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Equus Tax Engine v.25.2 released 27 March 2025

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

Updated over 2 weeks ago

Key Features Updates Supported Authorities Resources

Key Features

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

Inpatriate Concession Limitation: France

The inpatriate concession has been enhanced to incorporate a reference salary to limit tax relief. Previously, when Qualifies for Inpat Concession? was set to Yes, allowances were treated as nontaxable without restriction. This enhancement ensures that the tax relief granted under this concession is subject to a reference salary benchmark, aligning with regulatory requirements.

New Line Item Input: Reference Salary

A new Reference Salary input has been introduced, which must be configured as a line item in cost estimate templates for French inpatriates. This input represents the salary of a local employee with equivalent responsibilities to the inpatriate. It is used to determine the Reference Taxable Income, which establishes a minimum taxable income threshold for the inpatriate. This ensures that assignment-related payments treated as nontaxable do not reduce taxable income below the reference salary level.

Cost Estimate Calculation Enhancements

A new Taxable Supplements section has been added to the France Cost Estimate Calculation Detail Report. This section appears when Qualifies for Inpat Concession? is set to Yes and a reference salary is entered. The report now includes:

  • A side-by-side comparison of the inpatriate’s taxable income and the derived Reference Taxable Income.

  • Adjustments which ensure that the inpatriate's final taxable income is not lower than the Reference Taxable Income.

Regional Tax Tables: Spain

Spanish income tax consists of a national and a regional tax. The federal government sets the national tax, while each autonomous regional authority sets its own tax rates and thresholds. Some regions have elected to use rates and thresholds consistent with the national tax.

New Tax Position: Region

A new Region input has been introduced which allows for the calculation of Default or Madrid regional tables. The Default regional table has the same rates and thresholds as the national tax table and continues to be the default behavior for all cost estimates to or from Spain if Region is not designated.

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

Made the following changes, effective January 1, 2025:

  • Corrected these deduction calculations to include 13th month pay and increased amounts as follows:

  • Basic by ARS 825,233 to ARS 3,916,268.

  • Spouse by ARS 777,204 to ARS 3,688,339.

  • Child by ARS 391,947 to ARS 1,860,043.

  • Corrected the earned income deduction calculation to include 13th month pay and decreased by ARS 675,435 to ARS 18,798,086.

  • Increased the employee voluntary pension deduction limit by ARS 378,027 to ARS 573,827.

Croatia

Income Tax

Made the following changes to the tax table, effective March 1, 2025, unless otherwise stated:

  • Increased the bracket threshold by EUR 9,600 to EUR 60,000.

  • Decreased the bracket rates by 0.6% to 23% and 2.4% to 33%.

  • Increased the personal allowance by EUR 40 to EUR 600, effective January 1, 2025.

Cyprus

Social Security

Increased the following wage ceilings, effective January 1, 2025:

  • Social by EUR 3,744 to EUR 66,612.

  • Employer unemployment and vocational training by EUR 6,552 to EUR 66,612.

Denmark

Social Security

Increased the employee contribution by DKK 48 to DKK 1,188, effective January 1, 2024.

Dominican Republic

Social Security

Increased the following contribution wage ceilings based on monthly minimum wage changes, effective April 1, 2025:

  • Pension by DOP 719,720 to DOP 6.7 million.

  • Health by DOP 359,860 to DOP 3.4 million.

France

Increased the following, unless stated otherwise, effective January 1, 2025:

Income Tax

  • Tax bracket thresholds. The threshold for the 45% top bracket increased by EUR 3,188 to EUR 180,294.

  • Nonresident tax bracket thresholds. The threshold for the 30% top bracket increased by EUR 1,396 to EUR 78,986.

  • Phaseout thresholds for the low-income credit (La Décote) by EUR 16 to EUR 889 and by EUR 26 to EUR 1,470 for single and married employees, respectively.

  • Maximum deduction by EUR 255 to EUR 14,426.

  • Income thresholds limiting coefficient relief. The threshold increased by EUR 795 to EUR 44,890 for single employees with one dependent.

  • Applied a proration to foreign social contributions based on months spent in France when the employee remains a tax resident in the home country in determining the amount deductible in France. Also included the foreign social contribution as deductible for non-equalized calculations for inbound employees.

Social Security

  • Ceiling 1 amount by EUR 732 to EUR 47,100.

  • Decreased employer health insurance contribution rate by 0.3% to 13%.

  • Wage guarantee contribution rate by 0.05% to 0.25%.

Germany

Social Security

Removed the Social Security Regime tax position, effective January 1, 2025. East and West Germany now apply the same wage ceilings to all contributions.

Greece

Social Security

Increased the wage ceiling by EUR 2,787 to EUR 106,017, effective January 1, 2025.

Guyana

Income Tax

Made the following changes, effective January 1, 2025:

  • Increased the bracket threshold by GYD 720,000 to GYD 3.12 million.

  • Decreased the bracket rates by 3% to 25% and 5% to 35%.

  • Increased the standard deduction by GYD 360,000 to GYD 1.56 million.

Honduras

Increased the following, effective January 1, 2025:

Income Tax

Tax bracket thresholds. The threshold for the 25% top bracket increased by HNL 28,807 to HNL 771,252.

Social Security

Employer unemployment contribution wage ceiling by HNL 24,944 to HNL 478,468.

Indonesia

Social Security

Increased the pension wage ceiling by IDR 6.1 million to IDR 126.6 million, effective March 1, 2025.

Italy

Social Security

Increased the following, effective January 1, 2025:

  • Wage ceiling by EUR 957 to EUR 120,607.

  • Additional 1% contribution threshold by EUR 440 to EUR 55,448.

Japan

Social Security

Decreased the following, effective April 1, 2025:

  • Employee and employer unemployment insurance contribution rates by 0.05% to 0.55% and 0.90%, respectively.

  • Health insurance contribution rate by 0.04% to 5.75%.

Kazakhstan

Other Employer Costs

Increased the payroll tax rate by 1.5% to 11%, effective January 1, 2025.

Kenya

Income Tax

Made the following changes, effective January 1, 2025:

  • Increased the maximum pension deduction by KES 120,000 to KES 360,000.

  • Added a deduction for National Health and Housing Fund Levy contributions.

Luxembourg

Income Tax

Enhanced the expatriate concession to add support for the new simplified regime, effective January 1, 2025. This regime deducts 50% of assignment income up to a maximum of EUR 200,000 when Qualifies for Expatriate Concession? is set to Yes - Simplified Regime. The prior behavior is still available until 2032 by setting the input to Yes - Legacy Regime.

Malta

Made the following changes, effective January 1, 2025:

Income Tax

Increased the thresholds for the 0% and 15% tax brackets, effective January 1, 2025. The threshold for the 35% top bracket remains EUR 60,000.

Social Security

Increased the wage ceiling by EUR 624 to EUR 28,303, effective January 1, 2025.

Mongolia

Social Security

Increased the employee wage ceiling by MNT 15.84 million to MNT 95.04 million, effective April 1, 2025.

Montenegro

Social Security

Decreased the employee and employer pension contribution rates by 5% to 10% and 5.5% to 0%, respectively, effective October 1, 2024.

Morocco

Income Tax

Made the following changes, effective January 1, 2025:

  • Decreased the top bracket rate by 1% to 37% and increased tax bracket thresholds for the first four brackets. The 37% top bracket rate remains applicable to income over MAD 180,000.

  • Increased the credit per dependent and maximum child credit by MAD 140 to MAD 500 and MAD 840 to MAD 3,000, respectively.

Netherlands

Income Tax

  • Updated the expatriate concession, effective January 1, 2025:

  • Removed the Yes - 2024 and After option and revised the remaining options to Yes and No for Qualifies for Expatriate Concession?.

  • Decreased the concession rate from 30% to 27% for cost estimates for years 2027 and beyond.

  • Cost estimates which previously set Qualifies for Expatriate Concession? to Yes - 2024 and After will need to set Qualifies for Expatriate Concession? to Yes to apply the updated expatriate concession.

  • Corrected the treatment of the following line items when Homes Maintained in Both Countries is No and Qualifies for Expat Concession is Yes:

  • Housing Costs Host Country to be considered extraterritorial costs only for the excess over 18% of Base Salary. Previously, when host housing costs did not exceed 18% of Base Salary, the full amount was considered an extraterritorial cost.

  • Utilities Host Country to be considered extraterritorial costs.

New Zealand

Income Tax

Made the following changes, effective April 1, 2025:

  • Updated the tax table from an eight-tiered to a five-tiered table with a 39% top rate on income exceeding NZD 180,000.

  • Increased the ACC Earners Levy rate and wage ceiling by 0.07% to 1.67% and NZD 10,507 to NZD 152,790, respectively.

Niger

Other Employer Costs

Decreased the payroll tax rate by 2% to 3%, effective January 1, 2025.

Serbia

Income Tax

Increased the following, effective February 1, 2025:

  • Maximum employee and employer voluntary pension relief by RSD 4,176 to RSD 101,388.

  • Average annual salary by RSD 201,648 to RSD 1.6 million, which increased the following:

  • The 15% top bracket threshold by RSD 1.2 million to RSD 9.7 million.

  • The personal deduction by RSD 80,659 to RSD 649,934.

  • The spouse and dependent deductions by RSD 30,247 to RSD 243,725.

Singapore

Social Security

Added a new tax position, Salary Includes 13th Month Payment?. Select Yes to treat one-thirteenth of line items mapped to base salary as "Additional Wages" or No to treat 100% of line items mapped to base salary as "Ordinary Wages". This new tax position defaults to No.

South Korea

Social Security

Decreased the accident insurance contribution rate by 0.1% to 0.5%, effective January 1, 2025.

Spain

Social Security

Made the following changes:

  • Added a solidarity tax contribution calculated using a 3-bracket progressive table, with top rates of 0.19% and 0.98% for employee and employer, respectively, effective January 1, 2025. The contribution applies to income exceeding the wage limit of EUR 58,914.

  • Enhanced the social tax detail report to disclose each contribution separately.

  • Added a pension (Intergenerational Equity Mechanism) contribution of 0.12% and 0.58% for employees and employers, respectively, effective January 1, 2023.

Switzerland

Income Tax

Increased the child credit by CHF 4 to CHF 263, effective January 1, 2025.

Berne

Income Tax

Corrected the cantonal coefficient from 2.98% to 2.975%, effective January 1, 2025.

Geneva

Income Tax

Decreased the tax rates, effective January 1, 2025. The top bracket rate decreased by 1% to 18% and is applicable to income over CHF 649,355.

Tanzania

Other Employer Costs

Decreased the payroll tax rate from 4.5% to 3.5%, effective July 1, 2023.

United Arab Emirates

Social Security

Added Yes option to the Calculate Social Taxes? tax position to calculate social security contributions for inbound employees.

United Kingdom

Made the following changes, effective April 6, 2025:

Income Tax (Scotland Only)

Increased thresholds for the 19% and 20% brackets. The 48% top bracket remains applicable to income over EUR 125,140.

Social Security

For the employer National Insurance Contribution:

  • Increased the rate by 1.2% to 15%.

  • Decreased the secondary threshold by GBP 4,092 to GBP 5,004.

United States

Income Tax

  • Updated the high-cost locations and limitations on host housing expenses eligible for exemption, effective January 1, 2025. Locations not deemed high cost use the default of USD 39,000.

  • Corrected the treatment of Employer Pension Contributions for inbound employees with US Citizen or Resident? set to Yes, to be taxable. Previously, contributions were treated as nontaxable up to the maximum employer contribution exemption.

  • Corrected the standard deduction to not calculate for inbound nonresidents with an assignment duration of 7 to 11 months. Previously, the standard deduction calculated in this scenario, resulting in a potential understatement of tax.

California

Income Tax

Added the Select Supplemental Rate tax position to allow the selection of Lower (6.6%) or Higher (10.23%) supplemental rates. The Lower rate is used as a default. Previously, only the 6.6% rate was available.

Idaho

Income Tax

Increased the 0% bracket threshold for all filing status, effective January 1, 2025. The threshold increased by USD 137 to USD 4,811 for single employees.

Uruguay

Income Tax

Increased the tax bracket thresholds, based on tax unit (BPC) changes, effective January 1, 2025. The threshold for the 36% top bracket increased by UYU 550,620 to UYU 9.1 million.

Social Security

Increased the social security wage ceiling by UYU 188,916 to UYU 3.3 million, effective February 1, 2025.

Zambia

Other Employer Costs

Corrected the following:

  • Removed the deemed housing benefit.

  • Increased the deemed vehicle benefit by ZMW 8,000 to ZMW 48,000, effective January 1, 2024.

  • Changed the following line items from taxable as fringe benefits to taxable for Income Tax:

  • Domestic Help Host Country

  • Furniture and Appliances Rental Host Country

  • Housing Costs Host Country

  • Telephone Host Country

  • Utilities Host Country

Social Security Agreements

Appendix

Income Tax Treaties and Social Security Agreements

Added the following:

Type

Countries

Effective Date

Duration (Months)

Income Tax

Egypt - Qatar

January 1, 2025

6

Income Tax

Ecuador – United Kingdom

January 1, 2025

6

Recommended Tax Positions

Added defaults for the following new tax positions

Tax Position Set

Tax Estimator

Location(s)

Input Name

v.25.2 Position

Long Term

Short Term

Permanent Transfer

Singapore

Home

Salary Includes 13th Month Payment?

Yes

Long Term

Short Term

Permanent Transfer

Spain

Home

Host

Region

Default

Long Term

Short Term

Permanent Transfer

USA California

Host

Select Supplemental Rate

Lower (6.6%)

Supported Authorities

Search “supported authorities” and "supported subauthorities" in the help center for a full list of our 225 supported authorities including:

  • 155 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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