Regulatory Updates

Newsletter – January 2020

  • Australia – Obtain Director Identification Number (DIN) prior to their appointment as Director is likely to become effective soon.
  • Brazil – Brazil reduces the social security costs of 28-29% for new employees between age of 18 -29
  • India – India has proposed a bill on data privacy, designed on the lines of GDPR.
  • France – seconded employees to France to have same right as the local employees.
  • Japan – Consumption tax rate has been increased to 10%.
  • Hong Kong – employee maternity leave has been increased to 14 weeks from 10 weeks
  • Ireland – details of Ultimate beneficial owners (UBO) must be provided in a new form (non-resident UBOs)
  • Switzerland – Corporate Income Tax rates have been significantly lowered at cantonal level.
United KingdomThe Information Commissioner (ICO) of the UK has imposed a fine of EUR 320,000 on Doorstep Dispensaree Ltd. (Pharmacy) for violation of Article 32 of GDPR i.e. Security of processing.
SwedenSwedish Data Protection Authority imposed a fine of EUR 35,000 on Nusvar AB (data controller/processor) due to insufficient legal basis for data processing.
GermanyThe German Real Estate Company Deutsche Wohnen SE (the irket Company) fined for EUR 14.50 million for keeping personal data in the system while the purpose of storage was removed.
Telecommunications provider “one & one” fined for EUR 9.55 million for posing risk to all its customer’s personal data.
A Hospital in Rhineland-Palatinate fined for EUR 105,000 for several breaches of GDPR, which includes false invoicing and organizational deficiencies in patient management.
SpainThe Spanish Data Protection Authority has fined Corporación radiotelevisión espanola a fine of EUR 60,000 for violations of the EU General Data Protection Regulation (“GDPR”) due to lack of technical and organizational measures in place for information security.
FranceFrench data protection authority Commission Nationale de l’Informatique et des Libertés (“CNIL”) imposed fine of EUR 500,000 on Futura Internationale for infringement of provisions of EU General Data Protection Regulation in connection with cold calling campaigns.

Table of Contents

  • Australia  
  • Directors should obtain Director Identification Number (DIN) prior to appointment as Director. 
  • Brazil  
  • Elimination of penalty towards Severance Fund (“FGTS”) for any termination without cause, effective from January 1, 2020. 
  • Employment program proposed for young people for promoting employment in Brazil 
  • New contribution rates announced for social security in Brazil for private employees 
  • Canada  
  • Introduction of Digital Services Tax (“DST”) at 3% – Proposed 
  • Changes in Canada pension plans (CPPs) and other Pension Plans for 2020 
  • Ontario: Compliance for making the workplace practices accessible for employees with disabilities 
  • Czech Republic  
  • Minimum wage and guaranteed wage increase. 
  • France  
  • Changes in Social Security ceiling thresholds for 2020 
  • Rights of seconded employees in France 
  • Secondment of foreign employees in France 
  • Germany  
  • VAT return submission frequency changed for newly incorporated companies 
  • VAT registration threshold for small business increased to EUR 22,000 
  • Hong Kong  
  • Changes to statutory maternity leave 
  • India  
  • Electronic invoicing introduced for business-to-business (“B2B”) transactions 
  • Increase in limit of Paid-up Share Capital (“PUC”) for mandatory appointment of Company Secretary 
  • India introduces Data Privacy Bill in the Parliament 
  • Ireland  
  • National Minimum Wage increases from EUR 9.80 to EUR 10.10, and employer Pay Related Social Insurance (“PRSI”) threshold increases from EUR 386 to EUR 395 with effect from February 01, 2020 
  • Reporting of beneficial ownership information by people not having Personal Public Service Number (“PPSN”) in form BEN-2. 
  • Japan  
  • The consumption tax rate increased 
  • Mexico  
  • Mexico’s Daily General Minimum Wage increased from MXP 102.68 to MXP 123.22 with effect from January 01, 2020 
  • Netherlands  
  • Dutch “New small businesses scheme” provides VAT exemption for the Dutch businesses, w.e.f. Jan 1, 2020 
  • Dutch Social Security rate changes for 2020; total state social security contributions are maintained at 27.65% 
  • Singapore  
  • Proposal for increasing Goods and Service Tax (“GST“) rates 
  • Switzerland  
  • Corporate tax rate reduced at cantonal level with the introduction of Tax Reform and AHV Financing (“TRAF”) 
  • United Kingodom  
  • Increase in Holiday pay calculation period from 12 weeks to 52 weeks for workers without fixed hours or pay, effective from April 06, 2020