Supplementary Global Updates – January 2025

Supplementary Global updates – a quick glance

Austria:

  • Austria passed the Progression Compensation Act 2025, revising the individual income tax slabs and allowances, effective January 1, 2025.
  • Austria amends small businesses VAT scheme, increases VAT registration threshold from EUR 35,000 to EUR 55,000 with effect from January 1, 2025.
  • Teleworking Act passed to regulate remote work is effective from January 1, 2025.

Kazakhstan:

  • Increase in the standard tax deduction amount and VAT registration threshold consequent to change in monthly calculation index (“MCI”) effective from January 1, 2025.
  • Social security contribution rates increased effective from January 1, 2025.

Luxembourg:

  • Individuals associated with entities registered in Luxembourg Companies Register must submit their Luxembourg National Identification Number (“LNIN”).
  • Luxembourg passes Law to lower corporate tax rates, update individual tax brackets and credits.

Norway:

  • Norway mandates Ultimate Beneficial Ownership reporting requirements with phasing time till July 31, 2025.
  • Norway publishes Budget 2025 introducing changes related to personal taxation.

Romania:

  • Romanian Parliament amends Companies Law to digitalize shareholders’ meetings and streamlining corporate governance.
  • Romanian government adopts “Emergency Ordinance No. 156/2024” introducing key fiscal amendments effective January 1, 2025.
  • Romania to introduce mandatory e-invoicing for B2C transactions effective from January 1, 2025.
  • Romania extends obligation of submitting SAF-T declaration to non-resident businesses and small businesses effective from January 1, 2025.

Saudi Arabia

  • New Commercial Register Law enacted introducing nation-wide commercial registration.
  • Saudi Arabia implements labor reforms, revamping provisions for Saudi and non-Saudi workers.

United Arab Emirates:

  • UAE implementing e-invoicing system from 2026.
  • Obligations related to Economic Substance Regulations (“ESR”) (i.e., filing and notification requirements) removed from financial years starting from January 1, 2023.

USA:

  • Colorado’s minimum wage and overtime exemption salary threshold increased, effective from January 1, 2025.
  • Effective October 1, 2024, overtime wages will be exempt from Alabama state income tax.

Vietnam:

  • Vietnam passed new law on Social Insurance (“SI”), effective July 1, 2025, expands scope of persons covered and reduces contribution period from 20 years to 15 years for pension entitlement.
  • Vietnam enacts a new VAT law; to be effective July 1, 2025.

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