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Equus Tax Engine v.24.3 released 30 May 2024

Features Updates Supported Authorities Resources Click for full PDF release notes Features The current release includes several new features which significantly enhance the functionality of the Eq

Updated over 2 weeks ago

Features Updates Supported Authorities Resources

Features

The current release includes several new features which significantly enhance the functionality of the Equus Platform.

Equus Tax Position Sets

Updated the three tax position sets with Equus’ recommended positions. Values from tax position sets populate the inputs on the Tax Calc Inputs tab of the Cost Estimate Wizard. Users can change the populated value if desired. The three Equus sets available in the Equus Platform are:

  • Equus Long Term Assignment Tax Positions

  • Equus Short Term Assignment Tax Positions

  • Equus Permanent Transfer Tax Positions

The key update includes changes to the Tax Resident position:

  • Values were added for Essential countries added in 2023. The values for the Short Term Tax Position Set were changed to Yes, and values for the Long Term and Permanent Transfer Tax Position Set were changed to No.

  • Values were changed for territorial countries in the Short Term set from Yes to No. See the list of impacted territorial countries in Appendix A.

Other changes to each position set are listed in Appendix B.

Tax positions for Cost Estimates created from templates mapped to the Equus Tax Position Sets will populate with the new values. Existing Cost Estimates or those created from templates mapped to tailored tax position sets are not impacted by this change.

France

Income Tax

Added a cohabitating partners option to the Filing Status tax position. This option removes the 0.5 coefficient share available to single parent households.

Colombia

Social Security

Added the exempt Pension Contributions? tax position to exempt inbound employees from contributing to pension and pension solidarity when set to Yes. Previously, contributions were exempt when the employee contributed to home social security regimes. As a result of this change, contributions will calculate in the host unless the tax position is set to Yes or a social security agreement applies.

Updates

Updates include calculation and rate changes resulting from inflation adjustments, legislative changes, and review of supported authorities to reflect current tax law. Effective dates indicate when the changes enter into force. Amounts are annual unless stated otherwise.

Australia

Made the following changes, effective July 1, 2024:

Income Tax

  • For resident taxpayers:

  • Decreased the first and second tax bracket rates by 3% to 16% and 2.5% to 30%, respectively.

  • Increased the threshold for the 37% and 45% brackets by AUD 15,000 to AUD 135,000 and AUD 10,000 to AUD 190,000, respectively.

  • For nonresident taxpayers:

  • Decreased the first tax bracket rate by 2.5% to 30%.

  • Increased the tax bracket thresholds. The threshold for the 45% top bracket increased by AUD 10,000 to AUD 190,000.

Social Security

Increased the employer superannuation contribution rate by 0.5% to 11.5% and the wage ceiling by AUD 11,200 to AUD 260,280.

Austria

Income Tax

Corrected the allocation of recurring and non-recurring income when the exemption method of double tax relief applies and Calculate Non-Recurring Compensation is selected. When the tax position is set as Yes, non-recurring income is limited to the lowest of these annual amounts: 1) one-seventh of base salary, 2) one-sixth of recurring income (i.e. gross income less one-seventh of base salary) or 3) EUR 83,333. The resulting lowest value is allocated as non-recurring income, which is then sourced to Austria and the host country using workdays.

Previously, the recurring income amount (#2) was decreased by foreign-sourced income, resulting in a potential overstatement of tax.

Bahamas

Social Security

Increased the social security contribution rates for employees and employers by 0.75% each to 4.65% and 6.65%, respectively, effective July 1, 2024.

Bangladesh

Income Tax

Corrected the calculation for taxable income to include a general exclusion of 33% on assignment income up to BDT 450,000.

Bolivia

Increased the following, based on minimum wage changes, effective January 1, 2024:

Income Tax

  • Standard deduction by BOB 3,312 to BOB 60,000.

  • Personal credit by BOB 431 to BOB 7,800.

Social Security

  • Wage ceiling by BOB 99,360 to BOB 1.8 million.

Brazil

Income Tax

Increased the 0% bracket threshold by BRL 147 to BRL 2,259, effective February 1, 2024.

Costa Rica

Income Tax & Social Security

Added a deduction for employee and employer voluntary pension contributions for outbound assignments, capped at 10% of assignment income.

Ecuador

Income Tax

Increased the tax bracket thresholds, effective January 1, 2024. The threshold for the 37% top bracket increased by USD 1,619 to USD 107,199.

Egypt

Social Security

Corrected the calculation for inbound assignments when Calculate Social Taxes is set to Automatic and an agreement does not apply. Previously, social taxes did not calculate for this scenario, resulting in a potential understatement of tax.

France

Income Tax

Corrected the income thresholds limiting coefficient relief. The threshold increased by EUR 4,729 to EUR 44,095 for single employees with one dependent.

Ghana

Income Tax

Made the following changes:

  • Increased the tax bracket thresholds, effective January 1, 2024. The threshold for the 30% bracket was adjusted down by GHS 5,000 so that the threshold for the 35% top bracket remains at GHS 600,000.

  • Corrected the Income Tax Details to display the 30% bracket. Previously, this bracket was omitted, and the sum of all brackets was less than the hypo and actual tax displayed.

Honduras

Social Security

Increased the employer unemployment insurance wage ceiling by HNL 40,478 to HNL 453,525, effective January 1, 2024.

Hong Kong

Income Tax

Added a second bracket to the standard rate. In addition to the existing 15% bracket, the new 16% bracket applies to income above HKD 5 million, effective April 1, 2024.

Iraq

Income Tax

Corrected the annual personal allowance when Region is set to Kurdistan by increasing it from IQD 3.5 million to IQD 12 million.

Israel

Social Security

Made the following changes:

  • Enhanced the calculation to apply nonresident rates to temporary assignments and resident rates to permanent assignments.

  • Increased the wage ceiling by ILS 18,780 to ILS 588,360, effective January 1, 2024.

Italy

Income Tax

Corrected the exemption rate to 60% for inbound employees with one or more dependents when Qualifies for Inbound Concession? is Yes - 2024 or After. Previously, the additional relief for employees with dependents was not calculated, resulting in a potential tax overstatement.

Jamaica

Income Tax

Increased the 0% bracket threshold by JMD 199,992 to JMD 1.7 million, effective April 6, 2024.

Japan

Social Security

Decreased the health insurance contribution rate by 0.12% to 5.79%, effective April 1, 2024.

Jordan

Social Security

Increased the wage ceiling by JOD 888 to JOD 43,344, effective January 1, 2024.

Kenya

Income Tax

Corrected the personal relief credit to KES 28,800 for all employees. Previously, the credit was doubled for married employees, resulting in a tax understatement. Because single and married employees have the same tax treatment, the Filing Status tax position is removed from this tax estimator.

Malawi

Income Tax

Increased the tax bracket thresholds, effective April 1, 2024. The threshold for the 35% top bracket increased by MWK 600,000 to MWK 30.6 million.

Mauritius

Income Tax

Replaced the standard deduction of MUR 325,000 with a dependent deduction of MUR 110,000 for employees with one or more dependents. This legislative change was omitted when the tax estimator was launched in v.23.4, resulting in a tax understatement.

Mongolia

Social Security

Increased the employee wage ceiling by MNT 13.2 million to MNT 79.2 million, effective January 1, 2024.

Nigeria

Income Tax

Corrected the base for the Consolidated Relief Allowance to remove employees’ contributions to pension and housing funds. The previous calculation resulted in a potential understatement of tax.

Social Security

Narrowed the pension contribution wage base to include only Base Salary and Other Compensation line items.

Oman

Social Security

Made the following changes, effective January 1, 2024:

  • Increased the outbound employer contribution rate by 2% to 14.5%.

  • Added a wage ceiling of OMR 36,000 to old age and workplace injury contributions of 7.5% for employees and 12% for employers.

  • Added an uncapped 3% employer contribution for inbound employees.

Philippines

Income Tax

Corrected the inbound nonresident calculation to omit the exempt income deduction for 13th month pay up to PHP 90,000. The previous calculation resulted in a potential understatement of tax.

Social Security

Increased the Home Development Mutual Fund contribution by PHP 1,200 to PHP 2,400, effective February 1, 2024.

Singapore

Social Security

Increased the ordinary wage ceiling for calculations with a Year Column Label of 2023 or earlier by SGD 6,000 to SGD 81,600.

Slovenia

Social Security

Added an employee contribution of EUR 420 for mandatory health insurance, effective January 1, 2024.

South Korea

Social Security

Increased pension wage ceiling by KRW 3.2 million to KRW 74 million, effective July 1, 2024.

Spain

Income Tax

Corrected the Large Family credit:

  • Excluded inbound residents from EEA countries or when Qualifies for Expatriate Tax Regime? is set to Yes.

  • Removed the EUR 2,400 cap for employees with more than five dependents.

Togo

Social Security

Added health insurance contributions at 5% of assignment income for employees and employers, effective January 1, 2024.

United States

Income Tax

Made the following changes:

  • Updated the high-cost locations and limitations on host housing expenses eligible for exemption, effective January 1, 2024. Locations not deemed high cost use the default of USD 37,950.

  • Corrected the maximum tax relief for employee and employer voluntary pension contributions to include the USD 7,500 catch-up contribution for employees 50 years or older. The previous calculation may have resulted in an overstatement of tax.

Georgia

Income Tax

Updated the following, effective January 1, 2024:

  • Decreased the tax rate by 0.10% to 5.39%.

  • Increased the dependent exemption by USD 1,000 to USD 4,000.

Idaho

Income Tax

Updated the following for all filing status, effective January 1, 2024:

  • Decreased the tax rate by 0.105% to 5.695%.

  • Increased the 0% bracket threshold by USD 2,174 to USD 4,674 for single employees.

Utah

Income Tax

Decreased the tax rate by 0.3% to 4.55%, effective January 1, 2024.

Social Security Agreements

Corrected the host social security calculation when the country has an agreement with Albania, Estonia, Latvia, or Mauritius and when Calculate Social Taxes? is Automatic. Previously, when eligibility criteria were met, the host contribution calculated when it should have been exempted.

Note: To view Appendixes please download the attached PDF copy of the release note.

Supported Authorities

Search “supported authorities” and "supported subauthorities" in the help center for a full list of our 223 supported authorities including:

  • 153 Countries

  • 50 American States and the District of Columbia

  • 10 Canadian Provinces

  • 9 Swiss Cantons

Resources

Help Center articles updated this release:

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