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Benefits admin for overseas employees: Don’t let it scare you

Co-Founder and COO Gita Bhargava shares advice for taking the stress out of global benefits administration with BenefitsPro.

Czech Republic Changes in Insurance, UBO, and Reporting Policies

The Czech Republic has introduced several changes in insurance, UBO, and reporting policies for the year of 2021. As of January 1st, 2021, the income base amount for health insurance contributions has been raised by CZK 500. The threshold for health insurance participation which had been previously set at CZK 3,000 is now at CZK 3,500.

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Brazil Introduces “Balcão Único” (Single System) Initiative

Government officials in Brazil have introduced the “Balcão Único” initiative, streamlining the incorporation process for companies. With this new system in place, companies will be able to save time and money in efforts toward getting their business up and running.

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Singapore Budget Highlights 2021

Budget projections for the year of 2021 were delivered in Singapore on the 16th of February. As a COVID-19 support initiative, the Singapore government allocated almost S$100 billion across five budget schemes in conjunction with the standard expenditures of the prior year. The budget statement also disclosed that the fiscal year of 2020 had presented an immense budget deficit to Singapore.

2021 UK Budget Highlights Released

The 2021 UK budget was presented to parliament in early March. The budget will continue to incorporate allocations to various coronavirus support measures. There are no notable changes in key rates for this year. Corporate tax rate remains at 19%, although it will rise considerably in the next two years. The insurance contribution rates for both employee and employer also remains the same.

2021 Leave and Social Security Policies in Switzerland

For the year of 2021, several changes have been implemented into employee leave and social security policies in Switzerland. These changes grant employees with additional paid leave time offerings, and oblige employers to higher contribution rates to specific pension plans.

Economic Employer Concept Introduced in Sweden

The economic employer concept has been implemented in Sweden for the year of 2021. In previous labor regulations, taxes were not applicable to non-Swedish employees who were receiving remuneration from a non-Swedish company. Under this scheme, employers are viewed merely as the company under which labor is carried out.

Netherlands Social Security Rate Changes

New provisions have been proposed by the Social Affairs and Employment Ministry, which directly impact social security contribution rates for 2021 in the Netherlands. Unemployment insurance (AWF) contribution is set at 2.7% for contract employees with no set end-date, and 7.7% for provisional workers and employees on flextime.

China Introduces Electronic Invoices for VAT Payments

The State Taxation Administration (STA) of China released a report containing a list of eligible regions where taxpayers who have been newly registered may utilize electronic VAT special invoices, “e-fapiao.” This is an amendment to the formerly used system, “fapiao,” in which all VAT special invoices were submitted in paper form.

Italy Implements COVID-19 Relief Bill to Employers and Employees

With the intent to aid both employees and employers during the COVID-19 pandemic, Italy implemented a COVID-19 Relief Bill, “Ristori-bis,” which has been effective in the country since October 24th, 2020. The significant factors entailed in the decree are set out below. The obligation to make contributions to social benefits are suspended.

Employee Stock Option Tax and New Leave in Canada

Canadian government officials have introduced several new provisions for the year of 2021, including a new employee stock option tax structure, and new leave options. Beginning July 1,2021, eligible businesses will be offered a new structure for taxation of their Employee Stock Option. Preferential tax treatment may be applicable to some employees at an annual vesting max of CAD 200,000.

Australia Changes in Tax, Hiring Restrictions, and Leaves

Various provisions have been implemented in Australia for 2021 which have set-forth updated structures for tax, leave, and hiring restrictions. A new, lowered tax rate and raised tax threshold has been proposed by government officials in New South Wales, effective as of July 1,2020. This will be a provisional decrease in the rate in, and will put it at 4.85% for 2020-21 and 2021-22.

Brexit: The new VAT treatment and whom it applies to

The UK has set forth VAT rules for the sale of goods, just concurrently with the culmination of the Brexit transition period. Effective from January 1st, 2021, UK VAT is now applicable for the sale of goods by foreign taxable persons. UK businesses who have utilized a deferral for VAT payments, may now repay the deferred payments in reduced and interest-free payments over an 11 month period.

Shanghai Tax Bureau Now Collecting Social Insurance

China has implemented a new social insurance collection process in which the Shanghai tax bureau is now collecting the insurance. Effective since November 1st, 2020, the Shanghai tax bureau is now collecting social insurance instead of the social bureau. It is imperative that employers are compliant and ensuring that payments are being made to the correct bureau.

COVID-19 Relief and LTC Changes in India

Given the immense impact that the pandemic has had on travel and employment, government and finance officials have implemented several Covid-19 relief packages and LTC changes in India. The Indian Parliament has now passed 3 main labor reform bills for 2020; the Social Security code, the Industrial Relations Code, and the Occupational Safety, Health and Working Conditions Code.

Higher Minimum Wage in the Czech Republic

As of January 1st,2021, government officials have issued an executive order posing a higher minimum wage rate in the Czech Republic. It has been raised from a monthly rate of CZK 14,600 to CZK 15,200. The rate for employees who hold work permits and or employee cards has also been raised by 4.1%.

Ultimate Beneficial Owner Filing Requirements in Italy

Ultimate beneficial ownership filing requirements in Italy mandates that all companies operating in Italy are required to report and maintain an ultimate beneficial owner. The Legislative Decree 231/2007 has proposed a mandate that all business entities must file information pertaining to beneficial ownership (“UBO”) by March 15, 2021.

Changes to Leave Policies in Ireland

Ireland leave changes for 2020 include increases in unpaid parental leave time, and introduction of new paid sick and parental leave (CoVid-19) Bill. As of September 01, 2020, the unpaid parental leave time in Ireland has been raised from 22 weeks to 26 weeks per parent.

Australia Increases Annual Leave Time for Employees

In light of the current pandemic, many employers around the world have began to implement changes into their workplace policies, especially those pertaining to leaves. Employees in Australia are now provisionally entitled to take up to two-times their annual leave at half-pay.

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