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Regulatory Updates

Newsletter – January 2021

Australia

Changes in New South Wales (NSW) payroll tax rate and threshold, retrospectively from July 1, 2020

Introduction of JobMaker Hiring Credit – an incentive for employers to hire young job seekers

Changes in Unpaid Parental leave – Access to 12 months of unpaid parental leave for parents impacted by stillbirth or infant death, option to take flexible unpaid parental leave etc.

Brazil

Minimum Wage raised from BRL 1,045 to BRL 1,100 effective from January 1, 2021 and changes to employee social security (INSS) threshold for 1st bracket

Revenue threshold limits set for 2021 under simplified tax regime (Simples Nacional) for tax payment under ICMS and ISS

Canada

Canada announces Commercial Emergency Rent Subsidy (CERS) program for rent support for businesses

A new bill, the Digital Charter Implementation Act, 2020 introduced for protection of personal information in the private sector

Canada imposes GST on digital or electronic services provided by foreign based vendors (B2C) from July 1, 2021

Canada Revenue Agency released guidance for employees for claiming deduction on home office expenses through Personal Income Tax (PIT) Returns of 2020

Preferential taxation of Employee Stock Option to eligible entities effective July 1, 2021

Ontario government has extended COVID-19 period and Deemed Infectious Disease Emergency Leave (IDEL) Protections through July 3, 2021

Quebec: Amendments effective January 1, 2021 regarding parental leave, paternity and maternity leaves, etc.

Automobile deduction limits and expense benefit rates announced for 2021

China

Nationwide introduction of Electronic Special VAT Invoices for newly registered VAT payers 18

Czech Republic

Introduction of individual income tax and other tax changes

Changes to business law and required actions by corporations in 2021

Minimum wages increased to CZK 15,200

France

Amendments to the Finance Bill 2021 on France B2B E-Invoicing

French National Assembly Approves Finance Bill 2021

Germany

Child benefit increases from January

VAT rate increased to 19% from 16%

VAT payers can file quarterly returns from 2021

Amendments in annual tax law 2020

India

Introduction of quarterly GST returns with monthly payments for small taxpayers, effective from January 1, 2021

Salary restructuring may be needed effective from April 01, 2021 (estimated date)

New GST rule of restricting ITC for discharging GST liability to 99% is not applicable for MSMEs

Date for conducting board meeting through Video Conference /Other Audio Visual means (VC/OAVM) extended till June 30, 2021

Italy

Issuance of ‘Ristori-bis’ decree to provide relief for both employers and employee during COVID-19 emergency period.

Mandatory appointment of a fiscal representative for VAT registration for UK entities.

Transfer pricing documentation implementing provisions published

Mexico

Teleworking measures amending the labor law

The national minimum wage increased

Netherlands

Social Security Rates for 2021

Dutch senate approves a lower rate of corporate tax for small and medium-sized entities.

Singapore

The parliament passes “The New Personal Data Protection (Amendment) Bill 2020”

Sweden

Introduction of ‘Economic Employer Concept’ in Sweden from January 1, 2021

Switzerland

Introduction of new provision on paid care leave for employees.

Changes in social security rates

United Kingdom

EU-UK trade deal receives the royal assent of the Queen; the deal is now officially the UK law

Proposed increase in statutory leave pay rates from April, 2021

New e-commerce VAT rules are effective from January 1, 2021

Off payroll working rules from April 6, 2021

United States of America

Federal

New Mileage rates for 2021

Mandatory reporting of Beneficial Ownership of the Company under newly enacted Corporate Transparency Act (CTA) for Private Companies

Massachusetts

Employees entitled to Paid Family and Medical Leave (PFML) Benefits from January 1, 2021

Global Updates

Hungary

Reporting Obligation of all invoices in Online Invoice Reporting System

Poland

Mandatory to file New JPK_VAT for VAT return

Minimum wages ceiling limit changed

Malaysia

Malaysia Budget 2021 highlights:  Reduction in personal income tax rate, Increase in various tax relief limits, decrease in employee EPF contribution rate etc.

Transitional Period for Reporting of Beneficial Ownership Extended

Philippines

Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill passed by the Philippines Senate – Proposed reduction in corporate tax rate

Philippines’s Social Security Commission (SSC) revised contribution rates from January, 2021

UAE

UAE amends company law allowing 100% foreign ownership in the onshore companies span.


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