Global updates – a quick glance
Australia:
- Australia introduced public country-by-country reporting (“CbC”) requirements effective for the financial year beginning on or after July 1, 2024.
- Australian Global Minimum Tax law received royal assent on December 10, 2024, which is effective from January 1, 2024.
Belgium: The Belgian parliament passed a law to make e-invoicing mandatory for business-to-business (“B2B”) transactions effective from January 1, 2026; subject to EU’s approval.
Brazil:
- Revises social security contribution table for 2025.
- Global Minimum Tax introduced through Law No. 15,079/24 effective from January 1, 2025.
- Complementary Law No. 214/2025 sanctioned regulating the indirect tax reform.
Bulgaria:Thresholds for arrivals and dispatches under Intrastat system and statistical value reporting revised for 2025.
Canada:
- Canada and Quebec’s social security contribution rates and maximum bases for 2025 announced. (i.e., January 1, 2025, to December 31, 2025).
- Quebec brings changes to the requirement of providing a medical certificate for a sick leave by employees, effective from January 1, 2025.
- Ontario enacts Bill – 229 introducing new leaves such as child placement leave, and long-term illness leave.
- Federal and certain provincial income tax slabs increased for 2025.
- Ontario government published Regulations 477/24 prescribing information to be provided by the employers to the employees before starting the employment, effective July 1, 2025.
- Some provisions of Ontario’s Employment Standards Act, 2000 relating to pay transparency and job posting requirements amended by Bills 149 and 190 effective from January 1, 2026.
Chile: Chile enacts the personal data protection law aligning with EU GDPR standards.
China:
- Starting from January 2025, statutory paid holiday entitlement increases from 11 to 13, with one additional day added to both Spring Festival (Chinese New Year) and Labour Day holidays.
- Fully Digitalized E-Fapiao implemented across the entire China, effective from December 1, 2024.
- SAMR issued the Company Registration Management Implementation Measures, effective February 10, 2025, to implement the new Company Law, standardize registration management, ensure timely capital contribution.
- China enacts new VAT law to be effective from January 1, 2026.
Costa Rica: Costa Rica publishes tax rates and slabs for the tax year 2025.
Cyprus: Cyprus House of Representatives approved implementation of global minimum tax on December 12, 2024, which is effective from January 1, 2024.
Czech Republic:
- Czech Republic revised provisions related to VAT registration thresholds from January 1, 2025.
- Czech Republic abolishes the guaranteed wages for Commercial/ Private sector revising the classification of the groups for the guaranteed wages for State/ Public sector and increases the minimum monthly wages for the year 2025.
European Union:
- VAT in Digital Age (“ViDA”) Agreement finalized to implement uniform VAT rules across EU, mainly focusing on digital reporting requirements, platform economy and single VAT registration; to be implemented in phased manner.
- Effective January 1, 2025, SME VAT exemption scheme expanded for cross border transaction.
Finland:Mandatory VAT registration threshold increased from EUR 15,000 to EUR 20,000 with effect from January 1, 2025.
France:The French Parliament approved the Special Finance Bill, 2025, maintaining continuity of the existing tax rules in 2025 until the new Finance Bill for 2025 is passed.
Germany:
- Changes in maximum income bases and rates for social security contributions for 2025.
- The Annual Tax Act enacted, includes changes in income tax, VAT registration thresholds, introduction of small business VAT exemption scheme, effective from January 1, 2025.
- Germany introduces key reforms for digital contracts, document retention effective from January 1, 2025.
Greece: Greece sets new thresholds for criteria for categorization of enterprises.
India:Multi-Factor Authentication (“MFA”) for GST e-invoicing /e-way bill system access to apply to all taxpayers gradually.
Indonesia: Enacted new KIA Law amending provisions relating to maternity leave effective from July 2, 2024.
Ireland:
- Ireland grants right to postpone maternity leave, effective from November 20, 2024.
- Ireland introduces amendments to Companies Act, 2014 with key changes on virtual meetings and strike off provisions effective from December 3, 2024.
Italy: Italy published Budget for the year 2025; introduced new non-taxable allowances for employees; reduced corporate tax rate incentive; small business VAT exemption scheme; and changes to Digital Service Tax, effective from January 1, 2025.
Japan:
- Freelancer Protection Act came into effect to promote fair treatment and timely payments for freelancers.
- Government unveils tax reforms proposals for 2025; proposes new special defense corporate tax at 4% of the standard corporate tax amount, further special corporate tax rate applicable to SME for income up to JPY 8 million proposed to be increased from 15% to 17% for fiscal years where annual taxable income exceeds JPY 1 billion.
Malaysia:
- Increases wage ceiling for contributions to the Social Security Organization (“SOCSO”) from RM 5,000 to RM 6,000.
- New requirement to include beneficial owner information in the Annual return to be effective from November 30, 2024
Morocco: Morocco enacts Finance Law 2025, revises tax brackets and rates for individual taxation.
Netherlands: Netherlands Senate approves 2025 tax plan with changes to personal income tax, social security rates, and 30% ruling applicable to foreign workers.
Poland:
- Polish President signed the law to implement Global Minimum Tax on November 15, 2024, which is effective from January 1, 2025.
- Poland announced revised thresholds for small taxpayers and social security contribution caps, effective from January 1, 2025.
- Poland passes legislation to make December 24 (Christmas Eve) a public holiday effective from February 1, 2025.
Singapore:
- Singapore implements Global Minimum Tax effective from January 1, 2025.
- Singapore amends its paternity and shared parental leave provisions.
Serbia:
- VAT and e-invoicing law amended to introduce requirement of preliminary VAT return, requirement to register status as VAT payer or not on the e-invoicing system, etc.
- Digital sick leave system introduced for seamless employer notifications from March 2025
South Africa: Amendments to Employment Equity Act to be effective January 2025, employers having more than 50 employees regardless of the turnover need to comply with the law as turnover based threshold for applicability removed.
South Korea:Amendments to the law promoting childcare support to be effective from February 23, 2025; amendments include increase in the childcare leave and paternity leave.
Spain:
- Spain implemented Global Minimum Tax effective from December 22, 2024.
- Spain introduces new additional solidarity contribution effective from January 1, 2025.
- Gradual reduction in corporate income tax rate for micro-enterprises and small companies effective from January 1, 2025.
Sweden:
- Sweden revises the National Income Tax Threshold for 2025.
- Sweden increases VAT registration threshold to SEK 120,000 from SEK 80,000 effective from January 1, 2025.
Switzerland: Switzerland increases the child and education allowance from the year 2025.
Thailand: Introduction of Employee Welfare Fund contribution to be effective from October 1, 2025.
United Kingdom:UK Autumn Statement 2024, announced on October 30, 2024; employer’s NI contribution rate increased from 13.8% to 15%; secondary threshold at which the employer becomes liable to pay NI reduced from GBP 9,100 to GBP 5,000, effective from April 1, 2025.