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 for income, social and payroll tax. See Features section below for more information.
Features
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 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.
New Essential Countries
Tax costs can now be generated for a further 21 “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.
Argentina
Income Tax: Corrected the earned income allowance by increasing the amount by ARS 677,525 to ARS 2.8 million, effective January 1, 2022. The previous calculation resulted in an overstatement of tax.
Bangladesh
Income Tax: Changed the following:
Increased the bracket thresholds. The threshold for the 25% top bracket increased by BDT 50,000 to BDT 1.65 million, effective July 1, 2023.
Corrected the pension contribution credit by decreasing the contribution available for credit by BDT 5 million to BDT 10 million, effective July 1, 2021.
Chile
Increased the following, effective June 1, 2023:
Income Tax: Tax unit (UTM) to CLP 63,263, which increased the tax bracket thresholds. The threshold for the 40% top bracket increased by CLP 7.8 million to CLP 235.3 million.
Social Security: Development Unit (UF) to CLP 36,036 which increased the following wage ceilings:
Employment insurance by CLP 1.8 million to CLP 53 million.
Other contributions by CLP 1.2 million to CLP 35.3 million.
Denmark
Income Tax: Decreased the basic tax rate by 0.03% to 12.06%, effective June 1, 2023.
Ecuador
Income Tax: Increased the bracket thresholds, effective January 1, 2023. The threshold for the 37% top bracket increased by USD 1,936 to USD 105,580.
Germany
Social Security: Made the following changes to the nursing contribution, effective July 1, 2023:
Increased the employee and employer rates by 0.175% to 1.7%.
Increased the additional employee rate for those without dependents by 0.25% to 0.6%.
Added a discount to the employee rate for those with more than one child. The rate reduces by 0.25% for each additional child up to five, resulting in a minimum rate of 0.7%.
Netherlands
Income Tax: Added the income cap of EUR 223,000 for 30% ruling exemption, effective January 1, 2024. The cap is applied from 2026 onwards to moves started in 2022 or earlier.
Pakistan
Income Tax: Made the following changes to the tax table, effective July 1, 2023:
Removed the 32.5% bracket. As a result, the top rate of 35% applies to income above PKR 6 million. The previous threshold was PKR 12 million.
Increased the rate for the 20% and 25% brackets by 2.5% which apply to income above PKR 2.4 million and PKR 3.6 million, respectively.
Serbia
Social Security: Corrected the employer pension contribution by decreasing the rate by 1% to 10%, effective January 1, 2023. The previous calculation resulted in an overstatement of tax.
Singapore
Social Security: Increased the Central Provident Fund wage ceiling by SGD 3,600 to SGD 75,600, effective September 1, 2023.
South Korea
Social Security: Corrected the unemployment contribution by increasing the employee and employer rates by 0.1% to 0.9% and 1.75%, respectively, effective July 1, 2022.
Sweden
Social Security: Corrected the allowance and compensation detail pages of the Calculation Detail Report to display social wages when Qualifies for 6 Month & 1 Year Rule? is set to Yes.
Trinidad and Tobago
Income Tax: Corrected the personal allowance by increasing the amount by TTD 6,000 to TTD 90,000, effective January 1, 2023.
United States
Ohio
Income Tax: Made the following changes to the tax table, effective January 1, 2023:
Removed the 3.226% bracket.
Increased the threshold for the 3.688% bracket by USD 7,850 to USD 100,000.
Decreased the rates for the top two brackets. The new 3.75% top rate applies to income above USD 115,300.
United Kingdom
Income Tax: Increased the following for the pension allowance, effective April 6, 2023:
Minimum and maximum amounts by GBP 6,000 to GBP 10,000 and GBP 20,000 to GBP 60,000, respectively.
Income threshold for tapering by GBP 20,000 to GBP 260,000.
Venezuela
Income Tax: Corrected the tax unit by increasing it by VES 8.6 million to VES 9 million, effective May 8, 2023, which increased the following:
Tax bracket thresholds. The threshold for the 34% top bracket increased by VES 51,600 to VES 54,000.
Standard deduction by VES 6,656 to VES 6,966.
Social Security Agreements
Added the following agreements:
Authorities
Search “supported authorities” in the help center for a full list of our 204 supported authorities including:
134 Countries
50 American States and the District of Columbia
10 Canadian Provinces
9 Swiss Cantons
Or follow these links when signed in to AssignmentPro:
Resources
Help Center articles updated this release: