Global Updates April 2024

• Australian Taxation Office (“ATO”) has announced changes to individual income tax rates and thresholds effective from July 1, 2024. 

• Australia introduces right to disconnect effective from August 26, 2024. 

• Preparation of employee training plan and informing employee their training rights made mandatory for employer with 20 or more employees effective from April 1, 2024. 

• Small business scheme for VAT extended to foreign companies meeting certain conditions, effective January 1, 2024. 

• Law enacted to mandate public CbC reporting for multinationals effective for financial years beginning on or after June 22, 2024. 

• Monthly individual tax brackets and employee social security contribution table revised for 2024. 

• Constitutional Amendment introducing major indirect tax reforms enacted. 

• Canada: Federal budget for 2024 presented on April 16, 2024. Individual income tax thresholds revised for 2024; 100% Capital Cost Allowance (CCA) deduction in the first year of use on certain assets proposed; waiver of withholding requirement on payments to non-residents in certain situations proposed. 

• Quebec: The budget for 2024 presented on March 12, 2024. Individual income tax thresholds revised for 2024; changes to refundable and non-refundable tax credit proposed for development of e-businesses. 

• Quebec: Introduction of Act to prevent psychological harassment and sexual violence at workplace effective from March 27, 2024. 

• China released new regulation relaxing requirements for cross-border transfer of personal data, effective from March 22, 2024. 

• Shanghai reduces employee basic medical insurance payment rate from 10% to 9% from March 1, 2024.  

• Thresholds increased for the preparation of transfer pricing local file. 

• Cyprus increased the Intrastat threshold for arrivals effective from January 1, 2024. 

• Working Time Act amended, and new provisions introduced to record working time of employees effective from July 1, 2024. 

• Revision in the thresholds for filing Intrastat Returns for 2024. 

• Revised social security ceilings and income tax scales announced for 2024. 

• France released new guidance regarding employer tax due from companies that hire or host foreign nationals. 

• France relaxed rules for renewal of parental presence leave. 

• The first weekday after Christmas has been added as a new statutory holiday beginning 2024. 

• Hong Kong’s budget for 2024 increased the business registration fees from HKD 2,000 to HKD 2,200 and proposed introduction of a two-tiered standard tax rates regime for “salaries tax” and “tax under personal assessment”. 

• Thresholds for Intrastat returns increased effective from January 1, 2024. 

• Hungary amends progressive retail turnover tax rates effective from January 1, 2024. 

• Italy introduced new rules for the expatriate regime effective from January 1, 2024. 

• Italy introduces a biennial preventive agreement to simplify tax obligations for small taxpayers. 

• Italy imposes stricter requirements for VAT representatives, effective from February 22, 2024. 

• Israel Tax Authority updated thresholds for invoicing and VAT reporting for 2024. 

• Tax Authority introduced digital system to facilitate employee termination process effective from January 2024. 

• Japan passes Tax Reform 2024 with following changes: 

• Blue tax filing companies are entitled to a 30% income deduction from qualifying income from intellectual properties for a period of seven years starting from April 1, 2025. 

• Additional tax credits of 5%-15% for companies on increasing the wages of their employees, extended for another three years till March 31, 2027. 

• From April 1, 2025, foreign enterprises offering digital services through a digital platform are liable for consumption tax. 

• Japan amended Labor Standard Ordinance effective from April 1, 2024, revising employer obligations regarding notification related to workplace and duties. 

• Service tax rate has been increased from 6% to 8% beginning March 1, 2024. 

• Companies (Amendment) Act 2024 has introduced the requirement of identifying and verifying beneficial owner and maintaining beneficial owner register beginning from April 1, 2024. 

• South Korea enacted tax reform for 2024, introduced additional obligations for multinational entities to submit supplementary transfer pricing documentation. 

• The Personal Information Protection Commission amended enforcement decree for Personal Information Protection Act, laying down rules for appointment/qualification of chief privacy officer, disclosure requirements for cross border data transfer, etc. 

• Thailand issues notifications laying down rules for cross-border transfer of personal data. 

• The Ministry of Finance extended electronic filing deadline for returns/payments due between February 1, 2024, to January 31, 2027. 

• UK Spring Statement 2024 announced on March 6, 2024; Employee’s national insurance contribution rate reduced from 10% to 8%; residence-based regime proposed for non-UK domiciled individuals; revision in the VAT registration and de-registration threshold.  

• Provisions of Economic Crime and Corporate Transparency Act 2023 to improve quality of information in company register are effective from March 4, 2024 

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