Welcome to our November 2023 Global Employment Tax and Compliance Newsletter. This edition is crafted for forward-thinking employers and global employment solution providers, offering a lens into the latest shifts and trends in the global employment landscape.
November 2023 has been a month of pivotal changes and strategic adaptations. The global employment domain continues to evolve rapidly from Italy’s revamped expatriate regime to Australia’s innovative pathways to permanent residency and Belgium’s updated salary thresholds.
These changes, crucial insights from the ILO’s digital employment guidelines, and more are dissected here to provide you with actionable intelligence.
Join us as we navigate these developments, understanding their impact, and exploring strategies for effective compliance and operational agility in the global marketplace.
Thank you for choosing us as your guide in the dynamic world of global employment. Let’s dive in!
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🇬🇧 United Kingdom Autumn Statement 2023: Key Updates on National Insurance and Tax Rates
Legislation Adopted
Chancellor Jeremy Hunt’s Autumn Statement, delivered on 22 November 2023, introduces several changes impacting both employees and employers in the UK. Among the most significant is the reduction in National Insurance rates.
Key Provisions in a Nutshell
Understanding the Impact
These changes are crucial for employers managing globally mobile employees in the UK. While the overall tax burden in 2024/2025 is expected to remain stable, individuals liable for UK National Insurance will see a noticeable reduction in contributions.
Implications for Employers & Immediate Actions
To ensure full compliance with the evolving UK tax landscape, employers should stay vigilant for further announcements, especially regarding Scottish and Welsh tax rates.
🇬🇧UK Introduces Electronic Travel Authorisation for Non-Visa Nationals
Legislation Adopted
The UK government is rolling out an Electronic Travel Authorisation (ETA)requirement for non-visa nationals planning to visit, transit, or enter the UK for short stays, including up to three months as a Creative Worker.
Key Provisions in a Nutshell
Understanding the Impact
This change marks a significant shift in the UK’s travel and immigration policy to enhance security and streamline entry processes.
Implications for Employers & Immediate Actions
Inform and Prepare Travellers: Employers should inform non-visa national employees of this new requirement, especially those frequently travelling to the UK.
Plan for Additional Costs and Time: Factor in the ETA cost and application process time into travel plans and budgets.
Monitor Roll-Out Dates: Stay updated on the phased implementation dates for different nationalities in 2024.
🇪🇺EU Takes Action Against Greece and Italy for Non-Compliance with Family Benefits Rules
Legislation Adopted
The European Commission (EC) has initiated infringement procedures against Greece and sent a reasoned opinion to Italy for failing to comply with EU rules on family benefits.
Key Provisions in a Nutshell
🇬🇷Greece: Current laws require EU nationals to reside in Greece for at least five years and non-EU nationals for 12 years to qualify for family benefits.
🇮🇹Italy: Italy’s law, introduced in March 2022, mandates a minimum two-year residence for eligibility for the new family allowance for dependent children.
EU Regulation Violation
Both countries’ requirements contravene EU rules prohibiting residence conditions for social security benefits, including family benefits.
Understanding the Impact
Amendments to these laws in Greece and Italy would be retroactive, allowing mobile workers previously disqualified due to residence requirements to claim family benefits retrospectively.
Implications for Employers & Immediate Actions
🇮🇪 Ireland Streamlines Stamp 4 Immigration Permission Process
Legislation Adopted
In collaboration with the Department of Enterprise, Trade and Employment, Ireland’s Department of Justice has announced changes to the Stamp 4 immigration permission process, effective 30 November 2023.
Key Provisions in a Nutshell
Understanding the Impact
This change simplifies the transition from Stamp 1 to Stamp 4 immigration permission for critical permit holders, making it a single-step process. Stamp 4 permission allows holders to work and live in Ireland without a separate employment permit.
Implications for Employers & Immediate Actions
🇫🇮 Finland Responds to Security Concerns with Eastern Border Closure
Legislation Adopted
The Finnish government has announced the closure of specific border-crossing points along its eastern border, effective from 18 November 2023 to 18 February 2024, as a security measure against illegal entries.
Key Provisions in a Nutshell
Understanding the Impact
This closure is a response to the rise in illegal entries, particularly in southeastern Finland. It affects individuals and employees who frequently travel between Finland and Russia, requiring them to adjust to the remaining open border points.
Implications for Employers & Immediate Actions
🇪🇺 Council of the EU Approves Digitalisation of Schengen Visa Application Process
Legislation Adopted
The EU Council has endorsed new regulations to digitalise the Schengen visa application process, allowing travellers to apply online for visas to the Schengen area, which comprises 27 European countries with minimal internal border controls.
Key Provisions in a Nutshell
Understanding the Impact
This digital transformation streamlines the visa application process, making it more efficient for travellers and national administrations. It enhances the speed and effectiveness of application processing.
Implications for Employers & Immediate Actions
🇺🇸 United States Advances U.S — 🇹🇼Taiwan Double-Tax Mitigation Bill
Legislation Adopted
The “United States-Taiwan Expedited Double-Tax Relief Act” has been approved by the U.S. House Committee on Ways and Means as of November 30, 2023, signalling a significant step towards resolving double taxation issues between the U.S. and Taiwan.
Key Provisions in a Nutshell
Understanding the Impact
This legislative move is pivotal in alleviating double taxation challenges for American and Taiwanese tax residents. It aims to streamline cross-border financial activities and provide clarity for businesses and individuals engaged in U.S.-Taiwan exchanges.
Implications for Employers & Immediate Actions
🇨🇱 Chile Approves Tax Treaty with the 🇺🇸 United States
Legislation Adopted
The Chilean Senate has approved the income tax treaty with the United States, completing its legislative journey. This followed its prior approval by the Chilean Chamber of Deputies.
Key Provisions in a Nutshell
Understanding the Impact
The approval of this tax treaty marks a significant development in the economic relationship between Chile and the United States. It is expected to ease cross-border commerce and mobility of employees between the two nations.
Implications for Employers & Immediate Actions
🇨🇭Switzerland Upholds Protection for Ukrainians Until March 2025
Legislation Adopted
Following the European Union’s decision, the Swiss Federal Council has extended protection status for Ukrainians until 4 March 2025, aligning with the EU’s temporary protected status.
Key Provisions in a Nutshell
Criteria for Discontinuing Temporary Protection S Status
Temporary Protection S Status may not be renewed when there is no longer a significant risk for the individuals upon their return to their home countries. This applies when conditions in their country of origin have substantially and lastingly improved, allowing for their safe repatriation.
Understanding the Impact
This extension provides stability and clarity for Ukrainian citizens and Swiss employers. It ensures continued access to education, labour market opportunities, and language courses for Ukrainians in Switzerland.
🇨🇿 Czech Republic Enacts Comprehensive Personal Income Tax and Social Security Reforms
Legislation Adopted
The Czech Republic has passed new legislation impacting personal income tax and social security contributions. The changes, approved by the president and the Czech Senate, are set to take effect from 1 January 2024.
Key Provisions in a Nutshell
Understanding the Impact
These reforms aim to address financial imbalances in the Czech economy. They will notably impact the taxation of employees, including international assignees, potentially leading to higher taxation and affecting the cost of assignments.
Implications for Employers & Immediate Actions
🇧🇪 Belgium Announces 2024 Minimum Salary Requirements for Non-EEA Nationals
Legislation Adopted
Belgium’s Flemish, Walloon, and Brussels Regions have set new minimum salary thresholds for 2024, applicable to non-European Economic Area (EEA) nationals working in these regions.
Key Provisions in a Nutshell
Understanding the Impact
Meeting these minimum salary requirements is crucial for obtaining legal work permits for non-EEA nationals in Belgium. Non-compliance can result in significant penalties, including fines and possible imprisonment.
Implications for Employers & Immediate Actions
Review Salary Structures: Employers must ensure their pay scales meet or exceed these new thresholds for non-EEA employees.
Budgeting: Plan for potential salary increases to maintain compliance.
Stay Informed: Keep abreast of any further regional variations or updates to these requirements.
Risk Management: Understand the consequences of non-compliance and implement measures to avoid legal and financial penalties.
ILO Releases Guidelines for Assessing Digital Employment
Key Document Published:
The International Labour Organization (ILO) has published comprehensive Digital Employment Diagnostic Guidelines for evaluating and understanding the complex nature of digital employment.
Key Provisions in a Nutshell
ILO’s Digital Employment Diagnostic Guidelines: Significance and Strategic Response
🇳🇬 Nigeria Announces Increase in Visa-on-Arrival Biometric Fees
Legislation Adopted
The Nigeria Immigration Service (NIS) has implemented an increase in biometric fees for Visa-on-Arrival (VOA) applications.
Key Provisions in a Nutshell
The Significance Explained
This fee increase affects the overall cost for foreign nationals (except U.S. nationals) seeking to enter Nigeria via the VOA program, impacting business travel expenses for individuals and organisations.
Implications for Employers & Immediate Actions
🇮🇹 Italy Modifies Expatriate Regime Effective January 2024
Legislation Adopted
The Italian government has announced changes to the expatriate regime, set to take effect from 1 January 2024, as outlined in a new Legislative Decree.
Key Provisions in a Nutshell
Implications for Employers & Immediate Actions
🇦🇺 Australia Enhances Employer-Sponsored Permanent Residence Pathways
Legislation Adopted
Following a year-long review and consultations, the Australian government has announced changes to its Migration Program, particularly affecting the Temporary Skill Shortage (Subclass 482) Visa and the Employer Nomination Scheme (Subclass 186).
These changes aim to provide more flexibility and certainty for employers and visa holders, enhancing Australia’s ability to attract and retain skilled workers amid skills shortages.
Key Provisions in a Nutshell
Temporary Skill Shortage (TSS) Visa (Subclass 482) Changes
Employer Nomination Scheme (Subclass 186) Adjustments
Implications for Employers & Immediate Actions
Policy Review: Employers should reassess their immigration and workforce strategies in light of these changes.
Inform and Assist Employees: Update current and potential TSS visa holders about the new application and renewal processes.
Prepare for Permanent Residence Applications: Plan for nominating eligible TSS visa holders under the modified Employer Nomination Scheme.
Stay Updated: Keep abreast of the full details of the changes, especially regarding age exemptions and other adjustments, as they are released.
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Wrap-Up
As we conclude this November 2023 edition of our Global Employment Tax and Compliance Newsletter, we hope the insights and updates provided have been enlightening and valuable in guiding your strategic decisions in the ever-evolving landscape of global employment.
We encourage you to reach out with any questions or for further discussions on how these changes might specifically impact your business. Stay tuned for our next edition, where we will continue to bring you the latest and most relevant information on global employment.
Thank you for joining us on this informative journey. Until next time, we wish you successful and compliant business operations in the dynamic world of global employment.