January 2024 Global Update

 

Global updates – a quick glance

 

Argentina: The minimum and maximum basis for employee social security contributions increased to a monthly salary of ARS 35,603.99 and ARS 1,157,112.83 respectively from December 1, 2023.

 

Belgium: 

• The government submitted a draft law to Parliament to make B2B e-invoicing mandatory, to be effective starting January 1, 2026.
• Parliament approved a new law requiring employers with more than 50 employees to appoint a “person of trust” to address psychological issues, effective from December 1, 2023.

 

Bulgaria: 

• Revision in the thresholds for arrivals and dispatches under Intrastat system for 2024.
• Amended the VAT Act to increase the turnover threshold for VAT registration, from BGN 100,000 to BGN 166,000, effective from January 1, 2024.

 

Canada: 

• Changes were implemented to the Canadian Labor Code relating to the minimum notice period for individual termination and the requirement of providing a written statement of benefits to terminated employees, effective from February 1, 2024.
• Canada and Quebec’s social security rates and maximum bases were announced for 2024.
• A new administrative policy was implemented for determining remote employee’s provinces of employment for payroll purposes, effective from January 1, 2024.
• Federal and certain provincial income tax slabs increased for 2024.
• Reporting requirements were introduced for companies to report any forced labor incidences, effective from January 1, 2024.

 

China: China makes significant amendments to the Companies Law, effective starting July 1, 2024. 

• Amended Company Law that mandates shareholders to fully pay subscribed capital within five years of the establishment of the company; 
• Removed the ceiling on the maximum number of directors on boards; and
• Now allows small LLCs to appoint an audit committee instead of a board of supervisors.

 

Colombia: Colombia published a decree that provides the final regulations for the Significant Economic Presence (“SEP”) provisions, effective from January 1, 2024.

 

Costa Rica: 

• Published tax rates and slabs for the tax year 2024.
•  Enacted tax reforms to achieve exclusion from the EU’s list of non-cooperative jurisdictions.

 

Cyprus:

•  Introduced a reduced VAT rate of 3% for selected goods and services and added new goods to a 0% VAT rate, effective from July 21, 2023.
• The maximum insurable earnings for social insurance contributions increased from EUR 60,060 to EUR 62,868, effective from January 1, 2024.
•  Implemented a new remote working law, effective December 1, 2023.

 

Czech Republic: 

• Increased parental allowance, effective from January 1, 2024.
• Published the budget for the year 2024 with significant changes including an increase in corporate tax rates and consolidation of reduced VAT rates into a single rate .

 

Denmark: A global minimum tax was introduced through the Minimum Taxation Act, effective from December 31, 2023.

 

Finland: The 2024 budget introduced a revision in the tax rates and income limits for different income levels, and increased the number of different deductions allowed.

 

France:

• The Supreme Court overruled an earlier ruling warranting significant changes to paid leave entitlements for employees.
•  Parliament approved new timelines for e-invoicing implementation.
• Legislation was passed to obligate small and mid-size businesses to implement a “Profit Sharing Scheme” effective from December 1, 2023.
• The Finance Act of 2024 was published on December 30, 2023 with significant changes, including lowering the threshold for transferring pricing documentation and stringent sanctions for non-compliance of TP documentation requirements.

 

Germany:

• Extended the timeline for mandatory e-invoicing of B2B transactions until January 1, 2027.
• Changed the maximum income bases and rates for social security contributions for 2024.
• Implemented new rules for working parents who need to take care of a sick child, effective from January 1, 2024.
• Implemented a new global minimum tax, effective from January 1, 2024.

 

Greece: Made significant amendments to the Greek Labor Law in line with the EU directive on ‘Transparent and predictable working conditions’ effective from September 26, 2023.

 

Hungary: Implemented a new global minimum tax, effective from January 1, 2024.

 

India:

• The Finance Ministry clarified the Goods and Services Tax (“GST”) and its applicability on corporate guarantees between related entities; 18% GST is applicable on actual consideration or 1% of the value of the guarantee, whichever is higher.
• The Ministry of Corporate Affairs amended existing company rules for:

• the mandatory appointment of a designated person for significant beneficial owner compliance. 
• the mandatory dematerialization of securities of medium and large-sized private companies.

• The Ministry of Corporate Affairs introduced new regulations requiring the identification of significant beneficial owners of LLPs.
• The Ministry of Corporate Affairs amended LLP rules to mandate that maintaining partners must register from the date of incorporation and disclose beneficial interest in LLP contributions.

 

Ireland:

• Introduced five days of paid leave for domestic violence, effective from November 27, 2023.
• Introduced Enhanced Reporting Requirements (“ERR”) for employers in relation to non-taxable, reportable benefits provided to employees, effective from January 1, 2024. 

 

Italy:

• Mandated E-Invoicing for Micro-Businesses, effective from January 1, 2024.
• Published the 2024 budget with significant amendments, including changes to personal income tax; implementing global minimum tax; revised corporate residency rules; and announced social security contribution relief .

 

Lithuania: 

• In the 2024 budget, significant amendments included an increase in the monthly tax exemption threshold for residents; an extension of tax incentives for investment projects, and more .
• Thresholds for Intrastat returns increased from January 1, 2024.

 

Malaysia:

• Parliament approved Finance (No.2) Bill for 2024, introduced capital gains tax, and submitted Global Minimum Tax proposals.
• The Companies Commission of Malaysia (“CCM”) issued a new Code of Ethics for company directors and secretaries, effective from January 1, 2024.

 

Netherlands:

• Parliament approved the Tax Plan for 2024; with significant changes including a revision in personal income tax slabs and rates applicable to Box 1 income, plus amendments to 30% ruling regime for expatriate employees. 
• The revised social security contribution rates were announced for 2024.
• The upper house of Parliament approved the bill for implementing public Country-by-Country (“CbC”) reporting.

 

Serbia: Parliament amended the income-tax and social security contribution law, effective from January 1, 2024. The non-taxable salary limit increased from RSD 21,712 to RSD 25,000 and the minimum and maximum monthly contribution base for social security contributions was revised. 

 

Sweden: 

• Implemented a Global Minimum Tax effective from January 1, 2024.
• In the 2024 budget, significant amendments included an increase in the VAT turnover threshold limit and a reduced excise tax on petrol and diesel .

 

Switzerland: 

• Increased the Value Added Tax (“VAT”) rates, effective from January 1, 2024.
• Implemented a global minimum tax, effective from January 1, 2024.

 

Taiwan: Made amendments to the acts regarding sexual harassment, to be made effective starting March 8, 2024.

 

United Kingdom:

• In the Autumn Finance Bill  published on November 27, 2023, Autumn Statement proposal includes revisions for R&D tax relief, capital allowance; and a reduction of employee national insurance contributions rates from 12% to 10%.
• The government proposed an amendment to simplify the Transfer of Undertakings (Protection of Employment) Regulations (“TUPE”).
• The Employment Relations (Flexible Working) Act of 2023 (Flexible Working Act) will become effective starting July 2024, and will make significant changes to employees’ eligibility for flexible working arrangements.
• Scotland presented the Statement for the Scottish budget to revise the personal income tax bands from year 2024-2025.