Global Updates – April 2024
Argentina: The minimum and maximum basis for employee social security contributions increased to a monthly salary of ARS 45,281.15 and ARS 1,471,616.10 respectively from March 1, 2024.
Australia:
- Australian Taxation Office (“ATO”) has announced changes to individual income tax rates and thresholds effective from July 1, 2024.
- Australia introduces right to disconnect effective from August 26, 2024.
Belgium:
- Preparation of employee training plan and informing employee their training rights made mandatory for employer with 20 or more employees effective from April 1, 2024.
- Small business scheme for VAT extended to foreign companies meeting certain conditions, effective January 1, 2024.
- Law enacted to mandate public CbC reporting for multinationals effective for financial years beginning on or after June 22, 2024.
Brazil:
- Monthly individual tax brackets and employee social security contribution table revised for 2024.
- Constitutional Amendment introducing major indirect tax reforms enacted.
Bulgaria: Public CbC reporting to be made mandatory for multinationals effective for financial years beginning on or after January 1, 2025.
Canada:
- Canada: Federal budget for 2024 presented on April 16, 2024. Individual income tax thresholds revised for 2024; 100% Capital Cost Allowance (CCA) deduction in the first year of use on certain assets proposed; waiver of withholding requirement on payments to non-residents in certain situations proposed.
- Quebec: The budget for 2024 presented on March 12, 2024. Individual income tax thresholds revised for 2024; changes to refundable and non-refundable tax credit proposed for development of e-businesses.
- Quebec: Introduction of Act to prevent psychological harassment and sexual violence at workplace effective from March 27, 2024.
Chile: Amendments to labour code for prevention, investigation, and punishment for workplace harassment, etc.
China:
- China released new regulation relaxing requirements for cross-border transfer of personal data, effective from March 22, 2024.
- Shanghai reduces employee basic medical insurance payment rate from 10% to 9% from March 1, 2024.
Cyprus:
- Thresholds increased for the preparation of transfer pricing local file.
- Cyprus increased the Intrastat threshold for arrivals effective from January 1, 2024.
Denmark:
- Working Time Act amended, and new provisions introduced to record working time of employees effective from July 1, 2024.
- Revision in the thresholds for filing Intrastat Returns for 2024.
France:
- Revised social security ceilings and income tax scales announced for 2024.
- France released new guidance regarding employer tax due from companies that hire or host foreign nationals.
- France relaxed rules for renewal of parental presence leave.
Gibraltar: Gibraltar announced the implementation of a Qualified Domestic Minimum Top-Up Tax (“QDMTT”) effective from January 1, 2024
Greece: Greece implements a global minimum tax from January 1, 2024.
Hong Kong:
- The first weekday after Christmas has been added as a new statutory holiday beginning 2024.
- Hong Kong’s budget for 2024 increased the business registration fees from HKD 2,000 to HKD 2,200 and proposed introduction of a two-tiered standard tax rates regime for “salaries tax” and “tax under personal assessment”.
Hungary:
- Thresholds for Intrastat returns increased effective from January 1, 2024.
- Hungary amends progressive retail turnover tax rates effective from January 1, 2024.
India: India enacted Finance Act, 2024, extending time limit for incorporation of start-ups eligible for tax holiday from March 31, 2024, to March 31, 2025.
Ireland: Extension of child benefit to 18-year-olds, who are in full time education or having a disability, effective from May 1, 2024.
Italy:
- Italy introduced new rules for the expatriate regime effective from January 1, 2024.
- Italy introduces a biennial preventive agreement to simplify tax obligations for small taxpayers.
- Italy imposes stricter requirements for VAT representatives, effective from February 22, 2024.
Israel:
- Israel Tax Authority updated thresholds for invoicing and VAT reporting for 2024.
- Tax Authority introduced digital system to facilitate employee termination process effective from January 2024.
Japan:
- Japan passes Tax Reform 2024 with following changes:
- Blue tax filing companies are entitled to a 30% income deduction from qualifying income from intellectual properties for a period of seven years starting from April 1, 2025.
- Additional tax credits of 5%-15% for companies on increasing the wages of their employees, extended for another three years till March 31, 2027.
- From April 1, 2025, foreign enterprises offering digital services through a digital platform are liable for consumption tax.
- Japan amended Labor Standard Ordinance effective from April 1, 2024, revising employer obligations regarding notification related to workplace and duties.
Malaysia:
- Service tax rate has been increased from 6% to 8% beginning March 1, 2024.
- Companies (Amendment) Act 2024 has introduced the requirement of identifying and verifying beneficial owner and maintaining beneficial owner register beginning from April 1, 2024.
Morocco: Effective from February 14, 2024, non-resident digital service providers are liable for Value-Added-Tax in Morocco.
Peru: Peru introduced 5 days of paid bereavement leave for employees in private sector.
Poland: Poland announced revised thresholds for small taxpayers and social security contribution caps, effective from January 1, 2024.
Singapore: Singapore budget 2024 presented on February 16, 2024. Introduced Enterprise Support Package; introduction of Refundable Tax Credit; implementation of Global Minimum Tax; changes in the social security contributions for senior workers.
South Africa: National Budget 2024 announced; implementation of Global Minimum Tax (“GMT”) effective from January 1, 2024, announced two pot retirement system proposed to be effective from September 2024.
South Korea:
- South Korea enacted tax reform for 2024, introduced additional obligations for multinational entities to submit supplementary transfer pricing documentation.
- The Personal Information Protection Commission amended enforcement decree for Personal Information Protection Act, laying down rules for appointment/qualification of chief privacy officer, disclosure requirements for cross border data transfer, etc.
Sweden: New rules on digital general meetings effective from January 1, 2024.
Switzerland: Introduction of new online VAT obligation in Switzerland effective from January 1, 2024.
Taiwan: Taiwan enacted the new Minimum Wage Act to create a statutory process for reviewing and adjusting minimum wage, effective from January 1, 2024.
Thailand:
- Thailand issues notifications laying down rules for cross-border transfer of personal data.
- The Ministry of Finance extended electronic filing deadline for returns/payments due between February 1, 2024, to January 31, 2027.
United Kingdom:
- UK Spring Statement 2024 announced on March 6, 2024; Employee’s national insurance contribution rate reduced from 10% to 8%; residence-based regime proposed for non-UK domiciled individuals; revision in the VAT registration and de-registration threshold.
- Provisions of Economic Crime and Corporate Transparency Act 2023 to improve quality of information in company register are effective from March 4, 2024