Global Updates – July 2025

Table of Contents

Argentina:
Argentina tax authority amends schedule for payment of advance income tax for tax year ending December 2025.

Canada:
Canada: Canadian government announces reduction in lowest bracket rate for federal personal income tax to 14% starting from July 1, 2025.
Canada: British Columbia passes Bill No.11 to dispense with sick note requirements for certain short-term leave.

China:
China: Extends unemployment insurance contribution refund policy and one-time job expansion subsidy till December 31, 2025.
China: Measures on security of facial recognition technology enter into force.

Denmark:
Denmark: Denmark parliament passes law to raise retirement age to 70 years by 2040.

France:
France: France Tax Agency updates withholding tax rates applicable to salaries, wages, pensions, and life annuities paid to non-residents.

Germany:
Germany: German parliament approved tax relief package including corporate tax rate cut from 15% to 10% over 5 years beginning 2028.
Germany: Germany extends maternity protection to miscarriages effective from June 1, 2025.

Hong Kong:
Hong Kong: Hong Kong raises age cap for skilled technical foreign employees to address labor shortage.
Hong Kong: Hong Kong – Legislative Councils approves amendment to definition of term continuous contract relevant for employment rights and benefits eligibility

India:
India: MCA notifies e-forms for submission of financial statements and other details, expands disclosure requirement.

Netherlands:
Netherlands: Netherlands and Germany agree to amend tax treaty to support cross-border remote work.

Philippines:
Philippines: Philippines issues guidance on VAT rules for cross-border digital services.

Poland:
Poland: Poland amends Labor Code to introduce pay transparency requirements effective from December 23, 2025.
Poland: Government approves draft bill for introduction of mandatory e-invoicing.

Singapore :
Singapore: Amends law to change reporting requirement for beneficial owner, nominee shareholders and nominee directors effective from June 16, 2025.

Spain :
Spain: Permanent disability cannot automatically result in employment contract termination effective from May 1, 2025.

Thailand :
Thailand: Announced corporate income tax exemption and reduced individual income tax for highly skilled Thai professionals.
Thailand: Thailand cuts corporate tax to 10% for qualifying SEZ businesses under Royal Decree No.

Argentina

Argentina tax authority amends schedule for payment of advance income tax for tax year ending December 2025.

On April 30, 2025, Argentina’s tax authority (“ARCA”) issued General Resolution 5685/2025, introducing modifications to the corporate income tax advance payment schedule.

Under the new rules, companies must make nine advance payments, each equal to 11.11% of the previous year’s tax liability. This replaces the earlier system of ten payments, with the first set at 25% and the remaining at 8.33%. However, for micro, small, and medium enterprises, the current scheme of ten equal payments of 10% remains unchanged.

These changes are applicable to tax years ending on or after December 2025.

Implication:
Companies should note this change and comply accordingly.

Canada

Canada: Canadian government announces reduction in lowest bracket rate for federal personal income tax to 14% starting from July 1, 2025.

On May 27, 2025, the Canadian federal government announced a change to the federal personal income tax system whereby the lowest tax rate applicable to first tax bracket of income up to CAD 57,375 has been reduced from 15% to 14% effective from July 1, 2025. Since personal income in Canada is assessed and taxed on an annual basis, this mid-year adjustment will result in a blended rate for the 2025 tax year. The effective tax rate for the lowest tax bracket in 2025 will be 14.5%. From 2026 onward, the full reduced rate of 14% will apply.

Implication:
Employers should take note of the updated personal income tax rates while processing the payroll.

Canada: British Columbia passes Bill No.11 to dispense with sick note requirements for certain short-term leave.

On April 15, 2025, the government of British Columbia introduced Bill 11 to amend the province’s Employment Standards Act (“ESA”). The bill successfully passed the third reading on May 12, 2025, and received Royal Assent on May 29, 2025.

Currently, under the Employment Standards Act (“ESA”), employees in British Columbia are entitled to five paid and three unpaid days of leave each year for short-term illness or injury. Employers are permitted to request reasonably sufficient proof to confirm an employee’s entitlement to this leave. However, once in force, Bill 11 will eliminate the requirement to obtain a sick note for short term leave under certain circumstances. The specific details around what qualifies as “short-term” and the “specified circumstances” will be clarified through an amendment to the Employment Standard Regulation after a consultation process. These changes are expected to come into force after the regulations are finalized.

The above exemption would not apply to certain types of leave such as maternity, parental, compassionate care, or critical illness/injury leave where employers may still request documentation.

Implication:
Employers should keep track of developments in this respect and modify their leave policies to implement the changes.

China

China: Extends unemployment insurance contribution refund policy and one-time job expansion subsidy till December 31, 2025.

In order to support companies and maintain stable employment, China’s General Office of the State Council has issued the Circular No. [2025] No. 25 dated July 09, 2025, to further enhance employment stabilization policies.

The key measures are as follows:

The unemployment insurance contribution refund policy is extended until December 31, 2025. A company’s eligibility to take benefit of this policy is subject to conditions such as full payment of unemployment insurance contributions for more than one year, lower layoff rate, etc.
The refund rate for large enterprises is capped at 50% (previously 30%), while for small, medium and micro enterprises, it is 90% (previously 60%) of the unemployment insurance contributions paid by the enterprise and its employees in the preceding year. The refund amount can be used towards stabilizing jobs, production, and operations costs such as insurance premium payment, living allowance to employees, job transfer training, etc. Enterprises facing genuine operational difficulties may apply to defer payment of employer contributions to pension, unemployment, and work-related injury insurance. Late fees will be waived during the approved deferral period.
The Chinese government has expanded social insurance subsidies for small, medium, and micro enterprises (“SMMEs”) in key industries. oCmpanies that hire individuals from targeted groups—such as fresh graduates or unemployed workers—on contracts longer than one year, and pay their basic pension, medical, and unemployment insurance according to regulations, can apply for a subsidy. The subsidy will cover 25% of the employees’ individual social insurance contributions and will be provided for up to one year. Companies need to apply for the subsidy before December 31, 2025, and once approved, they must pass the subsidy on to the eligible employees as soon as possible. The exact industries and target employee groups will be identified by provincial-level departments and approved by the local government.
To encourage youth employment, the Chinese government is strengthening the implementation of a one-time job expansion subsidy. Enterprises and social organizations that hire registered unemployed young people aged 16–24, sign labor contracts , and pay pension, unemployment, and work-related injury insurance contributions in full for more than three months, will be eligible for a one-time subsidy of up to 1,500 yuan per person. This policy is valid until December 31, 2025. The subsidy will be funded by the unemployment insurance fund. In regions where the fund’s reserve is less than one year, the required amount can be drawn from the employment subsidy funds.
The government will continue the skill upgrading subsidy policy. Employees who have contributed to unemployment insurance for over 12 months or receive unemployment benefits may get subsidies upon obtaining vocational certificates: RMB 1,000 for primary (Level 5), RMB 1,500 for intermediate (Level 4), and RMB 2,000 for senior (Level 3). Each subsidy can only be claimed once per occupation and level and cannot be combined with other training subsidies. Those with higher-level certificates are not eligible for lower-level subsidies. One subsidy per person is allowed per year. Provinces may adjust the policy based on local needs, including offering up to two extra subsidies and setting local standards.

Implication:
Eligible companies may take the benefit of the unemployment insurance contribution refund policy.

China: Measures on security of facial recognition technology enter into force.

On March 21, 2025, the Cyberspace Administration of China (“CAC”) and the Ministry of Public Security jointly issued the Security Management Measures for the Application of Facial Recognition Technology (the “Measures”), effective from June 1, 2025. These measures apply to the use of facial recognition technology (“FRT”) for handling facial information within the mainland China. However, these measures do not apply to the use of FRT to handle facial information for the research and development of facial recognition technology or algorithm training activities.

The key highlights of the measures:

Legal and Ethical Use: Activities involving the use of facial recognition technology to process facial information must comply with laws, be ethical, ensure data protection, and must not harm national security, public interest, or individual rights.
Purpose Limitation & Transparency: Facial recognition technology must be used only for specified and essential purposes, with minimal impact on individual rights and adopt strict safeguards. Before using FRT, handlers must inform individuals in clear, visible, and understandable terms about:

Name of the organization or individual handling the data;
Purpose and method of data processing and retention period;
Necessity and impact on personal rights;
Manner in which individuals can exercise their rights;
Any other required disclosures under law.

If any of this information changes, individuals must be notified. However, notification may be waived if exempted by law.

Consent Requirements: If facial information is processed based on an individual’s consent, that consent must be given voluntarily, clearly, and with full understanding. If laws require written consent, those rules must be followed. Individuals also have the right to withdraw their consent at any time, and organizations must offer an easy way to do so. However, withdrawing consent does not affect the legality of any processing done before the withdrawal.
Minors’ Information: While handling the facial information of minors under the age of 14 years , the consent must be taken from the child’s parents or legal guardians. Additionally, organizations must create specific rules for managing such data including how it is stored, used, transferred, and disclosed to ensure the security of minors’ personal information, in line with legal requirements.
Impact Assessment: Before using facial recognition technology to process facial information, personal information handlers must conduct a personal information protection impact assessment and keep a record of the processing activities. The assessment should evaluate:

Whether the purpose and method of processing are lawful, appropriate, and necessary;
The potential impact on individuals’ rights and whether mitigation measures are effective;
The risks of data leaks, tampering, loss, misuse, or unauthorized access, and the potential harm;
Whether the protective measures in place are legal, effective, and proportionate to the level of risk.

These assessment reports and related records must be retained for at least three years. If there are significant changes in the processing purpose or methods, or if a major security incident occurs, a new assessment must be carried out.

Equipment Placement Rules: Facial recognition equipment may be installed in public places only when necessary for maintaining public safety. The areas where facial data is collected must be appropriately designated in accordance with the law, and clear, visible notices must be displayed to inform individuals. Organizations and individuals are strictly prohibited from installing facial recognition equipment in private areas within public spaces—such as hotel rooms, public baths, changing rooms, and restrooms.
Security Requirements: Systems using facial recognition technology must implement robust security measures to protect facial data. These measures include data encryption, security audits, access controls, permission management, and intrusion testing and prevention. If the systems involve classified levels of network security or critical information infrastructure, the relevant national regulations on cybersecurity and infrastructure protection must also be followed.
Mandatory Filing: Personal information handlers must file the following information with the provincial-level internet information department within 30 working days once their facial recognition systems handle personal data for 100,000 or more individuals.:

Basic details of the personal information handler;
Purpose and methods of processing facial information;
Data volume and security protection measures;
Rules and procedures for processing facial data;
The personal information protection impact assessment report.

If any major changes occur in the filing information, updates must be submitted within 30 working days. When the use of facial recognition technology ends, cancellation procedures must be completed within 30 working days, and facial data must be lawfully deleted.

Complaint Mechanism: All organizations and individuals have the right to file complaints or reports with relevant authorities about the unlawful use of facial recognition technology. Departments responsible for personal information protection must promptly investigate such complaints in accordance with the law and inform the complainant or whistleblower of the outcome.

Implication:
Companies acting as personal data handlers and meeting the criteria for applicability of Facial Recognition Technology measures must take a proactive approach to compliance, ensuring that they meet the all the requirements to avoid legal and financial risks.

Denmark

Denmark: Parliament passes law to raise retirement age to 70 years by 2040.

Denmark Parliament recently adopted a law raising the official retirement age to 70 by the year 2040. Since 2006, Denmark has linked its retirement age to life expectancy, revising it every five years. The current retirement age of 67 will increase to 68 in 2030, then to 69 in 2035, and finally to 70 in 2040. This change will apply to all individuals born after December 31, 1970. The new law was passed with 81 votes in Favor and 21 against.

Implication:
Employers should monitor development in this regard and modify their human resource policies accordingly.

France

France: France Tax Agency updates withholding tax rates applicable to salaries, wages, pensions, and life annuities paid to non-residents.

On April 14, 2025, the French General Directorate of Public Finance updated the withholding tax rates applicable to salaries, wages, pensions, and life annuities paid to non-residents.

Withholding Tax Rates of the French Tax Code Applicable in 2025:

Rate	2025 Thresholds (EUR)	2024 Thresholds (EUR)
0%	Less than or equal to 17,122	Less than or equal to 16,820
12%	Greater than 17,122 and less than or equal to 49,667	Greater than 16,820 and less than or equal to 48,790
20%	Greater than 49,667	Greater than 48,790

In the overseas departments (DOM), the withholding tax rates of 12% and 20% are reduced to 8% and 14.4%, respectively.

Implications:
Businesses should take note of these changes and adjust their processes accordingly to comply with the revised withholding tax thresholds.

Germany

Germany: Parliament approved tax relief package including corporate tax rate cut from 15% to 10% over 5 years beginning 2028.

Germany’s upper house of the parliament approved the “Act for an immediate tax investment program to strengthen Germany’s business location” on July 11, 2025. The lower house had already approved it on June 26, 2025. The amendments include various measures such as reduction of general corporate tax rate, change in depreciation provision, research and development tax incentives, etc.

Declining Balance Depreciation
For movable fixed assets acquired or produced between July 1, 2025, and December 31, 2027, businesses can apply a declining balance depreciation which would be restricted to three times the straight-line rate depreciation. This incentive was last available for investments made between April and December 2024.

Gradual Corporate Tax Reduction from 2028
Germany will gradually reduce its corporate tax rate from 15% to 10% over a five year period, beginning in 2028 as under:

FY 2028: 14%
FY 2029: 13%
FY 2030: 12%
FY 2031: 11%
From FY 2032: 10%

Gradual Income Tax Reduction for Retained Earnings
To ensure tax neutrality between partnerships and corporations, Germany will reduce the income tax rate on retained earnings for partnerships starting in 2028. The rate will decrease in three stages—from the current 28.25% to 25%:

FY 2028 & 2029: 27%
FY 2030 & 2031: 26%
From FY 2032: 25%

Enhanced Tax Incentives for Electric Vehicles
Another amendment provides for a new tax incentive to promote the use of electric vehicles. For commercially used, purely electric vehicles acquired between July 1, 2025, and December 31, 2027, a declining balance depreciation schedule would apply as follows:

Year of acquisition: 75%
1st following year: 10%
2nd & 3rd following years: 5% each
4th following year: 3%
5th following year: 2%

This applies to electric passenger cars, commercial vehicles, trucks, and buses. Full annual depreciation is permitted regardless of the purchase month.

Company Car Benefit Taxation
For purely electric company cars acquired after June 30, 2025, the gross list price cap for the flat-rate 1% taxation rule will increase from EUR 70,000 to EUR 100,000. The “quarter rule” remains in effect, meaning only 25% of the vehicle’s list price is used to calculate the taxable benefit for private use.

Expanded R&D Tax Incentive from 2026
Effective January 1, 2026, the cost basis for calculating Germany’s research and development (R&D) tax incentive will increase from EUR 10 million to EUR 12 million. Additionally, for projects initiated after December 31, 2025, eligible expenses will also include additional overheads and other operating costs calculated at 20% of other eligible expenses. This expansion aims to further support innovation and encourage long-term R&D investment.

Implications:
Businesses should evaluate the impact of the corporate tax rate reduction, expanded depreciation benefit, and R&D incentives on their profitability.

Germany: Germany extends maternity protection to miscarriages effective from June 1, 2025.

German parliament amended the Maternity Protection Act on January 30, 2025, to extend maternity benefit for miscarriages from the 13th week of pregnancy. The amendment is effective from June 1, 2025.

Previously, miscarriages involving a fetus showing no signs of life, weighing under 500 grams, and occurring before the 24th week were not considered deliveries under the law. Thus, affected women were entitled to only paid sick leave if unfit for work. Post amendment, the law provides staggered protection as under:

From the 13th week: 2 weeks’ maternity protection
From the 17th week: 6 weeks’ maternity protection
From the 20th week: 8 weeks’ maternity protection

During this period, employees may not work unless they explicitly choose to do so. This consent can be withdrawn at any time.

Implication:
Employers should note the change regarding maternity protection and modify their policies.

Hong Kong

Hong Kong: Hong Kong raises age cap for skilled technical foreign employees to address labor shortage.

Hong Kong has increased the age limit for non-local technical workers seeking employment from 35 years to 40 years. The change was announced by the city’s labor chief after an extensive consultation, and it aims to better address the ongoing shortage of technical professionals. The new age range of 18 to 40 years is expected to attract a broader pool of qualified candidates to meet Hong Kong’s labor market demands. The scheme would apply stringent safeguards around qualification, scope of the job and age.

Implication:
Businesses planning to appoint non-local technically skilled workers should take advantage of the change in age cap.

Hong Kong: Legislative Councils approves amendment to definition of term continuous contract relevant for employment rights and benefits eligibility.

On June 18, 2025, Hong Kong Legislative Council passed the Employment (Amendment) Bill 2025, revising the definition of the term “continuous contract” under the Employment Ordinance. Employees on continuous contract qualify for several employment rights and benefits such as statutory holidays, sickness allowance, rest days, etc.

The amendment lowers the weekly working hours threshold to qualify as a continuous contract from 18 hours to 17 hours. Additionally, employees who work a total of 68 hours over any rolling four-week period will also be regarded as to be working under a continuous contract. This change is effective from January 18, 2026. Employees already meeting the existing threshold of 18 hours per week for four consecutive weeks, will not be affected.

Implication:
Employers should evaluate existing employment relationships in light of amended definition of continuous contract to identify additional employees meeting the criteria and make necessary changes in their staff policy.

India

India: MCA notifies e-forms for submission of financial statements and other details, expands disclosure requirement.

The Ministry of Corporate Affairs (MCA) has notified the Companies (Accounts) Second Amendment Rules, 2025, on May 30, 2025, which came into effect on July 14, 2025. The amendments aim to enhance corporate governance and promote safer, more inclusive workplaces.

The amendment introduces the following changes:

Introduction of e-forms – Rules bring in substantial modification for financial statement filing with the introduction of electronic forms which will replace current forms. The following e-forms are applicable:
e-Form AOC-1 – Statement containing salient features of the financial statement of subsidiaries / associate companies / joint ventures;
e-Form AOC-2, relating to related party disclosure;
e-Form AOC-4 and e-Form AOC-4 CFS, for filing of standalone and consolidated financial statements, respectively;
e-Form CSR-2, for filing of a report on corporate social responsibility by companies covered under Section 135(1) of the Companies Act, 2013.

Further, pdf copies of board reports and auditor’s reports are required to be digitally signed and attached. They should be formatted as per the specified requirements.
Now companies need to file extract of board report, auditor’s report (standalone) and auditor’s report (consolidated). These will capture essential information from these reports in machine readable format and will be submitted with the main forms.

Maternity Benefit Compliance disclosure: Companies must now confirm compliance with the Maternity Benefit Act, 1961, including provisions related to maternity leave and medical benefits for female employees.
Expanded POSH Disclosures: In addition to confirming the constitution of the Internal Complaints Committee (ICC), companies must disclose:

Number of sexual harassment complaints received during the year;
Number of complaints resolved;
Number of cases pending for over 90 days

Update on Employee Demographic Disclosures: While the Amendment Rules do not mandate disclosure of employee demographics, the format of the Extract of the Board Report issued by the MCA now requires companies to report the number of male, female, and transgender employees as of the end of the financial year.

Implication:
Companies should take note of the new requirements and make necessary changes to remain compliant.

Netherlands

Netherlands: Netherlands and Germany agree to amend tax treaty to support cross-border remote work.

On April 14, 2025, the Netherlands and Germany agreed to amend their tax treaty to ease tax obligations for cross-border workers who work remotely. As per the amendment, employees who live in one country and work for an employer based in the other may now work from home for up to 34 days per year without triggering additional tax liability in their country of residence.

Key features of the amendments:

Cross-border workers can work from home for up to 34 days annually and still be taxed only in the country where their employer is located. This arrangement is not available to individuals who regularly work 1–2 days per week from home, as they would exceed the 34-day limit.
A day counts as a remote workday if more than 30 minutes of work is performed from home.

Implication:
Employers with cross-border staff subject to the Netherlands and Germany treaty should check implications for their employees and update their policies.

Philippines

Philippines: Philippines issues guidance on VAT rules for cross-border digital services.

On May 9, 2025, the Philippines Bureau of Internal Revenue (“BIR”) issued Revenue Memorandum Circular No. 47-2025, providing detailed guidance on the application of Value Added Tax (“VAT”) on cross-border digital services. This follows the issuance of Revenue Regulations No. 3-2025, which require non-resident digital service providers (NRDSPs) to register and comply with Philippine VAT obligations.

NRDSPs must register with the BIR via the Online Registration and Update System (“ORUS”). The following information is required for registration:

Business name and trade name
Authorized representative’s name and Taxpayer Identification Number (“TIN”) (if any)
Foreign address
Contact details
Official registration document (e.g., Articles of Incorporation or Tax Residency Certificate)

A local representative is not mandatory. However, NRDSPs may appoint a resident third-party service provider (such as a law or accounting firm) to assist with registration, tax filings, remittances, recordkeeping, and other reporting duties.
Upon registration, the BIR will issue a Certificate of Registration (Form 2303) along with a Taxpayer Identification Number (“TIN”), which the NRDSP will use for filing VAT returns and remitting taxes due.
For B2B transactions, where digital services are sold to a Philippine business or government entity, the local buyer must withhold and remit the 12% VAT under the reverse charge mechanism. They should file BIR Form No. 1600-VT.
For B2C transactions, where the buyer is an individual not engaged in business, the NRDSP is directly liable for VAT. The NRDSP must file the VAT return using Form 2550-DS and remit payment through the VDS Portal under a simplified regime.
For taxpayers having both B2B and B2C transactions, Form 2550-DS will be used for VAT return filings, while Form 1600-VT is applicable for VAT withheld by local B2B buyers.
Separately, online marketplaces facilitating the sale of digital services would be deemed to be supplier and need to comply with VAT payment and return filing obligations.

Implication:
Non-resident businesses providing digital services in Philippines should evaluate their activities to remain compliant with the VAT law.

Poland

Poland: Poland amends Labor Code to introduce pay transparency requirements effective from December, 2025.

Poland has amended its Labor Code through the Act of June 4, 2025, partially transposing EU Directive 2023/970 on pay transparency. Rules would be effective after six months following their promulgation which means in December 2025. The rules introduce key pre-employment obligations for employers, aiming to promote equal pay for equal work across genders.

Key requirements include:

Salary disclosure: Employers must inform all job candidates of the salary rate or range for the position, including all forms of remuneration (monetary or in-kind), and disclose any applicable collective agreement provisions.
Timing: The above information can be provided in job advertisements, shared before interviews, or provided before employment begins.
Gender-neutral job ads: Job titles and descriptions must be gender-neutral.
Objective pay criteria: Remuneration decisions must be based on objective, non-discriminatory criteria.
Pay history ban: Employers may not ask candidates to disclose current or previous salary levels.

These requirements are part of broader EU efforts to strengthen pay transparency. Member states must fully transpose the Directive by June 7, 2026.

Implication:
Employers should update their recruitment policies to be compliant with new requirements.

Poland: Government approves draft bill for introduction of mandatory e-invoicing.

On June 17, 2025, the Polish Council of Ministers approved a draft bill to amend the Act on Tax on Goods and Services, introducing key measures to implement and support the rollout of the National e-Invoicing System (“KSeF”). The system aims to improve VAT compliance, reduce administrative burdens, and streamline invoicing processes.

The following are key features of the proposed e-invoicing system.

E-invoicing would become mandatory as under

From February 1, 2026: Mandatory for businesses with 2024 sales (including VAT) over PLN 200 million.
From April 1, 2026: Applies to all other businesses, including VAT-exempt taxpayers.

There would be certain transitional arrangements. Invoicing via cash registers would remain permitted until December 2026. Enterprises issuing monthly invoices below PLN 10,000 would continue to be exempt till December 2026. Any non-compliance or error will not be subject to penalty until the end of 2026.
Requirement to mention KSeF invoice number on payment is postponed currently. Under the new system, responsibility for storing invoices would be shifted from business to tax authorities. Offline 24 mode would be provided for issues of invoices during technical disruption.
VAT refund period would be reduced from 60 to 40 days, enhancing liquidity.

Implication:
Businesses should evaluate and update their system to be prepared for e-invoicing requirements.

Singapore

Singapore: Amends law to change reporting requirement for beneficial owner, nominee shareholders and nominee directors effective from June 16, 2025.

The Companies and Limited Liability Partnerships (Miscellaneous Amendments) Act 2024 (CLLPMA) came into force on June 16, 2025, along with related regulatory amendments, as announced in the official Commencement Notification 2025. The amendments include changes to the requirement relating to reporting beneficial ownership information and information on nominee shareholders and directors.

The following are the key changes:

The scope of the definition of the term ‘nominee shareholder’ has been widened. A person who either receives a dividend or votes on behalf of another person will be considered as nominee shareholder. Previously, both conditions had to be met.
Companies, and LLPs are required to submit details of nominee directors and nominee shareholders to the Accounting and Corporate Regulatory Authority (“ACRA”). Existing companies are required to file the information by December 31, 2025, while new companies will have to file this information at the time of their registration.
Foreign companies with a branch in Singapore are required to maintain register of nominee directors and also declare as part of their annual filing if they are exempted from maintaining the register of nominee directors, shareholders or beneficial owners.
Companies, foreign companies and LLPs are required to confirm and update their beneficial owner (registrable controllers) every year. Further, the register for beneficial owners should be maintained from incorporation date and an earlier grace period of 30 days is no long available
The amended law also provides for penalties for non-compliance.

Implication:
Entities should review their internal processes to ensure timely compliance with the new transparency obligations.

Spain

Spain: Permanent disability cannot automatically result in employment contract termination effective from May 1, 2025.

Effective from May 1, 2025, Spain’s Law 2/2025 introduces important changes to how employment is handled when an employee is declared permanently incapacitated. The law, published in the Official State Gazette on April 30, 2025, removes the automatic termination of employment in such cases and makes it conditional upon the employee’s will and the employer’s ability to adapt or reassign the role.

Under the revised law, an employment contract can only be terminated if:

There is no reasonable possibility to adapt the job or offer a compatible position, or
A suitable job offer is made and rejected by the employee.

The employee now has 10 calendar days from the date of the incapacity identification to confirm in writing whether they wish to continue the employment relationship.
The employer, in turn, is given a maximum of 3 months to assess and implement necessary job adjustments or to formally communicate, in writing and with justification, the decision to terminate if no viable alternative exists.
For small businesses with fewer than 25 employees, the cost of adapting a job position is considered an excessive burden if it exceeds the higher of the following:

The statutory compensation due for unfair dismissal, or
The employee’s six months’ gross salary (before accounting for any public subsidies or aid).

Implication:
Employers should update their HR policies in light of the new rule and assess possibility for job adaptations or reassignments in appropriate cases to ensure compliance.

Thailand

Thailand: Announced corporate income tax exemption and reduced individual income tax for highly skilled Thai professionals.

On March 24, 2025, the Thai Cabinet approved Royal Decree No. 793 B.E. 2568 (2025), under the Revenue Code, introducing new tax incentives aimed at encouraging highly skilled Thai professionals to return and work in Thailand. The decree provides both personal and corporate tax benefits, including a reduced personal tax rate and corporate income tax exemption on a portion of salary expenses. These benefits apply to individuals working for companies or partnerships operating within specified “target industries” from the effective date of the decree until December 31, 2029.

Reduced income tax for eligible employees: Thai professionals who meet specific qualifications and are employed by companies or juristic partnerships in designated target industries are eligible for a reduced tax rate of 17%. This reduced rate will apply from 25 March 2025 until 31 December 2029, provided the following conditions are met:

The individual is of Thai nationality.
They hold at least a bachelor’s degree.
They have at least two years of work experience outside of Thailand.
They begin working in Thailand between 25 March 2025 and 31 December 2025 for an approved employer, and the employer notifies the Revenue Department before the first salary payment.
The individual has not previously worked in Thailand in the year they begin claiming the reduced rate and has not lived in Thailand for 180 days or more in either of the two preceding tax years.
The individual must reside in Thailand for at least 180 days during the year the reduced tax rate is applied (with exceptions in the first or last year of eligibility).
All conditions and rules set by the Director-General of the Revenue Department must be satisfied.

Corporate tax relief for employers: Companies or partnerships operating in these designated target industries are entitled to a 50% corporate income tax exemption on the amount of salary expenses paid to eligible employees. This tax relief applies to salaries paid between 25 March 2025 and 31 December 2029, subject to specific rules and conditions set by the Director-General.
Eligible Target Industries: The tax incentives are available to companies or partnerships that operate in industries identified as “target” or “unique target” sectors under various laws and schemes and cover industries such as digital technology, robotics, advanced electronics, aviation, healthcare, and other innovation-driven fields.

Implication:
Employers should evaluate their eligibility for benefit if they are employing relevant employees.

Thailand: Thailand cuts corporate tax to 10% for qualifying SEZ businesses under Royal Decree No. 797

Effective June 6, 2025, Thailand has reduced the corporate income tax rate from 20% to 10% for profits earned by eligible businesses in Special Economic Zones (“SEZs”) under Royal Decree No. 797 issued by the Thai Revenue Department on June 2, 2025, and published in the Royal Gazette on June 5, 2025. The reduced rate will apply for 10 consecutive accounting years.

To be eligible, companies or juristic partnerships must operate within designated SEZs and engage in targeted activities as identified by the SEZ Development Policy Committee. Qualifying income must come from goods produced in the SEZ or services provided and consumed within its boundaries. SEZ in Tak, Mukdahan, Sa Kaeo, Songkhla, Trat, Nong Khai, Narathiwat, Chiang Rai, Nakhon Phanom, and Kanchanaburi are eligible to this benefit subject to certain conditions including formal registration with the Revenue Department as an SEZ-based entity, no claim of other overlapping tax exemptions or incentives, etc.

Implication:
Businesses should study the new incentive and evaluate if they want to take benefit.