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News Regulatory Updates

Newsletter – July 2021

Table of Contents

Argentina

Progressive Corporate Income Tax (“CIT”) Rates were approved

Australia

Employer’s superannuation contribution rate increased to 10% (effective July 1, 2021)

Australia further extends deadline for avoiding lockdown tax hit

National Minimum Wage increased to AUD 20.33 per hour (effective July 1, 2021)

Australia: Reportable Tax Position (“RTP”) Schedule expanded to large private companies

Brazil

Employers need to pay full salary to pregnant women employees working from home during COVID -19 Emergency

Brazil Tax Reform: Gradual Reduction in Corporate Income Tax (IRPJ) proposed from current 15% to 10% (effective 2023)

Canada

Canada extends relief for Registered Pension Plans (“RPPs”) and Deferred Salary Leave Plans (“DSLP”)

Ontario: Changes announced for the filing process for corporate information returns will go into effect on May 15, 2021

Ontario Business Corporations Act (“OBCA”): Changes made to the requirement of resident directors and shareholder resolution approval will go into effect on July 5, 2021

China

China New Data Security Law will go into effect on September 1, 2021

Czech Republic

Czech Republic increases the “minimum salary for EU Blue Card holders” from ‘CZK 51,188 to CZK 53,417’

Employers can now provide “cash contributions for meals” to employees in addition to tax-advantaged meal vouchers

Denmark

The Anti-Tax Avoidance Directive Compliant CFC Rules Bill receives the approval of the Danish Parliament

France

Incentives for employers under the French economic recovery plan will encourage the employment of young people

Germany

Germany mulls whistle blower Protection Act; New compliance requirements on their way

Germany passes Anti-Tax Avoidance Directives (ATAD) and transposes the EU’s ATAD into German tax laws

Germany announces new filing requirements for transparency register (“E-TraFinG Gw”) on beneficial ownership

Hungary

Hungary introduces tax relief measures including an option for surcharge-free delayed tax payment and tax reduction in light of COVID-19 Pandemic

Hungary Budget 2022 Highlights; Social contribution tax rate reduced from 15.5% to 15% (effective July 1, 2022)

India

India: Various compliances extended and granted an exemption to expenditures and ex-gratia received under COVID-19

India: Bureau of Indian Standards (BIS) issues Data Privacy Standards for organizations

India: CBIC introduces self-certification for GST Reconciliation Statement (Form GSTR-9C)

India proposes prospective application of law taxing the indirect transfer of shares

Israel

Mandatory general and individual reporting for employers

Italy

Italy’s tax reporting system (“esterometro”) will be replaced by the Sistema de Intercambio (“SdI”) in 2022

Malaysia

Country by country reporting to be part of annual company tax return in Malaysia

Malaysia provides waiver of interest and penalty for Sales and Services Tax payments as well as the waiver of penalty for late payment of GST

Netherlands

Tax relief measures introduced to tackle COVID difficulties to remain effective until October 1, 2021

Minimum wage increased from EUR 1.684.80 per month to EUR 1.701.00 per month (effective July 1, 2021)

Partially Paid Parental leaves for 9 weeks to be effective from August 2, 2022

Philippines

Corporate tax reforms under CREATE Law in Philippines

Poland

Proposed increase in minimum wages for the year 2022 from PLN 2,800 per month to PLN 3,000 per month

Spain

Spain Royal Decree regulates remote work by employees through changes in employment agreement

Spain implements new Royal Decrees regulating Equal Pay in Employment and formulation of Equality Plans at workplaces

Sweden

Sweden proposes to reduce an employer’s contribution to 10.21% for young employees from June-Aug 2021

Sweden: Enhanced deduction made available for employees involved in research and development, effective from July 1, 2021

Thailand

Thailand announces reduction in social security fund contribution rates in wake of COVID 19 crisis

United Arab Emirates

UAE Commercial Companies Law amendment allowing 100% foreign ownership is effective from June 1, 2021

United Kingdom

UK’s HMRC announces new penalty and interest regime for the late filing of VAT Returns and payment

HMRC publishes change in tax-free fuel rate for company car users with effect from June 1, 2021

UK Employers will need to check employee (EEA Nationals) documents before they start work (effective July 1, 2021)

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