Acumen Global Employment Tax and Compliance Newsletter. 1st Edition. January 2023

Press Release from Acumen International: Global EOR/PEO

The global marketplace is becoming increasingly competitive and interconnected. As a result, the importance of businesses meeting the complex compliance requirements in their HR operations has never been higher.

News about Global Employment Tax and Compliance is often difficult to find because of the language barriers, time zones, and cross-border legislation complexity. Acumen International solves this problem by researching and publishing regular updates in English from our experts worldwide.

This newsletter is intended for global employers and global employment service providers. We hope it will be a helpful resource for companies doing business globally and navigating the complex web of employment taxes and labour laws worldwide.

Navigate the Complex Web of Global Employment Tax and Labour Laws

Our Global Employment Tax and Compliance Newsletter is a monthly publication that keeps you updated and helps track the most significant changes in the legislation and regulations around Global Employment Tax and Compliance in 190 countries.

This Newsletter provides comprehensive information on employment taxesโ€”such as payroll taxes, social security contributions, statutory severance payments, unemployment contributions, etc.โ€”and their associated regulatory developments.

We will also provide tips on complying with the increasing number of immigration and labour law requirements you must deal with when relocating your employees or hiring new employees overseas. We hope this will help you avoid potential legal issues.

Global Employment Tax and Compliance Insights.

The Global Employment Tax and Compliance Newsletter by Acumen International covers global employment tax, labour, and immigration compliance from various angles.

Latest Global Employment Tax and Compliance Updates in 15 Countries

The first issue features changes in the 15 countries' legislation and regulations around Global Employment Tax and Compliance. We have compiled a comprehensive overview of recent alterations to the employment and labour laws that international employers must be aware of. Here is a summary of these key changes to help determine the required action.

1. Malta ๐Ÿ‡ฒ๐Ÿ‡น

Effective 1 January 2023, the Government of Malta has increased the maximum amounts of social security and maternity fund contributions as follows:

  • The maximum amount of social security contributions is increased from EUR37.24 to EUR39.28 for individuals born up to 31 December 1961 and from EUR49.97 to EUR51.60 for individuals born from 1 January 1962 onwards, per week per employee.
  • The maximum amount of maternity fund contributions is increased from EUR1.12 to EUR1.18 for individuals born up to 31 December 1961 and from EUR1.50 to EUR1.55 for individuals born from 1 January 1962 onwards, per week per employee.

2. Singapore ๐Ÿ‡ธ๐Ÿ‡ฌ

Effective 1 January 2023, Central Provident Fund (CPF) contribution rates are increased in Singapore.

For employees' portion:

  • 20% for employees up to 55 years of age
  • 15% for employees 55-60 years of age (previously 14%)
  • 9.5% for employees 60-65 years of age (previously 8.5%)
  • 7% for employees 65-70 years of age (previously 6%)
  • 5% for employees above 70 years of age

For employers' portion:

  • 17% for employees up to 55 years of age
  • 14.5% for employees 55-60 years of age (previously 14%)
  • 11% for employees 60-65 years of age (previously 10%)
  • 8.5% for employees 65-70 years of age (previously 8%)
  • 7.5% for employees above 70 years of age

3. Serbia ๐Ÿ‡ท๐Ÿ‡ธ

Effective 1 January 2023, the Serbian Government has announced the following changes:

  • The maximum monthly base for calculating social security contributions is increased from RSD441,140 to RSD500,360.
  • The rate for pension and disability insurance on behalf of the employer is decreased from 11% to 10%.
  • The non-taxable amount for salary tax calculation is increased from RSD19,300 to RSD21,712.

4. South Korea ๐Ÿ‡ฐ๐Ÿ‡ท

Effective 1 January 2023, the South Korean Government has introduced the following changes:

  • The national health insurance contribution rate is increased from 6.99% to 7.09%.
  • The long-term care insurance contribution rate increases from 0.8577% to 0.9082%.
  • The exemption limit for meal allowance is increased from KRW100,000 to KRW200,000 per month.

5. Philippines ๐Ÿ‡ต๐Ÿ‡ญ

Effective 1 January 2023, the rate for social security insurance for the employee is increased from 4% to 4.5%, on behalf of the employer โ€“ from 8% to 9%. The minimum monthly base for calculating social security contributions is PHP4,000; the maximum monthly base is PHP30,000.

Effective 1 January 2023, PIT rates are changed as follows:

โ€“ exempt from PIT annual income up to PHP 250,000

โ€“ 15% on annual income above PHP 250,000 and up to PHP 400,000

โ€“ 20% on annual income above PHP 400,000 and up to PHP 800,000

โ€“ 25% on annual income above PHP 800,000 and up to PHP 2,000,000

โ€“ 30% on annual income above PHP 2,000,000 and up to PHP 8,000,000

โ€“ 35% on annual income above the threshold of PHP 8,000,000.

6. Turkey ๐Ÿ‡น๐Ÿ‡ท

Effective 1 January 2023, the following amendments are introduced:

Tax brackets for PIT are increased:

โ€“ 15% on annual income up to TRY70,000

โ€“ 20% on annual income above TRY70,000 and up to TRY150,000

โ€“ 27% on annual income above TRY150,000 and up to TRY550,000

โ€“ 35% on annual income above TRY550,000 and up to TRY1,900,000

โ€“ 40% on annual income above the threshold TRY1,900,000

The minimum monthly base for calculating social security contributions is increased to TRY10,008.00; the maximum monthly base is increased to TRY75,060.00.

7. Estonia ๐Ÿ‡ช๐Ÿ‡ช

Effective 1 January 2023, the Estonian Government has announced the following changes:

  • The basic tax exemption is increased from EUR500 to EUR654 per month, from EUR6,000 to EUR7,848 per year.
  • The minimum amount of public pension and public health insurance contributions payable by the employer is increased from EUR192.72 to EUR215.82 per month.

8. Cร”te D'Ivoire ๐Ÿ‡จ๐Ÿ‡ฎ

Effective 1 January 2023, the maximum monthly base for calculating pension contributions is increased from XOF2,700,000 to XOF3,375,000, and for calculating family allowance and industrial accident insurance contributions โ€“ from XOF70,000 to XOF75,000.

9. Ghana ๐Ÿ‡ฌ๐Ÿ‡ญ

Effective 1 January 2023, the rates of income tax and tax brackets for resident individuals have been revised as follows:

โ€“ exempt from tax annual income up to GHS4,824

โ€“ 5% on annual income above GHS4,824 and up to GHS6,144

โ€“ 10% on annual income above GHS6,144 and up to GHS7,704

โ€“ 17.5% on annual income above GHS7,704 and up to GHS43,704

โ€“ 25% on annual income above GHS43,704 and up to GHS240,444

โ€“ 30% on annual income above GHS240,444 and up to GHS6,000,000

โ€“ 35% on annual income above GHS6,000,000

Source: in the attachment

Effective 1 January 2023, the minimum monthly base for calculating contributions to the Social Security and National Insurance Trust (SSNIT) is increased from GHS365.33 to GHS401.76, the maximum monthly base โ€“ from GHS35,000.00 to GHS42,000.00.

10. Kazakhstan ๐Ÿ‡ฐ๐Ÿ‡ฟ

Effective 1 January 2023, the following changes are implemented:

โ€“ The standard personal allowance is increased from KZT42,882 to KZT48,300 per month (14 times of monthly calculation index of KZT3,450).

โ€“ The maximum monthly base for calculating pension fund contributions is increased from KZT3,000,000 to KZT3,500,000 (50 times of monthly minimum wage of KZT70,000).

โ€“ The maximum monthly base for calculating health insurance contributions is increased from KZT600,000 to KZT700,000 (10 times of monthly minimum wage of KZT70,000).

โ€“ The maximum monthly base for calculating social insurance contributions is increased from KZT420,000 to KZT490,000 (7 times of monthly minimum wage of KZT70,000).

11. Armenia ๐Ÿ‡ฆ๐Ÿ‡ฒ

Effective 1 January 2023, the following changes are adopted:

The personal income tax rate is reduced from 21% to 20%.

The maximum monthly base (payroll cap) for calculating pension contribution is increased from AMD1,020,000 to AMD1,125,000 (15 times of minimum monthly salary of AMD75,000).

The rates and brackets for the pension contributions are revised as follows:

โ€“ 5% of monthly employment income up to AMD500,000

โ€“ 10% of monthly employment income (minus AMD25,000) if monthly employment income is above AMD500,000 and up to AMD1,125,000

12. Trinidad & Tobago ๐Ÿ‡น๐Ÿ‡น

Effective 1 January 2023, a personal allowance is increased from TTD84,000 to TTD90,000.

13. Austria ๐Ÿ‡ฆ๐Ÿ‡น

Effective 1 January 2023, personal income tax rates are amended as follows:

โ€“ exempt from PIT annual income up to EUR11,000

โ€“ 20% on annual income above EUR 11,000 and up to EUR 18,000

โ€“ 30% on annual income above EUR 18,000 and up to EUR 31,000

โ€“ 41% on annual income above EUR 31,000 and up to EUR 60,000

โ€“ 48% on annual income above EUR 60,000 and up to EUR 90,000

โ€“ 50% on annual income above EUR 90,000 and up to EUR 1,000,000

โ€“ 55% on annual income above EUR 1,000,000

The maximum monthly base (payroll cap) for calculating social security contributions is increased from EUR 5,670 to EUR 5,850.

14. Luxembourg ๐Ÿ‡ฑ๐Ÿ‡บ

Effective 1 January 2023, VAT rates are reduced as follows:

โ€“ standard rate โ€“ from 17% to 16%

โ€“ reduced rates โ€“ from 14% to 13%, and from 8% to 7%

Effective 1 January 2023, the minimum monthly base for calculating social security contributions is increased from EUR 2,313.38 to EUR 2,387.40, and the maximum monthly base โ€“ is from EUR 11,566.88 to EUR 11,936.98.

15. Egypt ๐Ÿ‡ช๐Ÿ‡ฌ

Effective 1 January 2023, the minimum monthly base for calculating social security contributions is increased from EGP1,400 to EGP1,700, and the maximum monthly base is from EGP 9,400 to EGP 10,900.

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Global Employment Tax & Compliance in 190 Countries Covered

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