Key Features Features Updates Authorities Resources
Key Features
New Countries
The countries listed below are now available in the Tax Engine. The Calculation Detail Report provides details of rates applied to income, social and payroll tax. See the Features section below for more information.
If your site is configured to automatically apply the Generic Tax Estimator for these countries, navigate to the Configuration > Countries screen and uncheck the Use Generic Tax Estimator input to use the tax engine. See the help center for more details.
If your site uses an alternative data source for these countries, a configuration change may be necessary to use the tax engine. Speak to your Client Solutions Manager for more details.
Features
New Essential Countries
Tax costs can now be generated for a further 19 “Essential” countries for both Cost Estimates and Compensation Calculations. Essential tax estimators facilitate the automated calculation of income, social (employee and employer) and payroll taxes. Progressive tax tables, relevant standard deductions & credits, surtaxes, income tax treaties, and social security agreements are applied. Line items are treated as taxable.
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.
Austria
Income Tax: Decreased the rate for the fourth bracket by 2% to 40%, applicable to income between EUR 32,075 and EUR 62,080, effective July 1, 2023.
Cameroon
Income Tax: Corrected the calculation to deduct employee social security. Previously, the calculated tax may have been overstated.
Canada
Quebec
Income Tax: Corrected the personal and spousal credits to calculate for residents only. Previously, the credits were calculated for inbound nonresidents, which are taxpayers with assignment duration of less than 6 months, resulting in a potential understatement of tax.
China
Income Tax: Extended the expiry date for the three concessions from December 31, 2023, to December 31, 2027. When applicable, the concession will apply for Cost Estimates with year label up to 2027.
Exemption of benefits in kind for foreign nationals. When Chinese National? is set to No.
Preferential treatment for bonus. When Bonus Calculation Method? is set to Yes.
Preferential rate for inbound employees to the Greater Bay Area. When Use Regional Preferential Rate? is set to Yes.
Ecuador
Income Tax: Updated the personal credit to calculate as 18% of the product of the basic amount and applicable dependent coefficient, effective January 1, 2023. The maximum credit for employees with five or more dependents is USD 2,748.
Egypt
Income Tax: Corrected the tax table by increasing the following, effective July 1, 2023:
The top bracket rate and threshold by 2.5% to 27.5% and EGP 200,000 to EGP 1.2 million, respectively.
The lowest bracket threshold by EGP 6,000 to EGP 21,000.
Kenya
Added the following, effective July 1, 2023:
Income Tax: 32.5% and 35% tax brackets applicable to income over KES 3.6 million and KES 9.6 million, respectively. Income in these brackets was previously taxed at 30%.
Social Security: Housing Fund Levy contribution calculated at 1.5% of base salary for both employees and employers.
Lithuania
Social Security: Corrected the employee health contribution calculation by removing the wage ceiling of EUR 101,094. The previous calculation resulted in a potential understatement of tax.
Luxembourg
Social Security: Increased the wage ceiling by EUR 7,432 to EUR 154,256, effective April 1, 2023.
Netherlands
Income Tax and Social Security: Corrected the 9.28% bracket threshold in the income tax table and the employee social contribution wage ceiling by EUR 1,554 to EUR 37,149. The previous calculation resulted in a maximum understatement of income tax of EUR 430 and a maximum overstatement of employee social security contribution of the same amount.
Pakistan
Income Tax: Added surtax calculation using an eight-tier progressive table on income above PKR 150 million, effective July 1, 2023. The top rate of 10% applies to income above PKR 500 million.
Social Security: Increased the wage ceiling by PKR 84,000 to PKR 384,000, retroactively effective July 1, 2023.
Rwanda
Income Tax: Made the following updates, effective November 1, 2023:
Added a new 10% bracket applicable to income between FRW 720,000 and FRW 1.2 million.
Increased bracket thresholds. The threshold for the 30% top bracket increased by FRW 1.2 million to FRW 2.4 million.
Singapore
Social Security: Made the following changes:
Added the ordinary wage ceiling effective January 1 for the next three years at SGD 81,600 for 2024, SGD 88,800 for 2025 and SGD 96,000 for 2026. These ceilings will apply automatically for Compensation Calculations based on the effective date and Cost Estimates based on the year column label.
Corrected the CPF calculation by decreasing the additional wage ceiling by SGD 5,200 to SGD 102,000. This ceiling is used to calculate the maximum CPF levied on bonus pay. The previous calculation resulted in a maximum potential overstatement of SGD 1,924 in contributions with SGD 1,040 for employees and SGD 884 for employers.
Slovakia
Income Tax: Increased the minimum monthly subsistence amount by EUR 35 to EUR 269, effective July 1, 2023, which increased the following:
Threshold for the 25% top bracket by EUR 6,093 to EUR 47,538.
Maximum personal and spousal allowances by EUR 723 to EUR 5,646.
United States
Arkansas
Income Tax: Decreased the following, effective January 1, 2023:
Top rate by 0.2% to 4.7%. The top rate remains applicable to income over USD 87,000.
Lowest bracket threshold by USD 100 to USD 5,100.
Maximum bracket adjustment amount by USD 40 to USD 430 for employees with income over USD 87,000.
Wisconsin
Income Tax: Decreased the rates of the first and second tax brackets by 0.04% to 3.50% and 0.25% to 4.40%, respectively, retroactively effective January 1, 2023.
INCOME TAX TREATIES
Authorities
Search “supported authorities” in the help center for a full list of our 223 supported authorities including:
153 Countries
50 American States and the District of Columbia
10 Canadian Provinces
9 Swiss Cantons
Or follow these links when signed in to the Equus Mobile Workforce Platform:
Resources
Help Center articles updated this release: