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KEY FEATURES
Release version 21.1.0 features calculation and rate changes to reflect current tax law resulting from the process to monitor for legislative changes and conduct regular review of supported authorities.
Brexit Update
Reduced the coverage period between the United Kingdom (UK) and European Union (EU) countries from 60 months to 24.
This change will apply for Cost Estimates using Automatic Calculate Social Tax when the Column Label Year for Year 1 is after 2020 (Column Label Year is defaulted based on the Start Date of the Assignment). This reflects the Detached Workers article of the Protocol on Social Security Coordination between the UK and the EU which applies for assignments starting after December 31, 2020.
None of the supported EU countries have opted out of the Detached Workers rule as of January 14, 2021, when v.21.1 was finalized. EU countries have until February 1, 2021 to declare their intention to opt out of the Detached Workers rule. Updates, if required, will be delivered in an upcoming release.
Also reduced the coverage period between the UK and the following EEA countries, previously covered by the EU agreement, from 60 months to the period listed to reflect existing agreements:
Countries
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Countries
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Coverage Period
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Coverage Period
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Norway
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Norway
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36 Months
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36 Months
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Switzerland
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Switzerland
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24 Months
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24 Months
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Country Updates
Argentina
Income Tax: Increased the following, effective January 1, 2021:
Tax bracket thresholds. The threshold for the top rate of 35% increased by ARS 269,815 to ARS 1 million.
Earned income deduction by ARS 210,322 to ARS 804,856.
Basic deduction by ARS 43,817 to ARS 167,678.
Spouse deduction by ARS 40,850 to ARS 156,321.
Child deduction by ARS 20,600 to ARS 78,833.
Social Security: Increased the employee wage ceiling by ARS 128,983 to ARS 2.7 million, effective December 1, 2020.
Austria
Income Tax: Made the following changes for inbound nonresidents:
Decreased the tax free threshold by EUR 9,000 to EUR 2,000.
Added the standard employment deduction of EUR 132.
Social Security:
Increased the salary and bonus wage ceilings by EUR 1,560 to EUR 66,600 and EUR 360 to EUR 11,100, respectively, effective January 1, 2021.
Exempted the following removal cost related line items from the wage base:
En Route Meals
Shipment of Pets
Temporary Housing in Home Location & Foreign Country
Temporary Living Expenses
Belgium
Income Tax: Increased the following, effective January 1, 2021:
Tax bracket thresholds. The threshold for the top rate of 50% increased by EUR 300 to EUR 41,360.
De minima table thresholds. The threshold for the top rate of 50% increased by EUR 300 to EUR 41,360.
Maximum allocation to non-working spouse by EUR 80 to EUR 11,170.
Personal exemption by EUR 60 to EUR 9,050.
Standard business deduction limit by EUR 40 to EUR 4,920.
Dependent exemptions. The exemptions for four children and each additional child increased by EUR 110 to EUR 15,250 and by EUR 40 to EUR 5,860, respectively.
Brazil
Social Security: Increased the employee wage ceiling by BRL 4,323 to BRL 83,636, effective January 1, 2021.
Canada
British Columbia
Income Tax: Increased the following, effective January 1, 2021:
Tax bracket thresholds. The threshold for the top rate of 20.5% increased by CAD 2,420 to CAD 222,420.
Personal, spousal, and dependent amounts. The personal amount increased by CAD 121 to CAD 11,070.
Ontario
Income Tax: Increased the following, effective January 1, 2021:
Two lowest tax bracket thresholds. The threshold for the top rate of 13.2% remains CAD 220,000.
Surtax bracket thresholds. The threshold for the top rate of 36% increased by CAD 55 to CAD 6,237.
Personal, spousal, and dependent amounts. The personal amount increased by CAD 97 to CAD 10,880.
Quebec
Increased the following, effective January 1, 2021:
Income Tax:
Tax bracket thresholds. The threshold for the top rate of 25.8% increased by CAD 1,365 to CAD 109,755.
Personal and spousal amounts by CAD 196 to CAD 15,728.
Maximum deduction for employment income by CAD 15 to CAD 1,205.
Social Security:
Parental Insurance Plan wage ceiling by CAD 5,000 to CAD 83,500.
Pension Plan contribution rate by 0.2% to 5.9%.
Chile
Increased the following, effective February 1, 2021:
Income Tax: Tax unit (UTM) to CLP 51,131, which increased the threshold for the top tax rate of 40% by CLP 3 million to CLP 190.2 million.
Social Security: Development unit (UF) to CLP 29,127, which increased the following wage ceilings (amounts shown in millions):
Employment insurance by CLP 1.5 to CLP 42.9.
Other contributions by CLP 1 to CLP 28.6.
Colombia
Increased the following, effective January 1, 2021:
Income Tax: Tax unit (UVT) to COP 36,308, which increased the following. Amounts shown in millions:
Tax bracket thresholds. The threshold for the top rate of 39% increased by COP 21.7 to COP 1,126.
Maximum voluntary pension deduction COP 2.7 to COP 138.
Basic and dependent allowances by COP 2 to COP 104.6 and COP 0.3 to COP 14, respectively.
Social Security: Monthly minimum salary to COP 908,526, which increased the following. Amounts shown in millions:
Wage ceiling by COP 9.2 to COP 272.6.
Employee pension solidarity bracket thresholds. The threshold for the top rate of 2% increased by COP 7.4 to COP 218.
Costa Rica
Income Tax: Increased the tax bracket thresholds, effective January 1, 2021. The threshold for the top rate of 25% increased by CRC 144,000 to CRC 52 million.
Social Security: Corrected the inbound calculation for grossup only when Calculate Tax Exempted Salary? is set to Yes. Previously, nontaxable 13th month salary was not consistently excluded, resulting in an overstatement of tax.
Croatia
Made the following changes, effective January 1, 2021:
Income Tax: Decreased the rates by 4% to 20% and 6% to 30% for income below and above HRK 360,000, respectively.
Social Security: Increased the employee wage ceiling by HRK 31,608 to HRK 661,032.
Czech Republic
Made the following changes, effective January 1, 2021:
Income Tax:
Replaced the previous calculation, a flat rate of 15% and surcharge of 7%, with a two-tier progressive table comprising a lower rate of 15% and a top rate of 23% on income exceeding CZK 1.7 million.
Removed employer social security contributions from income.
Increased the personal credit by CZK 3,000 to CZK 27,840.
Social Security: Increased the average annual salary by CZK 7,272 to CZK 425,292, which increased the wage ceiling for sickness, pension, and unemployment contributions by CZK 29,088 to CZK 1.7 million.
Denmark
Income Tax: Increased the following, effective January 1, 2021:
Top bracket threshold by DKK 13,800 to DKK 544,800.
Personal allowance by DKK 200 to DKK 46,700.
Maximum employment allowance by DKK 1,200 to DKK 40,600.
Maximum pension and extra pension deductions by DKK 1,300 to DKK 58,500 and DKK 1,600 to DKK 74,700, respectively.
Low and high extra pension deduction rates by 4% to 12% and 10% to 32%, respectively. The low rate applies for employees who are more than 15 years from retirement.
Job allowance threshold and rate by DKK 4,500 to DKK 200,300 and 0.8% to 4.5%, respectively.
Expatriate concession minimum salary by DKK 18,000 to DKK 835,200.
Employment allowance rate by 0.1% to 10.6%.
Ecuador
Income Tax: Decreased the tax bracket thresholds, effective January 1, 2021. The threshold for the top rate of 35% decreased by USD 1,050 to USD 114,288.
Egypt
Social Security: Increased the wage ceiling by the annual indexing rate of 15% for the next seven years, based on the Year Column Label, effective January 1, 2021. For 2021, the ceiling increased by EGP 13,200 to EGP 97,200.
Finland
Income Tax:
Increased the following, effective January 1, 2021:
Tax bracket thresholds. The threshold for the top rate of 31.25% increased by EUR 2,000 to EUR 80,500.
Maximum tax credit by EUR 70 to EUR 1,840; credit rate by 0.2% to 12.7%; and the phaseout rate by 0.1% to 1.9%. As a result, the taxable income at which the credit completely phases out increased by EUR 1,159 to EUR 131,105.
Added the Elect Resident Rates for Nonresidents? input as an available option for inbound estimates.
Corrected the nonresident rate to 35%. Previously, the concession rate of 32% applied.
Social Security: Updated the following, effective January 1, 2021:
Increased the employee contribution rate by 0.5% to 10.6%.
Decreased the employer contribution rate 0.7% to 21.2%.
France
Income Tax: Made the following changes, effective January 1, 2021:
Tax bracket thresholds. The threshold for the top rate of 45% increased by EUR 316 to EUR 158,122.
Nonresident tax bracket thresholds. The threshold for the top rate of 20% increased by EUR 516 to EUR 43,563.
Maximum employment allowance by EUR 25 to EUR 12,652.
Phaseout thresholds for the low income credit (La Décote) by EUR 4 to EUR 1,722 and by EUR 7 to EUR 2,849 for single and married taxpayers, respectively.
Relief limitation deduction thresholds.
Social Security: Rates and wage ceilings remain unchanged for 2021.
Germany
Income Tax:
Made the following changes, effective January 1, 2021:
Added an allowance to derive the solidarity surcharge base of EUR 16,956 and EUR 33,912 for single and married taxpayers, respectively.
Increased the tax bracket thresholds. The threshold for the top rate of 45% increased by EUR 4,113 to EUR 274,613.
Increased the child deduction by EUR 288 to EUR 4,194.
Enhanced the child deduction and child benefit calculations by adding the following options to the Calculate Child Deductions? input:
Automatic - to calculate the child deduction if income exceeds certain thresholds where the tax savings exceeds the child benefit.
Automatic and add child benefit - to add the child benefit return in the tax cost.
Corrected the calculation for outbound assignments with duration of six months or less to exempt all foreign income. Previously, the exemption with progression method was applied resulting in an understatement up to 45% of tax costs if the host country has lower tax.
Social Security: Increased the wage ceilings applicable to the following contributions, effective January 1, 2021:
Pension for East and West Germany by EUR 3,000 to EUR 80,400 and EUR 2,400 to EUR 85,200, respectively.
Health by EUR 1,800 to EUR 58,050.
Greece
Income Tax:
Excluded the special solidarity contribution for compensation calculations and cost estimates with Year Column Label of 2021, effective January 1, 2021. This exclusion only applies for one year.
Changed the following line items to taxable:
Departure/Destination Services
Family Airfare/Hotel En route to Foreign Location & on Repatriation
Unless the Business Expenses Assumption applies:
Employee Airfare/Hotel En route to Foreign Location & on Repatriation
En Route Meals
Temporary Housing in Foreign Country
Temporary Living Expenses
Transportation of Goods to Foreign Location & on Repatriation
Social Security: Decreased the employee and employer contribution rates by 1.2% to 14.1% and 1.8% to 22.5%, respectively, effective January 1, 2021.
Hong Kong
Income Tax: Changed voluntary employer pension contributions to nontaxable for inbound assignments.
Ireland
Income Tax:
Increased the 2% Universal Social Charge upper bracket threshold by EUR 203 to EUR 20,687, effective January 1, 2021.
Changed the following line items to nontaxable for the first two years of inbound assignments:
Employee Home, R&R and Rotational Leave
Family Home Leave
Kazakhstan
Social Security: Updated the employee contributions as follows:
Decreased the pension wage ceiling by KZT 12.8 million to KZT 25.5 million, effective January 1, 2020.
Increased the medical insurance rate by 1% to 2%, effective January 1, 2021.
Kenya
Income Tax: Decreased the tax table from 4 tiers to 3, with a new top rate of 30% on income over KES 388,000, effective January 1, 2021. The previous top rate of 25% now applies to income between KES 288,000 and KES 388,000.
Luxembourg
Income Tax:
Increased the following, effective January 1, 2021:
General tax credit maximum and phaseout rate by EUR 96 to EUR 696 and 0.2% to 1.7%, respectively.
Expatriate concession minimum salary by EUR 50,000 to EUR 100,000.
Corrected the following expatriate concession caps in partial years for inbound assignments:
Prorated the base salary cap applicable to recurring costs and cost of living allowances.
Annualized the fixed amount cap applicable to cost of living allowances.
Social Security: Increased the following, effective January 1, 2021:
Wage ceiling by EUR 3,596 to EUR 132,116.
Accident, health at work, and mutual health care insurance rate by 0.2% to 3.8%.
Malaysia
Income Tax:
Decreased the 14% bracket to 13%, applicable to income above MYR 50,000, effective January 1, 2021.
Corrected the deemed housing benefits to be the lower of 3% of base salary and the aggregate of Temporary Housing in Home and Foreign Countries. Previously, these two allowances were individually capped at 3% of base salary, resulting in a potential overstatement of tax.
Social Security: Decreased the employee contribution rate by 2% to 9%, effective January 1, 2021.
Mexico
Social Security: Increased the wage ceiling by MXN 25,003 to MXN 817,783, effective January 1, 2021.
Netherlands
Income Tax:
Decreased the “Box 1” income tax rate by 0.3% to 9.5% which applies for income up to EUR 68,507, effective January 1, 2021.
Increased the following, effective January 1, 2021:
Threshold for the 9.5% bracket by EUR 417 to EUR 35,129.
Employment levy rebate rates and bracket thresholds. The maximum rebate increased by EUR 386 to EUR 4,205.
General tax credit amount, phaseout threshold, and rate. The maximum credit increased by EUR 126 to EUR 2,837.
Minimum salary to qualify for the 30% ruling concession by EUR 878 to EUR 55,659.
Removed the condition for host tax paid in calculating foreign income exemption for outbound assignments. Previously, exemption did not calculate if host country does not impose income tax.
Social Security: Increased the following, effective January 1, 2021:
Employee and employer wage ceilings by EUR 417 to EUR 35,129 and EUR 1,079 to EUR 58,311, respectively.
Employer contribution rate by 0.2% to 25.6%. The updated rates for each contribution are:
2% Unemployment
4% Disability
7% Health
Norway
Income Tax: Made the following changes, effective January 1, 2021:
Updated the tax table:
Increased the bracket thresholds. The threshold for the top rate of 16.2% increased by NOK 22,000 to NOK 1 million.
Decreased the two lowest rates by 0.2% to 1.7% and 4.0%, respectively.
Increased the following:
Maximum deduction by NOK 2,300 to NOK 106,750.
Personal allowance by NOK 1,150 to NOK 52,450.
Oman
Social Security: Increased the employee and employer contribution rates by 1% to 8% and 12.5%, respectively, effective January 1, 2021.
Peru
Income Tax: Increased the tax unit to PEN 4,400, effective January 1, 2021, which increased the following:
Tax bracket thresholds. The threshold for the top rate of 30% increased by PEN 4,400 to PEN 198,000.
Standard deduction by PEN 700 to PEN 30,800.
Poland
Social Security: Increased the pension and disability wage ceilings by PLN 960 to PLN 157,770, effective January 1, 2021.
Russia
Made the following changes, effective January 1, 2021:
Income Tax: Added a new top rate of 15% on income exceeding RUB 5 million to the existing 13% flat rate.
Social Security: Increased the employer pension wage ceiling by RUB 173,000 to RUB 1.5 million. When income exceeds the wage ceiling, the additional pension contribution applies.
Singapore
Income Tax: Added the Exempt Foreign Employer Contributions? input to the host estimator to exempt mandatory employer contributions to the home country.
Slovakia
Social Security: Increased the wage ceiling by EUR 6,636 to EUR 91,728, effective January 1, 2021.
South Korea
Made the following changes, effective January 1, 2021:
Income Tax: Added a top tax rate of 45%. This rate applies to income over KWN 1 billion.
Social Security: Increased the health insurance wage ceiling by KWN 3.1 million to KWN 102 million.
Spain
Income Tax: Made the following changes, effective January 1, 2021:
Updated the tax table as follows:
For income below EUR 300,000, halved each rate.
For income above EUR 300,000, a new rate of 24.5% applies.
Increased the following:
Maximum pension deduction by EUR 2,000 to EUR 10,000.
Top expatriate rate by 2% to 47%, applicable to income above EUR 600,000.
Sweden
Increased the following:
Income Tax:
Threshold at which income becomes taxable by SEK 13,900 to SEK 523,200, effective January 1, 2021.
Duration of the expatriate concession by two years to five years, retroactively effective June 1, 2020. It is recommended that cost estimates for inbound assignments that qualify for the concession, begin after May 31, 2020, and last more than three years, be recalculated.
Social Security: Employee wage ceiling by SEK 11,298 to SEK 550,374, effective January 1, 2021.
Switzerland
Social Security:
Added the Elect to Remain on Swiss Social Security? input as an option for outbound
Increased the following, effective January 1, 2021:
The minimum and maximum Pillar II pension contribution thresholds by CHF 210 to CHF 25,095 and CHF 720 to CHF 86,040, respectively.
Increased the Old Age contribution rate by 0.03% to 5.3%.
Geneva
Income Tax: Updated the following, effective January 1, 2021:
Tax bracket thresholds. The threshold for the top rate of 19% decreased by CHF 3,552 to CHF 617,982.
Withholding table used for the tax at source method.
Neuchatel
Income Tax: Updated the withholding table used for the tax at source method, effective January 1, 2021.
Schaffhausen
Income Tax:
Decreased the cantonal coefficient by 9% to 102%, effective January 1, 2021.
Increased the insurance premium deduction as follows:
Single taxpayers by EUR 200 to EUR 1,700.
Married taxpayers by EUR 500 to EUR 3,500.
Dependents by EUR 400 to EUR 700 per dependent.
Updated the calculation for married taxpayers to always apply the income splitting factor of 1.9.
Vaud
Income Tax:
Made the following changes, effective January 1, 2021:
Decreased the communal coefficient by 0.5% to 78.5%.
Updated the withholding table used for the tax at source method.
Corrected the calculation by increasing the following. The previous calculation resulted in a potential understatement of tax:
Cantonal coefficient by 1.5% to 156%.
Insurance premium deduction for dependents by CHF 100 to CHF 1,300 per child.
Turkey
Income Tax:
Increased the tax bracket thresholds, effective January 1, 2021. The threshold for the top rate of 40% increased by TRY 50,000 to TRY 650,000.
Changed voluntary pension contributions to be deductible up to the lesser of TRY 35,316 and 15% of income for outbound assignments.
Social Security: Increased the following, effective January 1, 2021:
Wage ceiling by TRY 57,105 to TRY 321,975.
Contribution cap for voluntary pension deductions by TRY 7,614 to TRY 42,930.
Ukraine
Social Security:
Increased the wage ceiling by UAH 180,000 to UAH 1.1 million, effective January 1, 2021.
Corrected the wage ceiling to prorate in partial years for inbound assignments. The previous calculation resulted in a potential overstatement of tax.
United States
Income Tax: Changed House Sale Closing Costs Home Country to be nontaxable when US Citizen or Permanent Resident? is set to Yes. Enter costs incurred as part of a qualified home sale program in this line item. Enter nonqualified closing costs in Reimbursement of Loss on Sale of House.
Arizona
Income Tax: Increased the tax bracket thresholds, effective January 1, 2020. The threshold for the 8% surcharge remains USD 250,000 for single taxpayers.
California
Income Tax: Added the Exclude Safe Harbor? input for outbound assignments. When assignment duration is 18 months or more, this estimator assumes safe harbor conditions are met and does not calculate state tax. Select Yes to calculate.
Illinois
Income Tax: Increased the personal exemption by USD 50 to USD 2,375, effective January 1, 2021.
Minnesota
Income Tax: Increased the following, effective January 1, 2021. Amounts apply to single taxpayers:
Tax bracket thresholds. The threshold for the top rate of 9.9% increased by USD 1,640 to USD 166,040.
Itemized deduction, standard deduction, and dependent exemption phaseout thresholds. The thresholds increased by USD 1,980 to USD 199,830.
Dependent exemption by USD 50 to USD 4,350.
Missouri
Income Tax: Increased the tax bracket thresholds, effective January 1, 2021. The threshold for the top rate of 5.4% increased by USD 120 to USD 8,704.
Oregon
Income Tax: Increased the following, effective January 1, 2021, unless otherwise indicated. Amounts apply to single taxpayers:
Tax bracket thresholds for the 4.8%, 6.8%, and 8.8% brackets. The threshold for the top rate of 9.9% remains USD 125,000.
Standard deductions. The deduction increased by USD 35 to USD 2,350.
Exemption credit by USD 3 to USD 213.
Federal tax deductions, effective January 1, 2020. The maximum increased by USD 150 to USD 6,950.
Income Tax Treaties
The following income tax treaty was added:
Treaty countries
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Effective date
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Hong Kong – Serbia
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January 1, 2021
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Appendix A – 154 Supported Authorities
