Managing the Global Mobility Function 2012: Now Available
Tag Archive
Belgium: Social Security Regime Regarding Certain Bonus Plans Modified
Belgium’s social security regime with respect to “collective non-recurrent results-linked bonuses” has been modified as from January 1, 2013. The bonus system, however, remains attractive from the tax and social security perspectives, allowing employers to grant bonuses at limited cost. Collective Bonus Exempt from Tax and Ordinary Social Security Contributions Since January 2008, a... »
People’s Republic of China: Totalization Agreement with Korea Could Affect Assignment Costs
A Social Security Treaty (“the Treaty”) has been concluded between the People’s Republic of China (“China”) and the Republic of Korea (“Korea”).1 To benefit from the Treaty, Korean companies should review the social insurance participation of their assignees working in China in a timely manner and arrange to obtain and submit the required documents... »
India – Social Security Agreement Signed with Finland
Recently, India signed a social security agreement (‘SSA’) with the Republic of Finland. SSAs like this one with Finland generally help foster cross-border business activity engaged in by multinational employers and their globally mobile employees by preventing double social security contributions and the loss of social security benefits. Key Benefits of Agreement The SSA... »
Switzerland: New Social Security Agreement with Japan Enters into Force
The Social Security Agreement (“SSA”) between Switzerland and Japan came into force on 1 March 2012.1 The SSA covers seconded employees, self-employed persons, public employees, employees on board a sea-going vessel, and members of diplomatic missions. Seconded employees covered under the SSA are exempt from social security contributions in the host country for a... »
Czech Republic: Recap of 2011 Tax Legislation Changes
The Czech Republic saw several legislative changes in 2011 concerning employers and employees that came into effect starting 1 January 2012. Below we briefly summarize the important changes.1 • Rates: The super-gross wage and the 15-percent personal income tax rate are to remain in force in 2012. (For more on the super-gross wage, see... »
Russia and Social Security System Reforms
In December 2011, a new federal law1 introducing changes to the Russian social security system passed the final stage of approval. The new regulations, which came into force on 1 January 2012, expand the scope of individuals considered “insured individuals” and will impact the application and collection of insurance contributions to the state pension,... »
Luxembourg Tax Developments
We highlight some recent developments in Luxembourg, including the treaty with Barbados, transparency and exchange of information, and the new social security parameters. Treaty between Luxembourg-Barbados Enters into Force The income and capital tax treaty and protocol between Luxembourg and Barbados signed on 1 December 2009, in London (published in the country’s official journal,... »
United Kingdom: Revised Guidance on Residence
The U.K. tax authority, Her Majesty’s Revenue & Customs (HMRC), has issued a revised version of its U.K. tax residence guidance “HMRC6 – Residence, Domicile and the Remittance Basis.”1 As this revision contains mainly minor changes to the version last updated in December 2010, the changes have not been described or highlighted as revisions... »
Czech Republic and Tax Reform Legislation
The Czech government recently submitted to Parliament draft legislation on a single collection point, whereby, from 1 January 2013, the payment of all taxes, customs duties, and social security contributions, state employment policy contributions, general health insurance contributions, and legal injury insurance is expected to be concentrated in a single collection point. The legislation... »
Romania and EU Employers Registering for Romanian Social Security
Up until recently, the Romanian tax authorities have refused to accept the registration for Romanian social security purposes of European Union (EU)–based employers, except for companies employing seasonal workers performing work outside Romania. The arguments used by the tax authorities were based on the fact that there was no specific provision under domestic Romanian... »