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Equus Tax Engine v.25.5 released 25 September 2025

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

Updated over 2 weeks ago

Key Features Features Updates Supported Authorities Resources

Key Features

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

Enhanced Automatic Social Security

Added the following agreements. Select Yes from the Enhance Automatic Social Tax? tax position in the home tax estimator to utilize the feature.

  • Australia - India

  • Australia - Germany

  • Canada - United States

  • Germany - South Korea

New Swiss Canton: Aargau

Added support for the Swiss canton of Aargau, bringing the total number of supported cantons to 11. Situated in northern Switzerland, Aargau borders Germany. Its official language is German, and Aarau is its capital and largest city. The top cantonal rate of 11% is imposed on taxable income above CHF 352,700.

Canton Specific Tax Position

As with other supported cantons, the communal coefficient can be overridden by using the Communal Rate Override input. The default communal coefficient rate used is 1.11, which corresponds to the capital city of Aarau.

Features

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

India

Social Security

Added a new tax position, Include G&S Allowance in Social Wage Base?, to allow users to either include or exclude the Goods and Services Allowance in the social base. This tax position defaults to Yes.

Italy

Income Tax

Enhanced the regional and municipal tax calculations as follows:

  • Added support for all regions in the Select Local Rate tax position. For each region, the highest municipal tax rate is used as a conservative default.

  • Added the Municipal Rate Override tax position to allow users to enter a flat municipal rate to use instead of the default.

Before recalculating pre-existing cost estimates, the Select Local Rate position should be updated with the applicable region, else the Lombardia, previously Low (2.53%), rates will be used as a default.

Saudi Arabia

Social Security

Updated the calculation for inbound assignments to include the 10.25% GOSI contribution for employee and employer when Calculate Social Taxes? is set to Yes.

United Arab Emirates

Social Security

Added a new tax position, GCC National?, that allows users to opt out of social security contributions for outbound employees who are not Gulf Cooperation Council (GCC) Nationals. Select No to apply this behavior.

United States

Indiana

Income Tax

Added a new tax position, Select County for Local Income Tax, to support local income tax calculations. Select from a list of 92 counties to use the applicable local flat tax rate. Rates range from 0.5% to 3%. If no county is selected, no local income tax will be calculated.

Proration of Employer Costs on Base Compensation

Added the following tax outputs, which can be used in cost estimate templates that use a Tax Calculation Method of Grossup Only:

  • Home Country Employer Social Tax on Base Comp - Prorated - Use with Grossup Only Option

  • Home Country Employer Payroll Tax on Base Comp - Prorated - Use with Grossup Only Option

The existing outputs, without “- Prorated”, reflect annual costs regardless of partial year status. With the addition of the two new outputs, users with grossup only templates can now achieve prorated costs without the need for workarounds in merge documents or other reports.

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, unless otherwise stated, effective July 1, 2025:

  • Tax bracket thresholds. The threshold for the 35% top bracket increased by ARS 7.0 million to ARS 53.2 million.

  • Basic deduction by ARS 295,619 to ARS 4.2 million.

  • Spouse deduction by ARS 278,414 to ARS 4.0 million.

  • Child deduction by ARS 140,405 to ARS 2.0 million.

  • Decreased the employee voluntary pension deduction limit by ARS 377,982 to ARS 195,845.

Australia

Social Security

Increased the Medicare levy surcharge thresholds, effective July 1, 2025. The threshold for the top 1.5% rate increased by AUD 7,000 to AUD 158,000.

Austria

Social Security

Decreased the employer pension contribution rate by 0.22% to 5.59%, effective January 1, 2025.

Bermuda

Payroll Tax

Corrected the rate by increasing by 0.25% to 10.25%.

Brazil

Income Tax & Social Security

Corrected the post-year calculation for inbounds to Brazil. Previously, an error prevented this scenario from calculating.

Social Security

Corrected the taxability of the following line items:

  • To not taxable:

    • Camp Accommodations Host Country

    • Dependent Home Study Costs

    • Education Allowance

    • Family Pre-assignment Medical and Immunization

    • Incentive/Performance Bonus

    • International Mobility (Settling-In) Allowance

    • Primary or Secondary School Costs Host Country

    • Relocation Allowance

    • Transportation Allowance Host Country

  • To taxable:

    • Employee Language and Cultural Training Costs

    • Employee Wellness and Fitness Host Country

Chile

Social Security

Increased the disability and life employer contribution rate by 0.10% to 1.88%, effective January 1, 2025.

China

Made changes for the following, effective January 1, 2025:

  • Foshan

    • Increased employer pension rate by 1% to 16%.

    • Increased wage ceiling by CNY 12,960 to CNY 330,012.

  • Guangzhou

    • Employer contribution rates:

      • Increased pension by 2% to 16%.

      • Decreased medical insurance by 1.5% to 4.5%.

      • Increased wage ceiling by CNY 12,960 to CNY 330,012.

  • Shanghai

    • Employer contribution rates:

      • Decreased medical insurance by 1% to 8%.

      • Increased occupational injury by 0.04% to 0.2%.

  • Shenzhen

    • Employer contribution rates:

      • Increased pension by 1% to 17%.

      • Decreased medical insurance by 0.2% to 5%.

      • Increased wage ceiling by CNY 12,960 to CNY 330,012.

Finland

Income Tax

Corrected the standard deduction to not calculate when the expatriate concession applies.

France

Income Tax

Corrected the following in the 155B Inpatriate Concession when a reference salary is entered:

  • Ensured the Reference Taxable Income calculation always includes deductible social security.

  • When Yes - With Hypo Deduction is also selected, ensured the Inpatriate Taxable Income calculation always includes the hypo deduction.

French Polynesia

Income Tax

Corrected the following contribution rates, effective January 1, 2024:

  • Employee pension decreased by 5.81% to 2.03%.

  • Employer pension decreased by 11.62% to 4.07%.

  • Employer social security and vocational increased by 1.05% to 11.51%

Gabon

Income Tax

Corrected the income tax calculation by removing the salary tax deduction.

Greece

Income Tax

Changed the following line items to be nontaxable, effective January 1, 2025:

  • Employee Medical Emergencies Host Country

  • Family Medical Emergencies Host Country

Israel

Income Tax

Corrected the following to 2024 amounts as a result of Israel pausing indexation increases until 2028 (previous amounts would have resulted in a tax understatement):

  • Tax bracket thresholds. The 50% top bracket threshold decreased by ILS 24,720 to ILS 721,560.

  • Credit point value decreased by ILS 108 to ILS 2,904.

Italy

Income Tax

Corrected the employment credit at the lowest threshold by increasing the amount by EUR 75 to EUR 1,955, effective January 1, 2025.

Jersey

Social Security

Corrected the employer contribution calculation by removing a duplicative 2.5% Long Term Care contribution.

Liechtenstein

Income Tax

Corrected by increasing the following, effective January 1, 2025:

  • Tax bracket thresholds. The threshold for the 22% top bracket increased by CHF 11,400 to CHF 211,400.

  • Standard and child deductions by CHF 100 to CHF 1,600 and CHF 700 to CHF 12,700, respectively.

Malaysia

Social Security

As a result of legislation that introduced a noncitizen social security rate of 2% on employees and employers, effective October 1, 2025:

  • Added the Malaysian Citizen? tax position to determine whether to use the citizen or noncitizen rates, defaulting to citizen rates.

  • Removed the assumption that inbound assignments with Calculate Social Taxes? set to Automatic are for noncitizens.

Note that pre-existing cost estimates with Malaysia as the host country will have the following defaults applied via a release script that is delivered with the Equus Tax Engine v.25.5, in order to maintain the pre-existing behavior:

  • Where Calculate Social Taxes? is set to Yes, Malaysian Citizen? will be set to Yes.

  • Where Calculate Social Taxes? is set to Automatic or No, Malaysian Citizen? will be set to No.

Mauritius

Income Tax

Updated the tax table from an eleven-tiered to a 4-tiered table with a 35% top rate on income exceeding MUR 12 million, effective July 1, 2025.

Social Security

Increased the pension wage ceiling by MUR 85,620 to MUR 342,840, effective July 1, 2025.

North Macedonia

Corrected the following by increasing the amounts, effective January 1, 2025:

Income Tax

Standard deduction by MKD 8,760 to MKD 123,240.

Social Security

Employee social wage ceiling by MKD 1.1 million to MKD 12.1 million.

Pakistan

Social Security

Increased the wage ceiling by PKR 36,000 to PKR 480,000, effective July 1, 2025.

Panama

Social Security

Consolidated disability, old age, death, health, and maternity contributions into rates of 9.75% and 13.25% for employees and employers, respectively, effective March 18, 2025. This update includes a 0.95% increase to the total employer rate for these components.

Portugal

Income Tax

Decreased the tax rates, effective January 1, 2025. The top rate applicable to income exceeding EUR 83,696 remains 48%.

Serbia

Income Tax & Social Security

Added the inpatriate concession. Set Qualifies for Inpatriate Concession? to Yes to exempt 70% of income from income tax and social security for qualifying employees.

Sint Maarten

Income Tax

  • Increased the following, effective January 1, 2025:

    • Tax bracket thresholds. The 47.5% top bracket increased by ANG 13,731 to ANG 158,252.

    • Personal deduction by ANG 91 to ANG 591.

  • Added a personal credit of ANG 2,332.

Slovakia

Income Tax

Removed the child tax credit, effective January 1, 2025.

Switzerland

Vaud

Income Tax

Increased the following:

  • Effective January 1, 2025:

    • Insurance premium deduction phaseout thresholds:

    • Lower threshold by CHF 3,700 to CHF 126,300.

    • Upper threshold by CHF 3,700 to CHF 164,100.

  • Effective January 1, 2024: family quotient ceiling and per-child adjustment by CHF 3,500 to CHF 210,100 and CHF 400 to CHF 23,300, respectively.

United Arab Emirates

Social Security

Corrected the wage ceiling to prorate for inbound, part year assignments when Calculate Social Taxes? is set to Yes.

United Kingdom

Income Tax

Enhanced the Overseas Workday Relief, effective April 6, 2025:

  • Removed the Qualify for Overseas Workday Relief tax position, replacing it with Overseas Workday Relief Percent to remove the need for users to manually update the workdays.

  • Added maximum relief of the lesser of 30% of net income or GBP 300,000 per year.

  • Added display for the Overseas Workday Relief calculation on the calculation detail report.

As a result, any cost estimates that previously used Qualifies for Overseas Workday Relief? should be updated to use this new tax position.

United States

Income Tax

  • Corrected calculations for the following states to ensure no home state tax is output for nondomiciled employees on domestic assignments:

    • Arkansas

    • Colorado

    • Delaware

    • Iowa

    • Kansas

    • Maine

    • Minnesota

    • Montana

    • New York

  • Corrected calculations for the following states to ensure that local tax is not prorated for outbounds on domestic assignments when there is nonassignment income:

    • Delaware

    • New York

    • Ohio

  • Enhanced the display of domestic cost estimates to give greater detail into the calculation of home state taxes by showing the following:

    • Home and host state taxes available for credit.

    • Home state non-assignment taxes.

  • Made the following changes as a result of H.R. 1 (One Big Beautiful Bill Act), retroactively effective January 1, 2025:

    • Increased the following:

      • Standard deduction for all filing status. The deduction increased by USD 750 for single taxpayers.

      • Child tax credit by USD 200 to USD 2,200.

      • Maximum State and Local Tax (SALT) deduction by USD 30,000 to USD 40,000. The maximum is halved for married employees filing separately.

    • Added a phaseout to the SALT deduction. For single taxpayers with Adjusted Gross Income over USD 250,000, the maximum SALT deduction decreases by 30% of AGI in excess of the threshold, to a minimum of USD 10,000.

Social Security

Corrected the Additional Medicare contribution to not calculate if Medicare is covered by an enhanced social security agreement.

California

Income Tax

Increased the following for all filing status based on CPI changes, retroactively effective January 1, 2025:

  • Bracket thresholds. The threshold for the 12.3% top bracket increased by USD 21,639 to USD 742,952 for single employees. An additional 1% tax is imposed on income over USD 1 million.

  • Standard deductions and exemption credits.

  • Phaseout threshold for itemized deductions and exemption credits.

Maine

Income Tax

Made the following changes to the dependent credit, effective January 1, 2025:

  • Increased the phaseout amount by USD 12.50 to USD 20.

  • Decreased the phaseout step by USD 500 to USD 500.

  • Decreased the phaseout thresholds for all filing status. The threshold decreased by USD 100,000 to USD 100,000 for single employees.

Wisconsin

Income Tax

Increased the 4.4% middle bracket threshold for all filing status, retroactively effective January 1, 2025. The threshold increased by USD 21,110 to USD 50,480 for single employees.

Recommended Tax Positions

Added the following tax positions and default values to the 25.5 Standard Tax Position Sets:

Tax Estimator

Location

Tax Input Name

Long Term

Permanent

Short Term

Recalculation Behavior

Australia

Home

Enhance Automatic Social Tax?

No

No

No

No

CHE Aargau

Home
Home Work
Host

Communal Rate Override

0

0

0

0

India

Home
Host

Include G&S Allowance in Social Wage
Base?

Yes

Yes

Yes

Yes

Italy

Home
Host

Municipal Rate Override

**Value Not
Set**

**Value Not
Set**

**Value Not
Set**

**Value Not
Set**

Malaysia

Home

Malaysian Citizen?

Yes

Yes

Yes

Yes

Malaysia

Host

Malaysian Citizen?

No

No

No

Yes

South Korea

Home

Enhance Automatic Social Tax?

No

No

No

No

United Arab
Emirates

Home

GCC National?

Yes

Yes

Yes

Yes

United
Kingdom

Host

Overseas Workday Relief Percent

**Value Not
Set**

**Value Not
Set**

**Value Not
Set**

**Value Not
Set**

USA Indiana

Home
Host

Select County for Local Income Tax

**Please
Select**

**Please
Select**

**Please
Select**

**Please
Select**

Changed the name of the default option for Italy, Home and Host, Select Local Rate? from Low (2.53%) to Lombardia. This default option provides the same rate of 2.53%.

Supported Authorities

Search “supported authorities” and "supported subauthorities" in the help center for a full list of our 227 supported authorities including:

  • 155 Countries

  • 50 American States and the District of Columbia

  • 10 Canadian Provinces

  • 11 Swiss Cantons

Resources

Help Center articles updated this release:


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