Key Features

France: Taxability of Pension, Health (Mutuelle), and Life (Prevoyance) Plan Contributions

Added taxability support for contributions to private pension, health (Mutuelle), and life insurance (Prevoyance) plans. By utilizing the following line items, contributions will receive the applicable deductible or excludable treatment for income tax and social security purposes. The tables below provide the applicable line items for mapping contributions, depending on the type of private plan utilized.

* New Base Compensation Line Item added in v.26.2.

** New Allowance Line Item added in v.26.2.

Income Tax Deductions

Pension - Employee and employer contributions are deductible up to the applicable limit. Typically, this limit is 8% of adjusted income.
Health & Life - Employee health, employee life, and employer life contributions are deductible up to combined limits.

Social Security

Employee contributions to Pension, Health, and Life are nondeductible, and employer contributions are:

For CSG - Not eligible for abatement.
For all other contributions - nontaxable up to applicable limits.

For inbounds to France, the Base Compensation line items are considered to be made to home country plans. Thus, typically only the Allowance line items will receive the deductible/non-taxable treatment.

Japan: Social Security Treatment for Multiple Bonus Installments

Added two tax positions, Second Bonus Installment and Third Bonus Installment, to provide the option to split the total Bonus line item amount into up to three bonus installments.

Any remaining bonus not allocated to the second and third installment will be considered as the first installment, i.e. if the Bonus line item is 100,000, second installment is 20,000, and third installment is 30,000, the first installment will be 50,000. Leaving the tax positions blank will treat the total Bonus line item amount as a single bonus installment for the fiscal year.

Social security contributions on bonus installments are calculated as follows:

Cap on Welfare Pension: JPY 1.5 million per bonus installment
Added Family Allowance contributions of 0.115% for both employee and employer capped at JPY 5.73 million, effective April 1, 2026. Non-bonus income is also subject to these contributions, capped at JPY 16.68 million.
Rounding of Bonus (contribution base): the contribution base on bonus will be rounded down to the nearest JPY 1,000, (not applicable for Unemployment Insurance and Workers' Accident Insurance).

Features

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

Indonesia

Social Security

Added a new host tax position, Indonesian Citizen?, that allows users to select the employee’s citizenship status to determine the applicable social security contributions.

Singapore

Social Security

Added a new host tax position, Singaporean Citizen?, that allows users to select the employee’s citizenship status to determine whether to calculate social security contributions.

Sweden

Income Tax

Made the following enhancements:

Added a Calculate Church Tax? tax position that includes the selected rate as an additional tax for members of the Church of Sweden. As this is a voluntary tax, the tax position defaults to No.
Added a Funeral Tax based on the selected municipality:
Stockholm: 0.07%
All other municipalities: 0.292%
Added support for Ludvika in the Municipality tax position, with a municipal tax rate of 34.05% and funeral tax rate of 0.29%.

Switzerland

Geneva

Income Tax

Added a Contributes to Private Health Insurance? tax position to allow users to deduct cantonal average premiums, with the following options:

No: Does not apply the deduction. This is the default tax position.
Yes - Average: Deducts the applicable cantonal average premium of CHF 7,032 per adult and CHF 1,826 per dependent.
Yes - Maximum: Deducts double the total cantonal average premiums.

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.

Azerbaijan

Updated the following, effective January 1, 2026:

Income Tax

The tax table from a two-tiered table to a three-tiered table with a 14% top rate on income exceeding AZN 96,000.

Social Security

The Social Insurance Fund from a flat rate to a three-tiered progressive table with a 10% employee and 11% employer contribution rate on income exceeding AZN 96,000.

Bangladesh

Income Tax

Removed the 5% tax bracket and decreased the thresholds, effective July 1, 2026. The 30% top bracket applies to income over BDT 3.58 million.

Belgium

Social Security

Added three new employer contributions, effective January 1, 2026:
Special Unemployment at 1.69%
Temporary Unemployment at 0.10%
Occupational Accidents at 0.02%
Renamed the Basic Contribution Base contribution to Federal Solidarity.

Canada

Income Tax

Corrected the relocation allowance to be nontaxable when the entered amount is less than CAD 650.

Chile

Social Security

Added the Retirement Pensions contribution at 1% for employers, effective January 1, 2025.

China

Income Tax

Corrected the Hypo Calculation Details report by adding Remaining Hypo Tax calculation. Previously, YTD Actual Taxes Withheld was not deducted from Annual Hypo Tax, resulting in an overstatement of taxes.

Colombia

Social Security & Payroll Tax

Added the Receives Integrated Salary? tax position for outbound cost estimates and compensation calculations.

Germany

Income Tax

Changed the following line items from fully nontaxable to nontaxable up to a combined total of EUR 2,000 per month:

Furniture and Appliances Rental Host Country
Housing Costs Host Country
Telephone Host Country
Utilities Host Country

Poland

Income Tax

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

Portugal

Income Tax

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

Spain

Income Tax

Corrected the proration of actual tax when the Qualifies for Employment Income Exemption? input is Yes.

Sweden

Income Tax

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

United States

Income Tax

Updated 401(k) catch-up contributions for employees 50 years or older to be taxable when income is greater than USD 150,000, effective January 1, 2026.

Maryland

Income Tax

Corrected the following, effective January 1, 2026:

Tax bracket thresholds.
Removed the standard deduction phaseout and replaced with flat deductions. The deduction for single taxpayers is now USD 3,350.

Ohio

Income Tax

Added an exemption phaseout, effective January 1, 2026. The amount ranges from USD 2,350 per exemption when income does not exceed USD 40,000 down to zero when income exceeds USD 500,000.

Variable Updates

Updates to the following values are included in this release of the Equus Tax Engine. Updates with a similar effect may be consolidated to enhance readability (e.g. tax bracket thresholds, credits for successive dependents, etc.).