Global Updates – January 2023
Global updates – a quick glance
Argentina: Foreign individuals and legal entities, without a presence in Argentina who are processing personal data of Argentine data subjects, can now register with the authorities through a newly available online form.
Australia: Increased penalties under the Australia’s Data Privacy Act and expansion of extraterritorial application of the Act.
Bulgaria: Increased the VAT registration threshold from BGN 50,000 to BGN 100,000 effective from January 1, 2023.
Canada: Canada and Quebec’s social security contribution rates and maximums for 2023 were announced.
China:
- China Introduces new employer obligations to prevent sexual harassment of women in the workplace effective January 1, 2023.
- Small-scale taxpayers with monthly sales less than RMB 100,000 are exempt from VAT payment liability until December 31, 2023; The VAT rate for small taxpayers is reduced from 3% to 1%.
Colombia: The timeline has been extended for submission of Ultimate Beneficial Owners’ (“UBO”) information.
Czech Republic: The VAT registration threshold has been increased from CZK 1 million to CZK 2 million effective January 1, 2023.
European Union: The Draft Adequacy Decision on proposed EU-US Data Privacy Framework for cross-border data transfers published.
France:
- A scheme to buy-back reduced working time (“RTT”) days has been introduced.
- France passes the Finance Bill 2023:
- Business Contribution on Added Value (“CVAE”) rates halved for the year 2023; CVAE to be abolished beginning in 2024.
- Reduction in territorial economic contribution (“CET”).
Germany:
- Changes in maximum income bases and rates for social security contributions were announced for 2023.
- Yellow sick notes have been replaced by electronic sick notes for employees covered under public insurance from January 1, 2023
- Income tax changes announced for 2023 include increased employee allowance, revised income tax slabs, etc.
- Additional information relating to fictitious Ultimate Beneficial Owner (“UBO”) needs to be reported to the Transparency Register effective January 1, 2023
Hungary: New requirement to provide transfer pricing information as a part of Annual Corporate Income Tax has been introduced.
India:
- India publishes Draft Digital Data Protection Bill withdrawing the earlier Bill on data privacy.
- Central Board of Direct Tax allows the paper filing of Form 10F until March 31, 2023.
- 100% “work from home” allowed for eligible employees of Special Economic Zone Units until December 31, 2023.
Ireland: The Statutory Sick Pay (“SSP”) scheme commences January 1, 2023.
Mexico: Employees are entitled to increased paid vacation leave of 12 days after completion of one year of service effective January 1, 2023,
Morocco: Simplifies corporate tax rate; publishes corporate tax rates applicable from 2023 to 2026.
Netherlands:
- VAT registration thresholds to be maintained at EUR 25,000 until December 31, 2024.
- Dutch Parliament approves the Tax Plan for 2023:
- Personal Income Tax (“PIT) slabs and rates revised.
- Base Corporate Income Tax (“CIT”) rate increased from 15% to 19% with the income bracket for basic income tax rate reduced from EUR 395,000 to 200,000.
Philippines: Reduces personal income tax rates by 5% for income up to PHP 2 million and by 2% for income between PHP 2 million to PHP 8 million effective from January 1, 2023.
Serbia:
- Increases the non-taxable salary limit from RSD 19,300 to RSD 21,712 with mandatory electronic filing of personal income tax return.
- From January 1, 2023, employer’s contribution rate for pension and disability insurance reduced from 11% to 10%.
Singapore: Increased financial penalty under the Personal Data Protection Act (“PDPA”), effective from October 1, 2022.
Slovakia: Amends Labor Code to transpose EU Directives on predictable working conditions.
Slovenia:
- Slovenian Parliament passed amendments to Income Tax rates; top income tax rate increased to 50% from 45%.
- Personal Data Protection Act (“ZVOP-2”) adopted for transposing GDPR.
South Korea: Amends income-tax law, reduces corporate tax rate by 1% effective January 1, 2023.
Spain: Faster formation of limited liability companies (“LLC”) possible through CIRCE platform and reduction in minimum share capital requirement from EUR 3,000 to EUR 1 for LLCs.
Sweden: National income tax thresholds for individuals increased to SEK 598,500 from SEK 540,700 for the year 2023.
Switzerland: The VAT rate increased to 8.1% from 7.7% effective January 1, 2024.
Taiwan: The maximum insured amount for universal health insurance (part of social security contribution) has been revised to TWD 219,500 effective July 1, 2022.
Thailand: Amends Civil and Commercial Code effective from February 16, 2023, to reduce the minimum number of promoters required for a new company from three to two and to allow virtual attendance of directors for board meetings.
United Arab Emirates:
- Amendments to VAT Law effective January 1, 2023, allowing businesses engaged in 100% export activity or zero-rated supply to seek exemption from VAT registration and extending time-limit for tax audit in certain situations.
- UAE Ministry of Finance releases corporate tax law, clarifies tax treatment for Qualifying Free Zone Person” (“QFZP”), introduces transfer pricing provisions.
United Kingdom: The Autumn budget proposes changes to the personal income-tax threshold of an additional tax rate of 45%, also amends R&D expenditure credit provisions.