PwC - Global Employment Tax Roundup

The latest edition of PwC’s Global Employment Taxes Newsletter has been published and whilst you might not have time to read all 57 pages, I thought I'd draw your attention to some country articles, particularly relevant if you have any activities being undertaken in that country:

AFRICA

South Africa

• Two pot retirement scheme

AUSTRALASIA

Australia

• New residency rules drafted on residency status for inbounds, plus clarification around complex outbound situations where ties haven’t been completely closed off
• Electric vehicles exempt from benefits tax

New Zealand

• Employment status judgement for ‘major ride hailing drivers’ – went the same way as in the UK, they are employees
• Proposed changes to PAYE, superannuation scheme and fringe benefit taxes for cross-border workers

ASIA/MIDDLE EAST

China

• Exemption rates for individual income tax for high-end/short supply talent in Hainan Free Trade Port
• New individual income tax exemptions for private pensions

Indonesia

• Benefits in kind now taxable
• Increased personal income tax rates

Japan

• Widened eligibility for health & welfare pension insurance for part-time workers

Singapore

• Employer pension contributions may be taxable for expats

South Korea

• Flat rate of tax for foreign employees (20.9%) on application

EUROPE

Belgium

• Big changes to the taxation of IP

Denmark

• Employment status case at Supreme Court – drivers were employees because
  • they were paid even if there was no work
  • lacked control over work
  • didn’t have other clients
  • had no financial risks (as company paid costs)

Germany

• Inflation compensation bonus and wage tax guidelines
• Lump sum deductions for income-related expenses

Ireland

• Small benefits exemption scheme increased from EUR 500 to EUR 1,000 and allows for 2 gifts per year (not one)
• Special Assignee Relief Programme extended to 2025
• Correcting PAYE errors

Italy

• Goods/services from employer to employee up to a cost of EUR 3,000 exempt from tax
• Tax free travel allowance and working from home allowance thresholds all increased

Netherlands

• 30% ruling – reimbursement of tax free costs to foreign employees

Portugal

• Withholding taxes on overtime working

Spain

• Special tax regime for non-residents
• New digital nomad visa for remote workers (valid for one year)

Sweden

• Retroactively earned income for non-residents potentially taxable in Sweden if physically paid after arrival in Sweden

Switzerland

• Retain documentation for cross-border workers to log home-office days
• New data protection laws

NORTH AMERICA

United States

• Inflation Reduction Act
• Mandatory/elective pension requirements for employers

SOUTH AMERICA

Argentina

• Social security cap for employees

Brazil

• Brazil/UK DTT
• Social security due on ‘total remuneration’