January 2023 Global Regulatory Update

 

Global Updates – January 2023

 

Global updates – a quick glance

 

Argentina: Foreign individuals and legal entities, without a presence in Argentina who are processing personal data of Argentine data subjects, can now register with the authorities through a newly available online form.

 

Australia: Increased penalties under the Australia’s Data Privacy Act and expansion of extraterritorial application of the Act.

 

Bulgaria: Increased the VAT registration threshold from BGN 50,000 to BGN 100,000 effective from January 1, 2023.

 

Canada: Canada and Quebec’s social security contribution rates and maximums for 2023 were announced.

 

China: 

• China Introduces new employer obligations to prevent sexual harassment of women in the workplace effective January 1, 2023.
• Small-scale taxpayers with monthly sales less than RMB 100,000 are exempt from VAT payment liability until December 31, 2023; The VAT rate for small taxpayers is reduced from 3% to 1%.

 

Colombia: The timeline has been extended for submission of Ultimate Beneficial Owners' (“UBO”) information.

 

Czech Republic: The VAT registration threshold has been increased from CZK 1 million to CZK 2 million effective January 1, 2023.

 

European Union: The Draft Adequacy Decision on proposed EU-US Data Privacy Framework for cross-border data transfers published.

 

France: 

• A scheme to buy-back reduced working time (“RTT”) days has been introduced.
• France passes the Finance Bill 2023:

• Business Contribution on Added Value (“CVAE”) rates halved for the year 2023; CVAE to be abolished beginning in 2024.
• Reduction in territorial economic contribution (“CET”).

 

Germany:

• Changes in maximum income bases and rates for social security contributions were announced for 2023.
• Yellow sick notes have been replaced by electronic sick notes for employees covered under public insurance from January 1, 2023
• Income tax changes announced for 2023 include increased employee allowance, revised income tax slabs, etc.
• Additional information relating to fictitious Ultimate Beneficial Owner (“UBO”) needs to be reported to the Transparency Register effective January 1, 2023

 

Hungary: New requirement to provide transfer pricing information as a part of Annual Corporate Income Tax has been introduced.

 

India: 

• India publishes Draft Digital Data Protection Bill withdrawing the earlier Bill on data privacy.
• Central Board of Direct Tax allows the paper filing of Form 10F until March 31, 2023.
• 100% “work from home” allowed for eligible employees of Special Economic Zone Units until December 31, 2023.

 

Ireland: The Statutory Sick Pay (“SSP”) scheme commences January 1, 2023.

 

Mexico:  Employees are entitled to increased paid vacation leave of 12 days after completion of one year of service effective January 1, 2023,

 

Morocco: Simplifies corporate tax rate; publishes corporate tax rates applicable from 2023 to 2026.

 

Netherlands: 

• VAT registration thresholds to be maintained at EUR 25,000 until December 31, 2024.
• Dutch Parliament approves the Tax Plan for 2023:

• Personal Income Tax (“PIT) slabs and rates revised.
• Base Corporate Income Tax (“CIT”) rate increased from 15% to 19% with the income bracket for basic income tax rate reduced from EUR 395,000 to 200,000.

 

Philippines: Reduces personal income tax rates by 5% for income up to PHP 2 million and by 2% for income between PHP 2 million to PHP 8 million effective from January 1, 2023.

 

Serbia:

• Increases the non-taxable salary limit from RSD 19,300 to RSD 21,712 with mandatory electronic filing of personal income tax return.
• From January 1, 2023, employer’s contribution rate for pension and disability insurance reduced from 11% to 10%.

 

Singapore: Increased financial penalty under the Personal Data Protection Act (“PDPA”), effective from October 1, 2022.

 

Slovakia: Amends Labor Code to transpose EU Directives on predictable working conditions.

 

Slovenia:

• Slovenian Parliament passed amendments to Income Tax rates; top income tax rate increased to 50% from 45%.
• Personal Data Protection Act (“ZVOP-2”) adopted for transposing GDPR.

 

South Korea: Amends income-tax law, reduces corporate tax rate by 1% effective January 1, 2023.

 

Spain: Faster formation of limited liability companies (“LLC”) possible through CIRCE platform and reduction in minimum share capital requirement from EUR 3,000 to EUR 1 for LLCs.

 

Sweden: National income tax thresholds for individuals increased to SEK 598,500 from SEK 540,700 for the year 2023.

 

Switzerland: The VAT rate increased to 8.1% from 7.7% effective January 1, 2024.

 

Taiwan: The maximum insured amount for universal health insurance (part of social security contribution) has been revised to TWD 219,500 effective July 1, 2022.

 

Thailand: Amends Civil and Commercial Code effective from February 16, 2023, to reduce the minimum number of promoters required for a new company from three to two and to allow virtual attendance of directors for board meetings.

 

United Arab Emirates:

• Amendments to VAT Law effective January 1, 2023, allowing businesses engaged in 100% export activity or zero-rated supply to seek exemption from VAT registration and extending time-limit for tax audit in certain situations. 
• UAE Ministry of Finance releases corporate tax law, clarifies tax treatment for Qualifying Free Zone Person” (“QFZP”), introduces transfer pricing provisions.

 

United Kingdom: The Autumn budget proposes changes to the personal income-tax threshold of an additional tax rate of 45%, also amends R&D expenditure credit provisions.