Updates Recordings Resources
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
Social Security: Increased the employee wage ceiling by ARS 1.2 million to ARS 8.3 million, effective March 1, 2023.
Bahrain
Social Security: Increased the employee and employer contribution rates by 1% and 3% to 8% and 15% respectively for outbound assignments, effective January 1, 2023.
China
Social Security: Enhanced the inbound social security calculation to include the housing fund contribution when Chinese National? is set to Yes. This contribution was previously excluded on the assumption inbounds to China were non-nationals and hence not obligated to contribute. The housing contribution rate and wage ceiling vary by urban location. The top rate of 12% for employee and employer applies for Beijing, Shanghai, and Shenzhen. The maximum wage ceiling of CNY 466,704 relates to Shenzhen.
Finland
Income Tax: Made the following changes, effective January 1, 2023:
Corrected the municipal tax rate to 5.36%. The previous rate of 18% resulted in a potential overstatement.
Corrected the tax table by increasing the bracket thresholds and decreasing the rates. The threshold increased by EUR 7,300 to EUR 85,800 and the top rate decreased by 0.5% to 44%.
Updated the earned income tax credit as follows:
Increased the rate by 1.7% to 12%.
Increased the maximum by EUR 230 to EUR 2,030.
Updated the phaseout table as follows, which increased the taxable income at which the credit completely phases out by EUR 11,807 to EUR 157,240:
Increased the first bracket rate and threshold by 0.11% to 2.03% and EUR 6,000 to EUR 22,000, respectively.
Decreased the second bracket rate by 0.06% to 1.21% and increased the threshold by EUR 30,000 to EUR 70,000.
France
Income Tax: Made the following updates, effective January 1, 2023, which were omitted from v.23.1 resulting in a potential overstatement of tax:
Increased the maximum deduction by EUR 693 to EUR 13,522.
Increased the nonresident table threshold for the 12% and 20% brackets by EUR 822 to EUR 16,050 and EUR 2,384 to EUR 46,557, respectively. Nonresidents are subject to the 30% resident rate when income exceeds EUR 74,035, an increase of EUR 2,384.
Greece
Social Security: Increased the wage ceiling by EUR 627 to EUR 7,127, effective January 1, 2023.
Indonesia
Social Security: Increased the pension wage ceiling by IDR 5.8 million to IDR 114.7 million, effective March 1, 2023.
Italy
Social Security: Increased the wage ceiling by EUR 8,506 to EUR 113,520, effective January 1, 2023.
Luxembourg
Social Security: Increased the wage ceiling by EUR 3,580 to EUR 146,824, effective February 1, 2023.
Malaysia
Social Security: Added Misc. (other) Taxable Costs to the wage base.
Mongolia
Income Tax: Corrected the tax table from a flat rate of 10% to a three-tier table with a top rate of 20% on income exceeding MNT 180 million, effective January 1, 2023.
Social Security:
Decreased the employee and employer contribution rates by 1% to 11.5% and 13.5%, respectively, effective July 1, 2022.
Increased the employee wage ceiling by MNT 15.6 million to MNT 66 million, effective January 1, 2023.
New Zealand
Income Tax: Increased the ACC Earners Levy rate and wage ceiling by 0.07% to 1.53% and NZD 2,840 to NZD 139,384, respectively, effective April 1, 2023.
Qatar
Social Security: Changed the following, effective January 3, 2023:
Added a wage ceiling of QAR 100,000.
Increased the employee and employer contributions by 2% to 7% and 4% to 14%, respectively.
Senegal
Social Security: Corrected the health contribution rate to 7.5%. The prior rate of 7% was introduced in v.23.1.
Serbia
Income Tax: Increased the following:
Average annual salary by RSD 150,384 to RSD 1.2 million, effective January 1, 2023, which increased the following:
The 15% top bracket threshold by RSD 902,304 to RSD 7.4 million.
The personal deduction by RSD 60,154 to RSD 495,917.
The spouse and dependent deductions by RSD 22,558 to RSD 185,969.
Maximum employee and employer voluntary pension relief by RSD 11,856 to RSD 90,348, effective February 1, 2023.
Singapore
Social Security: Increased the Central Provident Fund (CPF) contribution rates for the three supported age groups above 55 years old, effective January 1, 2023. For employees aged between 66 and 70, the rates are now 7% and 8.5% for employee and employer, respectively. For employees up to 55 years old, the employee and employer rates remain 20% and 17%, respectively.
South Africa
Income Tax: Increased the following, effective March 1, 2023:
Tax bracket thresholds. The threshold for the 45% top bracket increased by ZAR 85,400 to ZAR 1.8 million.
Primary rebate by ZAR 810 to ZAR 17,235.
Spain
Income Tax: Updated the deduction for voluntary pension contributions to be dependent on the employer contribution amount, effective January 1, 2023. No deduction is calculated if the employer contribution is Nil. The maximum eligible deduction remains at EUR 10,000 allocated between the employee and employer as EUR 1,500 and EUR 8,500, respectively.
Sri Lanka
Income Tax:
Changed the following, effective April 1, 2023:
Added three brackets at rates of 24%, 30% and 36% above the previous top bracket of 18%. The threshold for the top 36% top bracket is LKR 2.5 million and the threshold for the previous top 18% bracket is lowered by LKR 5 million to LKR 1 million.
Decreased the personal allowance by LKR 1.8 million to LKR 1.2 million.
Corrected the resident calculation by removing the employment deduction of LKR 700,000. The previous calculation resulted in a potential understatement of tax.
Switzerland
Income Tax: Added the Homes Maintained in Both Countries? tax position to be used in conjunction with the Qualifies as International Employee? tax position to calculate housing relief. When the new tax position is set to Yes, the value entered for Housing Costs Host Country is treated as nontaxable to derive gross income. Similarly, the value entered for Housing Allowance Host Country, is treated as deductible up to CHF 18,000 to derive taxable income.
Previously, housing relief was provided when Qualifies as International Employee? was set to Yes. Reliefs for other benefits such as school costs remain unchanged.
Note that when Use Withholding Table? is set to Yes for Geneva, Neuchatel and Vaud tax estimators, the qualified expatriate deduction always calculates regardless of the new Homes Maintained in Both Countries? tax position setting.
Neuchatel
Income Tax: Increased the tax bracket thresholds, effective January 1, 2023. The top bracket threshold increased by CHF 12,000 to CHF 412,000.
United Kingdom
Income Tax:
Withdrew the 2022/23 income tax table. The 2023/24 table is now used for all calculations, regardless of effective date for compensation calculations, or year column label for cost estimates.
Made the following changes to the Scottish tax table, effective April 6, 2023:
Increased the top two bracket rates by 1% to 42% and 47%, respectively.
Decreased the threshold for the 47% top bracket by GBP 24,860 to GBP 125,140.
United States
Income Tax: Updated the high-cost locations and limitations for host housing expense exemption, effective January 1, 2023. Locations not deemed high-cost use the default of USD 36,000.
Massachusetts
Income Tax: Corrected the state income calculation by removing the Qualified Moving Expenses adjustment to Federal Adjusted Gross Income, effective January 1, 2022.
Previously, the exclusion of moving expenses reimbursement resulted in an understatement of tax.
North Dakota
Income Tax: Increased the tax bracket thresholds, effective January 1, 2023. The top 2.9% bracket threshold increased by USD 33,000 to USD 491,350 for single employees.
Vermont
Income Tax: Increased the following:
Tax bracket thresholds, effective January 1, 2023. The top 8.75% bracket threshold increased by USD 16,400 to USD 229,550 for single employees.
Standard deductions, effective January 1, 2022. The deduction increased by USD 150 to USD 6,500 for single employees.
Personal exemption by USD 150 to USD 4,500, effective January 1, 2022.
West Virginia
Income Tax: Decreased the tax rates for all brackets, effective January 1, 2023. The top bracket rate, applicable to income over USD 60,000, decreased by 1.38% to 5.12%.
Uruguay
Social Security: Increased the social security wage ceiling by UYU 253,560 to UYU 2.8 million, effective February 1, 2023.
Zambia
Social Security: Increased the wage ceiling by ZMW 28,848 to ZMW 322,080, effective January 1, 2023.
Income Tax Treaties
Added the treaty between Morocco and Saudi Arabia, effective January 1, 2023.
Social Security Agreements
Added the agreement between Czech Republic and Mongolia with a coverage period of 60 months, effective March 1, 2023.
Recordings
Resources
Help Center articles updated this release: