 568,900.
Personal allowance by DKK 1,400 to DKK 48,000.
Maximum employment allowance by DKK 4,000 to DKK 45,600.
Maximum job allowance and threshold by DKK 100 to DKK 2,700 and DKK 6,000 to DKK 208,700, respectively.
Maximum pension and extra pension deductions by DKK 1,700 to DKK 60,900 and DKK 2,300 to DKK 77,900, respectively.
Expatriate concession minimum salary by DKK 2,100 to DKK 72,500.
Maximum travel expense deduction by DKK 900 to DKK 30,500.
Corrected the base to calculate the labor market tax to exclude employee social and pension contributions. The previous calculation resulted in a potential tax overstatement.
Ecuador
Income Tax: Increased the following, effective January 1, 2023:
Tax bracket thresholds. The threshold for the top 37% bracket increased by USD 3,644 to USD 103,644.
Maximum personal credit by USD 61 to USD 1,069.
El Salvador
Social Security: Made the following changes, effective January 1, 2023:
Changed the wage base for social and pension contributions to use Base Salary instead of assignment income.
For pension:
Removed the wage ceiling of USD 84,541.
Increased employer rate by 1% to 8.75%.
Finland
Increased the following, effective January 1, 2023:
Income Tax: The tax table from four to six brackets. The lowest bracket of 13.26% is applicable to income under EUR 18,100 and the top bracket of 44.5% is applicable to income over EUR 78,500.
Social Security:
Health insurance:
Employee daily allowance rate and threshold by 0.25% to 1.96% and EUR 575 to EUR 15,703, respectively.
Employee nursing rate by 0.07% to 0.6%.
Employer rate by 0.19% to 1.53%.
Unemployment insurance rate by 0.01% to 2.06%.
France
Increased the following, effective January 1, 2023:
Income Tax:
Tax bracket thresholds. The threshold for the 45% top bracket increased by EUR 8,658 to EUR 168,994.
Phaseout thresholds for the low-income credit (La Décote) by EUR 43 to EUR 833 and by EUR 71 to EUR 1,378 for single and married employees, respectively.
Income thresholds limiting coefficient relief. The threshold increased by EUR 2,157 to EUR 42,076 for single employees with one dependent.
Social Security:
Ceiling 1 amount by EUR 2,856 to EUR 43,992, which increased the ceiling 3 amount by EUR 11,424 to EUR 175,968.
Work accident contribution rate by 0.03% to 2.24%.
Germany
Income Tax:
Increased the following, effective January 1, 2023:
Tax bracket thresholds. The threshold for the 45% top bracket remains EUR 277,825.
Standard employment deduction by EUR 30 to EUR 1,230.
Child deduction by EUR 282 to EUR 3,012.
Child deduction income thresholds.
Pension portion of the Allowable Social Tax deduction by 12% to 100%, or a maximum deduction of EUR 8,147.
Surcharge threshold by EUR 587 to EUR 17,543.
Child benefit to EUR 250 per child per month.
Corrected the following:
Child deduction and benefit repaid. When the Calculate Child Deduction? input is set to Automatic or Automatic and add child benefit, the previous calculation resulted in a potential understatement of tax for single employees and overstatement for married employees.
Employer Pension Contribution and Employer Paid Medical & Dental to be taxable for hypothetical tax and social security of outbound nonresidents. The previous calculation resulted in a potential understatement.
Social Security: Increased the following, effective January 1, 2023:
Pension wage ceiling for East and West Germany by EUR 4,200 to EUR 85,200 and EUR 3,000 to EUR 87,600, respectively.
Unemployment rate by 0.1% to 1.3%.
Health insurance rate by 0.15% to 8.1% and wage ceiling by EUR 1,800 to EUR 59,850.
Employee Old Age rate for childless individuals by 0.1% to 0.35%; increasing the Nursing rate to 1.875%.
Greece
Income Tax: Removed the special solidarity contribution, repealed effective January 1, 2023.
Recalculations of cost estimates with the year label 2021 and 2022 will continue to include the contribution.
Guinea
Income Tax: Corrected the tax table by inserting the 8% bracket in between the 5% and 10% brackets. The new bracket, effective January 1, 2022, is applicable to income between GNF 3 million and GNF 5 million. The threshold for the top bracket of 20% remains GNF 20 million.
Ireland
Income Tax: Increased the following, unless stated otherwise, effective January 1, 2023:
Tax bracket thresholds. The threshold for the 40% top bracket increased by EUR 3,200 to EUR 40,000 for single employees.
Threshold for the Universal Social Charge 4.5% bracket by EUR 1,625 to EUR 22,920. The threshold for the top bracket of 8% remains EUR 70,044.
Special Assignee Relief lower threshold by EUR 25,000 to EUR 100,000.
Personal and employee PAYE credits by EUR 75 to EUR 1,775.
Extended the outbound Foreign Earnings Deduction to calculate by three years to include cost estimates with Year Column Label up to 2025.
Israel
Increased the following, effective January 1, 2023:
Income Tax: Based on CPI changes:
Tax bracket thresholds. The threshold for the 50% top bracket increased by ILS 35,040 to ILS 698,280.
Credit point value by ILS 144 to ILS 2,820.
Social Security: Wage ceiling by ILS 28,680 to ILS 569,580.
Ivory Coast
Social Security: Increased the social security wage ceiling by XOF 8.1 million to XOF 40.5 million, effective January 1, 2023.
Kazakhstan
Increased the minimum monthly salary by KZT 10,000 to KZT 70,000, which increased the following, effective January 1, 2023:
Income Tax: Basic allowance by KZT 720,000 to KZT 840,000.
Social Security:
Wage ceilings:
Employee pension by KZT 9 million to KZT 63 million.
Employer social security by KZT 840,000 to KZT 5.88 million.
Medical insurance by KZT 1.2 million to 8.4 million.
Corrected the employee and employer medical insurance contribution rates to 2% and 3%, respectively.
Luxembourg
Made the following changes, effective January 1, 2023:
Income Tax: Decreased the expatriate concession minimum salary by EUR 25,000 to EUR 75,000.
Social Security:
Increased the pension wage ceiling by EUR 4,441 to EUR 143,244.
Decreased the employer mutual health care contribution rate by 0.14% to 2.84%.
Mexico
Social Security: Increased the following, effective January 1, 2023:
Wage ceiling by MXN 68,620 to MXN 946,628.
Unemployment component of the employer contribution by 1.09% to 4.24%. The total contribution rate increased to 36.69% for income below MXN 37,865.
Morocco
Income Tax: Increased the professional expense deduction rate and maximum by 5% to 25% and MAD 5,000 to MAD 35,000, respectively, effective January 1, 2023.
Netherlands
Made the following changes, effective January 1, 2023:
Income Tax:
Reduced the rate for the lower bracket by 0.14% to 36.93%. This also reduces the rate imposed on income below the employee social security wage ceiling to 9.28%. The rate for the top bracket remains at 49.5%.
Tax bracket thresholds. The threshold for the top bracket increased by EUR 3,633 to EUR 73,031.
Employment credit rates, bracket thresholds, and phaseout rate. The maximum credit increased by EUR 792 to EUR 5,052.
General credit amount, phaseout threshold, and phaseout rate. The maximum credit increased by EUR 182 to EUR 3,070.
Minimum salary to qualify for the 30% ruling concession increased by EUR 3,553 to EUR 59,934.
Social Security:
Increased the employee and employer wage ceilings by EUR 3,231 to EUR 38,703 and EUR 7,254 to EUR 66,956 respectively.
Decreased the employer contribution rate by 0.7% to 23.38%. The updated rates for each contribution are:
06% Disability, including Work Resumption of 1.45%.
64% Unemployment.
68% Health.
Norway
Made the following changes, effective January 1, 2023:
Income Tax:
Increased the top three tax rates by 0.1% and adjusted bracket thresholds. The threshold for the 17.5% top bracket decreased by NOK 500,000 to NOK 1.5 million.
Decreased the maximum deduction by NOK 5,500 to NOK 104,450.
Increased the personal allowance by NOK 21,350 to 79,600.
Social Security: Decreased the employee contribution rate by 0.1% to 7.9%.
Peru
Income Tax: Increased the tax unit to PEN 4,950, effective January 1, 2023, which increased the following:
Tax bracket thresholds. The threshold for the 30% top bracket increased by PEN 15,750 to PEN 222,750.
Standard deduction by PEN 2,450 to PEN 34,650.
Poland
Social Security: Increased the pension and disability wage ceilings by PLN 30,390 to PLN 208,050, effective January 1, 2023.
Portugal
Income Tax: Made the following changes, effective January 1, 2023:
Decreased the rate for the second bracket by 2% to 21%.
Increased thresholds. The threshold for the 48% top bracket increased by EUR 3,825 to EUR 78,834.
Reduced the child credit amount by EUR 300 to EUR 600. The portion removed is only available for children under 3 years of age.
Senegal
Corrected the following from law enacted in May 2022 with effective date retroactive to January 1, 2022, unless stated otherwise. All amounts in millions:
Income Tax: Added a new 43% top bracket applicable to income over XOF 50. Previously, the rate of 40% applies resulting in a potential understatement of tax.
Social Security: Increased the following:
Health contribution rates and wage ceiling by 4.5% to 7.5% and XOF 2.24 to XOF 3, respectively.
Pension wage ceiling to XOF 1.3 million effective June 1, 2022.
Serbia
Increased the following, effective January 1, 2023:
Income Tax: The wage tax deduction by RSD 28,944 to RSD 260,544.
Social Security: The wage ceiling by RSD 710,640 to over RSD 6 million.
Slovakia
Social Security: Increased the wage ceiling by EUR 6,552 to EUR 101,724, effective January 1, 2023.
Slovenia
Income Tax: Increased the following, effective January 1, 2023:
Top tax rate by 5% to 50%.
Personal deduction by EUR 500 to EUR 5,000.
Dependent deductions. The amount increased by EUR 188 to EUR 2,698 for the first dependent.
South Korea
Made the following changes, effective January 1, 2023:
Income Tax:
Increased the thresholds for the two lowest brackets. The 45% top bracket remains applicable to income over KWN 1 billion.
Decreased the maximum pension credit by KWN 120,000 to KWN 720,000.
Social Security: Increased the health insurance wage ceiling by KWN 69.5 million to KWN 1.32 billion.
Spain
Social Security: Increased the wage ceiling by EUR 4,273 to EUR 53,946, effective January 1, 2023.
Sweden
Made the following changes, effective January 1, 2023:
Income Tax:
Increased the price base by SEK 4,200 to SEK 52,500, which increased the following:
Employment income credit thresholds. The maximum credit threshold increased by SEK 33,936 to SEK 424,200 and the phaseout threshold increased by SEK 56,868 to SEK 710,850.
Personal allowance amounts and thresholds. The maximum allowance increased by SEK 3,234 to SEK 40,425 and the phaseout threshold increased by SEK 13,062 to SEK 163,275.
Maximum employer voluntary pension deduction by SEK 42,000 to SEK 525,000.
Increased the maximum tax-exempt income by SEK 57,800 to SEK 598,500.
Corrected the following:
Employment income credit table. The previous calculation resulted in a potential overstatement of municipal tax.
Employee voluntary pension contribution to be nondeductible. The previous calculation resulted in a potential understatement of tax.
Social Security: Increased the employee wage ceiling by SEK 26,631 to SEK 599,601.
Switzerland
Increased the following, unless stated otherwise, effective January 1, 2023:
Income Tax:
Insurance premium deductions for single and married employees by CHF 100 to CHF 1,800 and 3,600, respectively.
Deduction for spouse and per child by CHF 100 to CHF 2,700 and CHF 6,600, respectively.
Child credit by CHF 4 to CHF 255.
Social Security:
Pillar II pension contribution minimum thresholds by CHF 630 to CHF 25,725 and maximum by CHF 2,160 to CHF 88,200.
Removed the additional 0.5% employment contribution.
Geneva and Neuchatel family allowance contribution rates by 0.01% to 2.41% and by 0.02% to 2.47%, respectively.
Geneva
Income Tax: Made the following changes:
Increased the bracket thresholds based on CPI changes. The threshold for the 19% top bracket increased by CHF 2,367 to CHF 613,839.
Updated the withholding table which incorporates the Federal, Cantonal and Communal rates.
Neuchatel
Income Tax: Updated the withholding table which incorporates the Federal, Cantonal, and Communal rates.
Schaffhausen
Income Tax: Decreased the cantonal and municipal tax coefficient by 3% to 91% and 1% to 92%, respectively.
Vaud
Income Tax: Made the following changes:
Increased the following:
Tax bracket thresholds. The threshold for the 15.5% top bracket increased by CHF 7,800 to CHF 282,800.
Insurance premium deduction for single employees by CHF 1,600 to CHF 4,800.
Additional deduction for single-parent families by CHF 100 to CHF 2,800.
Updated the withholding table which incorporates the Federal, Cantonal, and Communal rates.
Zug
Income Tax: Increased the following:
Personal allowance by CHF 400 to CHF 11,600.
Child deduction by CHF 400 to CHF 12,400.
Insurance premium for married employees by CHF 100 to CHF 6,700.
Taiwan
Social Security:
Increased the workers insurance rate by 0.5% to 12%, effective January 1, 2023.
Changed the health insurance contribution as follows:
Increased the monthly threshold by TWD 37,500 to TWD 219,500, effective July 1, 2022.
For the employer portion,
Decreased the average dependent number by 0.01 to 0.57, effective January 1, 2023.
Corrected the rate for single to 1.57. Previously, no contribution was calculated.
Corrected the employer supplementary health contribution as follows:
Removed the 3.1% contribution on base salary. Previously, this contribution duplicated the health insurance contribution.
Changed the contribution on bonus with the wage ceiling calculated as the lesser of the monthly threshold and base salary. Previously, only the monthly threshold was used.
Tanzania
Social Security: Decreased the employer workers’ compensation contribution rate from 1% to 0.5%, effective July 1, 2022.
Turkey
Increased the following, effective January 1, 2023:
Income Tax:
Tax bracket thresholds. The threshold for the 40% top bracket increased by TRY 1.02 million to TRY 1.9 million.
Maximum wage exemption and voluntary pension deductions by TRY 42,444 to TRY 120,096.
Social Security: Wage ceiling by TRY 318,330 to TRY 900,720.
United Kingdom
Income Tax: Decreased the threshold for the 45% bracket by GBP 24,860 to GBP 125,140, effective April 6, 2023. The lower threshold will apply as follows:
Compensation calculations with effective date is April 1, 2023 or later. Effective date used as entered in the Assignment Package, Assignment Package Batch, Compensation Calculation, or Compensation Batch.
Cost estimates with year column label of 2023 or later. Year label is defaulted based on the assignment actual or scheduled start date.
Otherwise, the threshold of GBP 150,000 continues to operate.
United States
Arkansas
Income Tax: Increased the standard deduction for single employees by USD 70 to USD 2,270, effective January 1, 2023.
Colorado
Income Tax: Decreased the flat rate by 0.15% to 4.4%, retroactively effective January 1, 2022.
Illinois
Income Tax: Increased the personal exemption by USD 200 to USD 2,625, effective January 1, 2023.
Iowa
Income Tax: Changed the following, effective January 1, 2023:
Corrected the tax table from a 6% flat rate to a four-bracket table ranging from 4.4% to 6% rate. The top bracket is applicable to income over USD 75,000 for single employees.
Removed the standard deduction.
Maine
Income Tax: Increased the following for all filing status based on CPI changes, effective January 1, 2023. Amounts apply to single employees:
Bracket thresholds. The threshold for the 7.15% top bracket increased by USD 3,600 to USD 58,050.
Personal exemption by USD 250 to USD 4,700.
Personal exemption phaseout thresholds by USD 18,900 to USD 305,100.
Deduction phaseout threshold by USD 5,650 to USD 91,500.
Massachusetts
Income Tax: Added a second bracket with a 9% rate for income over USD 1 million, effective January 1, 2023. All income was previously taxed at 5%.
Missouri
Income Tax: Updated the following, effective January 1, 2023:
Removed the 1.5% and 5.35% brackets and decreased the new top bracket rate by 0.05% to 4.95%.
Increased bracket thresholds based on CPI changes. The threshold for the 4.9% tax bracket increased by USD 602 to USD 8,449.
Montana
Income Tax: Increased the following, effective January 1, 2023:
Tax bracket thresholds. The threshold for the 6.75% top bracket increased by USD 1,800 to USD 21,600.
Minimum and maximum standard deductions for all filing status. The deductions increased by USD 200 to USD 2,460 and USD 450 to USD 5,540, respectively, for single employees.
Personal exemption by USD 250 to USD 2,960.
North Carolina
Income Tax: Decreased the flat tax rate by 0.24% to 4.75%, effective January 1, 2023.
Oregon
Income Tax: Increased the federal tax deductions based on CPI changes, effective January 1, 2023. The maximum amount deductible increased by USD 750 to USD 7,800.
South Carolina
Income Tax: Increased the following based on CPI changes, effective January 1, 2023:
Tax bracket thresholds. The threshold for the 6.5% top bracket increased by USD 1,130 to USD 17,170.
Dependent exemption by USD 310 to USD 4,740.
Uruguay
Income Tax: Increased the tax unit (BPC) to UYU 5,660, which increased the tax bracket thresholds, effective January 1, 2023. The threshold for the 36% top bracket increased by UYU 684,480 to UYU 7.8 million.
Zambia
Income Tax: Changed the following, effective January 1, 2023:
Increased tax bracket thresholds. The threshold for the 37.5% top bracket increased by ZMW 24,000 to ZMW 106,800.
Decreased the second bracket rate by 5% to 20%.
Income Tax Treaties
Added the following treaties:
Treaty Countries
|
Effective Date
|
Chile – India
|
Jan 1, 2023 / Apr 1, 2023 (IN)
|
Oman – Qatar
|
Jan 1, 2023
|
Recordings
Resources
Help Center articles updated this release: