The rate of Value Added Tax (VAT) was increased from 7.5 percent to 12 percent on 1 July 2018. The new rate applies to all policies going into effect on or after 1 July 2018. Medical insurance premiums are subject […]
Beginning 1 January 2019, the qualifying period of the “30 percent ruling,” which allows expatriate employees a tax-free allowance or a reimbursement of 30 percent of their employment income, will be shortened from eight to five years. The amendment will […]
Amendments to the income tax law clarified that mutual termination agreements should benefit from income tax exemption within the limit of the mandatory severance payments amount to which the employee is entitled on termination. The exceeding amount should not benefit […]
Draft tax reform legislation would substantially eliminate social security contributions for employers and double them for employees. Employers currently pay 31.18 percent and employees 9 percent. The reform would see employers pay 1.47 percent and employees 19.5 percent. The government argues that […]
The Australian Minister for revenue and financial services announced an amnesty period during which employers can self-correct past noncompliance with superannuation guarantee requirements. The amnesty agreement will be available for a 12-month period from 24 May 2018, to 23 May […]
Decree 2250 grants tax benefits to any voluntary pension contribution to the compulsory pension fund, starting December 2017. Voluntary contributions are through payroll and pretax. Tax breaks apply only to contributions up to 30 percent of monthly income or 40 […]
The Treasury Laws Amendment (2018 Measures No. 4) Bill, which is currently before the House, states that from 1 July 2018, employers who underpay or fail to pay their employees’ superannuation will not only face financial penalties but also up […]
As of 1 January 2018, bonuses paid to employees as warrants or options, that do not exceed 20 percent of total gross earnings, are exempt from employer and employee social security contributions.
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