KEY FEATURES
Release version 21.2.0 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.
Country Updates
Australia
Social Security: Enhanced the social tax detail report by adding the number of applicable months to the employer superannuation contributions display.
Austria
Income Tax: Changed the following medical allowances to taxable: Employee Wellness and Fitness Host Country, Family Annual Examinations Host Country, Family Medical Emergencies Host Country, Health Benefits Host Country, Medical Facilities Host Country, and Statutory Holiday & Sick Leave Host Country.
Azerbaijan
Income Tax: Changed the following:
Employee Medical Emergencies Host Country to nontaxable.
Taxability of certain moving costs as disclosed in Appendix B.
Bahrain
Social Security: Decreased the following :
Employee by 1% to 7% for outbound assignments.
Employer by 1% to 3% and 4% to 12% for inbound and outbound assignments, respectively.
Brazil
Income Tax: Changed Shipment of Pets to nontaxable when duration exceeds 12 months or assignment type is Permanent.
Bulgaria
Income Tax: Changed the following:
Per Diems Allowance to taxable unless duration is 12 months or less and assignment type is Short Term with Deductions.
Temporary Housing in Host Country to taxable.
Taxability of certain moving and relocation costs as disclosed in Appendix B.
Canada
Manitoba
Income Tax: Increased the following, effective January 1, 2021:
Tax bracket thresholds. The threshold for the top rate of 17.4% increased by CAD 721 to CAD 72,885.
Personal amount by CAD 98 to CAD 9,936.
New Brunswick
Income Tax: Increased the following, unless stated otherwise, effective January 1, 2021:
Tax bracket thresholds. The threshold for the top rate of 20.3% increased by CAD 4,605 to CAD 162,383.
Personal amount by CAD 300 to CAD 10,564.
Decreased the spousal and dependent amounts by CAD 618 to CAD 8,970.
Newfoundland and Labrador
Income Tax: Increased the following, unless stated otherwise, effective January 1, 2021:
Tax bracket thresholds. The threshold for the top rate of 18.3% increased by CAD 759 to CAD 190,363.
Personal amount by CAD 38 to CAD 9,536.
Corrected the spousal and dependent amounts by decreasing them by CAD 746 to CAD 7,792.
Prince Edward Island
Income Tax: Increased the following, effective January 1, 2021:
Personal amount by CAD 500 to CAD 10,500.
Spousal and dependent amounts by CAD 425 to CAD 8,918.
Saskatchewan
Income Tax: Increased the following, effective January 1, 2021:
Tax bracket thresholds. The threshold for the top rate of 14.5% increased by CAD 1,292 to CAD 130,506.
Personal, spousal, and dependent amounts by CAD 160 to CAD 16,225.
China
Income Tax: Added year awareness to limit the Pearl River Delta regional preferential rate calculation to eligible years, from 2019 to 2023. When the input is selected, the 15% concession rate will not apply when the Year Column Label is after 2023.
Czech Republic
Income Tax: Changed the taxability of the following line items:
Employee Home, R&R and Rotational Leave to nontaxable unless Assignment Type is Permanent.
Family Passports & Visas and Family Pre-Assignment Medical Exam to nontaxable.
Additional moving and other relocation costs as disclosed in Appendix B.
Egypt
Income Tax & Social Security: Resolved an error that prevented the calculation of cost estimates and compensation calculations using the Egypt tax estimator. This change was included in v.21.1.2, released on February 11, 2021.
El Salvador
Social Security: Decreased the pension contribution wage ceiling by USD 6,061 to USD 78,278, effective January 1, 2021.
Germany
Social Security: Added the additional health contribution of 0.7% for employee and employer.
Greece
Income Tax: Limited the exemption of the special solidarity contribution for compensation calculations with effective dates incompensation calculations.
Guinea
Amounts shown in millions.
Income Tax:
Increased the tax bracket thresholds. The threshold for the top rate of 20% increased by GNF 10 to GNF 20, effective January 1, 2019.
Corrected the calculation to prorate income based on months to derive the effective tax rate to apply on assignment income. The previous calculation resulted in a maximum potential tax overstatement of GNF 10.
Social Security: Increased the wage ceiling by GNF 12 to GNF 30, effective January 1, 2019.
Hong Kong
Income Tax: Changed Tax Services to nontaxable.
India
Income Tax: Added the ability to enter personal deductions subject to the INR 150,000 cap. Enter the amount as a negative value. The value is combined with social security contributions and education related costs to decrease taxable income. Use this feature by adding a line item to the cost estimate template with mapped to Base Compensation: Personal Deduction, or to the line item to the Personal Deductions calculation input for the Expat4Cast Hypo tax calculations.
Indonesia
Income Tax: Changed the inbound resident calculation for part year to include the annual base compensation to derive the effective tax rate to apply on
Israel
Income Tax: Decreased the following, effective January 1, 2021:
Tax bracket thresholds. The threshold for the top rate of 50% decreased by ILS 3,960 to ILS 647,640.
Credit point value by ILS 12 to ILS 2,616.
Kenya
Income Tax: Changed Statutory Holiday & Sick Leave Host Country to taxable.
Luxembourg
Income Tax: Corrected the calculation to deduct the larger of the personal allowance and the deductible portion of the employee social security contribution. The deducted both, resulting in a maximum potential tax understatement of EUR 245.
Mexico
Income Tax:
Increased the tax bracket thresholds, effective January 1, 2021. The threshold for the top rate of 35% increased by MXN 399,540 to MXN 3.9 million.
Changed the following line items to taxable:
Employee Wellness and Fitness Host Country, Family Annual Examinations Host Country, Health Benefits Host Country, and Vehicle Charge to Employee Host Country
Other relocation costs as disclosed in Appendix B.
Mozambique
Income Tax: Decreased the annual exemption by MZN 43,740 to MZN 225,000.
New Zealand
Updated the following, effective April 1, 2021:
Income Tax: Added a new top rate of 39% applicable to income above NZD 180,000.
Other Employer Costs: Increased the rate by 14.7% to 63.9%.
Nigeria
Income Tax: Changed employee and employer voluntary pension contributions to deductible and nontaxable, respectively, for outbound assignments.
Papua New Guinea
Income Tax: Changed the taxability of the following:
Employee and employer voluntary pension contributions to nontaxable for outbound assignments.
Housing Cost Host Country and Auto Lease in Host Country to be taxable at input value instead of prescribed value for outbound assignments.
Domestic Help Host Country and Pre-Assignment/Pre-Repatriation Visit to taxable.
Utilities Host Country to nontaxable when duration is 12 months or less and assignment type is Short Term with Deductions.
Additional moving and other relocation costs as disclosed in Appendix B.
Peru
Income Tax: Changed the following line items to nontaxable:
For inbound assignments: Employee and Family Airfare/Hotel on Expatriation and Repatriation; Employee Home, R&R, and Rotation Leave; Family Home Leave; Meals; Shipment of Pets; Temporary Housing in Foreign Country; and Transportation of Goods on Expatriation and
When duration is 12 months or less and assignment type is Short Term with Deductions: Camp Accommodations Host Country and Employee Home, R&R, and Rotational Leave
Additional moving and other relocation costs as disclosed in Appendix B.
Philippines
Social Security: Increased the employee and employer contributions by PHP 7,800 to PHP 29,400 and PHP 10,200 to PHP 41,400, respectively, effective January 1, 2021.
Portugal
Income Tax: Added a deduction for social security contributions to EEA for inbound assignments.
Russia
Income Tax: Corrected the hypothetical tax calculation for outbound nonresident assignments to use progressive resident rates instead of the 30% nonresident rate. Use of the nonresident rate was introduced in v.21.1, resulting in an understatement of tax.
Serbia
Income Tax: Increased the wage tax deduction by RSD 24,000 to RSD 219,600, effective January 1, 2021.
Income Tax & Social Security: Added treaties and agreements which were omitted when the Serbia tax estimator was added in v.20.5.
South Africa
Income Tax: Changed Home Purchase Costs on Repatriation and House Sale Closing Costs Home Country to nontaxable when assignment duration is over 12 months or Assignment Type is Permanent.
South Korea
Income Tax: Changed the taxability of the following line items:
Club Membership to taxable.
Additional relocation costs as disclosed in Appendix B.
Social Security: Increased the employee and employer unemployment insurance contributions by 0.2% to 0.8% and 1.7%, respectively, effective January 1, 2021.
Spain
Income Tax: the combined employee and employer voluntary pension deduction cap of EUR 10,000 with separate caps of EUR 2,000 and EUR 8,000, respectively, effective January 1, 2021.
Switzerland
Income Tax: For all cantons, added the Communal Rate Override input to enter a rate other than the capital city communal rate, which is the defaulted value.
Social Security: Added social wage base components to the grossup and allowance sections of the calculation detail report.
Basel Stadt
Income Tax: Changed the cantonal and communal tax allocation from 55% and 45% to 100% and 0%, respectively. When the Communal Rate Override input is used, cantonal tax is calculated at 50% and communal tax at the entered value up to 50%.
Vaud
Income Tax: Decreased the cantonal coefficient by 1% to 155%, effective January 1, 2021.
Zug
Income Tax: Updated the following, effective January 1, 2021:
Decreased the cantonal and communal coefficients by 2% to 80% and 6% to 54%, respectively.
Increased the personal allowance by CHF 4,000 to CHF 11,100.
Taiwan
Social Security: Increased the following contribution rates, effective January 1, 2021:
Workers and health by 0.5% to 11.5% and 5.2%, respectively.
Supplementary health by 0.2% to 2.1%.
Thailand
Income Tax: Corrected the children allowance to calculate all dependents. Previously, the allowance was limited to three dependents, resulting in a maximum potential tax overstatement of THB 10,500 per additional dependent.
Ukraine
Income Tax: Changed the taxability of the following line items:
Transportation Allowance Host Country to taxable.
Additional moving and other relocation costs as disclosed in Appendix B.
United Kingdom
Increased the following, effective April 6, 2021: These changes were included in v.21.1.3, released on March 10, 2021.
Income Tax:
United Kingdom tax bracket threshold for the 20% rate by GBP 200 to GBP 37,700.
Scottish tax bracket thresholds for the 19%, 20%, and 21% rates. The threshold for the 21% rate increased by GBP 162 to GBP 31,092.
Personal allowance applicable to the United Kingdom and Scotland by GBP 70 to GBP 12,570.
Social Security:
Monthly employee upper threshold by GBP 22 to GBP 4,189.
Monthly employee and employer minimum wage thresholds by GBP 5 to GBP 797 and GBP 737, respectively.
United States
Income Tax: Updated the limitations on host use the default of USD 32,610.
Arkansas
Income Tax: Made the following changes, effective January 1, 2021:
Decreased the top rate by 0.7% to 5.9% and increased the bracket thresholds. The new top rate applies to income over USD 38,500.
Increased the exemption credit by USD 3 to USD 29.
Maine
Income Tax: Increased the following, effective January 1, 2021. Amounts shown apply to single taxpayers:
Tax bracket thresholds. The threshold for the top rate of 7.2% increased by USD 550 to USD 53,150.
Standard deduction and exemption phaseout thresholds. The thresholds increased by USD 950 to USD 83,850 and USD 3,150 to USD 279,500, respectively.
Montana
Income Tax: Increased the following, effective January 1, 2021:
Tax bracket thresholds, except for the lowest rate. The threshold for the top rate of 6.9% increased by USD 400 to USD 18,800.
Minimum and maximum standard deductions. The deductions increased by USD 50 to USD 2,140 and USD 120 to USD 4,830, respectively, for single taxpayers.
Personal exemption by USD 70 to USD 2,580.
Nebraska
Income Tax: Increased the following, effective January 1, 2021. Amounts shown apply to single taxpayers:
Tax bracket thresholds. The threshold for the top rate of 6.8% increased by USD 460 to USD 32,210.
Standard deductions. The deduction increased by USD 100 to USD 7,100.
Exemption credit by USD 2 to USD 142.
New York
Income Tax: Made the following changes, effective January 1, 2021. Amounts shown apply to single taxpayers:
Decreased the 5th and 6th tax rates by 0.1% to 6% and 6.3%, respectively. These rates apply to income between USD 21,400 and USD 215,400.
Updated the tax computation worksheet amounts.
North Dakota
Income Tax: Increased the tax bracket thresholds, effective January 1, 2021. The threshold for the top rate of 2.9% increased by USD 4,400 to USD 445,000 for single taxpayers.
Ohio
Income Tax: Increased the personal exemption by USD 50 to USD 1,900, effective January 1, 2021.
Rhode Island
Income Tax: Increased the following, effective January 1, 2021:
Tax bracket thresholds. The threshold for the top rate of 6% increased by USD 2,200 to USD 150,550.
Standard deductions. The deduction increased by USD 150 to USD 9,050 for single taxpayers.
Personal exemption by USD 100 to USD 4,250.
Personal exemption phaseout threshold and step by USD 3,050 to USD 210,750 and USD 50 to USD 6,000, respectively.
South Carolina
Income Tax: Increased the following, effective January 1, 2021:
Tax bracket thresholds. The threshold for the top rate of 7% increased by USD 160 to USD 15,560.
Dependent exemption by USD 70 to USD 4,260.
Vermont
Income Tax: Increased the following, effective January 1, 2020, unless stated otherwise. Amounts shown apply to single taxpayers:
Tax bracket thresholds, effective January 1, 2021. The threshold for the top rate of 8.8% increased by USD 2,950 to USD 206,950.
Standard deductions. The deduction increased by USD 100 to USD 6,250.
Personal exemption by USD 100 to USD 4,350.
Wisconsin
Income Tax: Increased the following, effective January 1, 2021. Amounts shown apply to single taxpayers:
Tax bracket thresholds. The threshold for the top rate of 7.7% increased by USD 3,450 to USD 266,930.
Standard deductions and phaseout thresholds. The deduction and threshold increased by USD 150 to USD 11,200 and USD 209 to USD 16,149, respectively.
Social Security Agreements
Added the following social security agreements:
Agreement Countries
|
Effective Date
|
Coverage Period
|
Argentina – Colombia
|
Sep 1, 2016
|
36 Months
|
China – Serbia
|
Feb 1, 2021
|
60 Months
|
Mongolia – Turkey
|
Mar 1, 2021
|
60 Months
|
Appendix A – 154 Supported Authorities
Appendix B – Changes to Line Item Taxability
Summarized below are taxability changes made to certain line items resulting from annual review to align with tax legislation.
