Key Features Features Updates Authorities Resources
Key Features
New Countries
The countries listed below are now available in the Tax Engine. The Calculation Detail Report provides details of rates applied for income, social and payroll tax. See Features section below for more information.
If your site is configured to automatically apply the Generic Tax Estimator for these countries, navigate to the System Configuration > Countries screen and uncheck the Use Generic Estimator input to use the tax engine. See help center for more details.
If your site uses an alternative data source for these countries, a configuration change may be necessary to use the tax engine. Speak to your Client Solutions Manager for more details.
Features
New Lite Countries
Tax costs can now be generated for a further 17 “Lite” countries for both Cost Estimates and Compensation Calculations. Lite tax estimators facilitate the automated calculation of income, social (employee and employer) and payroll taxes. Progressive tax tables, relevant standard deductions & credits, surtaxes, income tax treaties, and social security agreements are applied. Line items are treated as taxable.
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: Corrected the maximum deduction for employee voluntary pension contributions to ARS 42,921, effective January 1, 2022. Previously, taxable income may have been overstated by a maximum of ARS 2,921.
Australia
Social Security: Increased the superannuation contribution rate by 0.5% to 11% and the wage ceiling by AUD 8,200 to AUD 249,080, effective July 1, 2023.
Brazil
Increased the following, effective May 1, 2023:
Income Tax: Threshold for the 0% tax free bracket by BRL 208 to BRL 2,112.
Social Tax: Threshold for the lowest 7.5% employee contribution bracket by BRL 18 to BRL 1,320.
Canada
Manitoba
Income Tax: Increased the personal amount by CAD 4,150 to CAD 15,000, effective January 1, 2023.
Quebec
Income Tax: Decreased the rates for the first and second brackets by 1% to 14% and 19% respectively, effective January 1, 2023.
Chile
Social Security: Decreased the disability and life contribution rate by 0.3% to 1.55%, effective January 1, 2023.
Dominican Republic
Social Security: Increased the following wage ceilings, effective April 1, 2023:
Pension by DOP 756,000 to DOP 5.8 million.
Health by DOP 378,000 to DOP 2.9 million.
Finland
Income Tax: Corrected the tax displayed for the first bracket on the Income Tax Details page. Previously, an incorrect value was displayed but the calculated tax value on the Calculation Details page was correct.
Ghana
Income Tax: Made the following changes, effective January 1, 2023.
Added a 35% top bracket for income over GHS 600,000.
Increased bracket thresholds. The threshold for the previous 30% top bracket increased by GHS 444 to GHS 240,444.
Hong Kong
Income Tax: Increased the child allowance by HKD 10,000 to HKD 130,000, effective April 1, 2023.
India
Income Tax: Added the Select Regime tax position to calculate taxes using the Simplified or Legacy regime for equalized and non-equalized assignments. The default position is the Legacy regime. Update your Tax Position Set to default the Simplified regime.
Simplified regime, effective April 1, 2023, calculates taxable income by applying a standard deduction of INR 50,000 and a six-tiered tax table with a 30% top bracket for income exceeding INR 1.5 million.
Legacy regime calculates taxable income by applying personal and standard deductions up to INR 200,000 and a four-tiered tax table with a 30% top bracket for income exceeding INR 1 million.
Japan
Income Tax: Reduced the special tax for reconstruction by 1% and added a new surtax of 1%. Total surtax remains at 2.1%.
Social Security: Increased the following insurance contribution rates, effective April 1, 2023.
Health by 0.18% to 5.91%.
Employee and employer unemployment by 0.2% to 0.6% and 0.35% to 0.95%, respectively.
Jordan
Social Security: Increased the wage ceiling by JOD 1,728 to JOD 42,456, effective January 1, 2023.
Malaysia
Income Tax: Updated the tax table as follows, effective January 1, 2023. The 30% top bracket remains imposed on income over MYR 2 million:
Reduced the 6%, 11% and 19% brackets by 2%, applied to income under MYR 100,000.
Removed the 24% and 24.5% brackets for income between MYR 100,000 and MYR 400,000.
Lowered the thresholds for the 25%, 26% and 28% brackets to MYR 100,000, MYR 400,000, and MYR 600,000, respectively.
Saudi Arabia
Social Security: Corrected the social insurance contribution rates for outbound assignments by a decrease of 0.25% to 9.75% for employees and employers. Employers also contribute to occupational hazard insurance; thereby bringing their total contribution rate to 11.75%.
South Korea
Social Security: Increased the pension wage ceiling by KRW 4.4 million to 70.8 million, effective July 1, 2023.
Spain
Income Tax: Corrected the expatriate concession to omit the personal and family credit for inbound residents when Qualifies for Expatriate Tax Regime? is set to Yes. The previous calculation resulted in a maximum understatement of EUR 3,974 for employees with four or more dependents.
Switzerland
Income Tax: Corrected the tax table by increasing the bracket thresholds, effective January 1, 2023. The threshold for the 11.5% top bracket increased by CHF 14,500 to CHF 769,700.
United States
Michigan
Income Tax: Made the following changes, effective January 1, 2023:
Decreased the tax rate by 0.2% to 4.05%.
Increased the personal exemption by USD 400 to USD 5,400.
North Dakota
Income Tax: Removed two brackets to create a three-bracket table, effective January 1, 2023. The new 2.5% top bracket applies to income over USD 225,975 for single employees.
Uruguay
Social Security: Added an employer work accident insurance contribution of 3%.
Vietnam
Social Security: Increased the social and health insurance wage ceilings by VND 74.4 million to VND 432 million, effective July 1, 2023.
Social Security Agreements
Added the following agreements, effective April 1, 2023. Both agreements have a 48-month coverage threshold.
Chile–Romania
Serbia–Tunisia
Authorities
Search “supported authorities” or "supported subauthorities" in the help center for a full list of our 113 supported authorities, and 70 supported subauthorities, respectively.
Resources
Help Center articles updated this release: