Newsletter – March 2020
(The impact of COVID 19 and stimulus packages are covered in a separate note)
Global updates – a quick glance
China - China provides reduction in social security contributions to help businesses.
India – Ministry of Corporate Affairs (“MCA”) has introduced a new SPICE+ web facility for incorporating a company in India. One form can now be used to do all initial registration and also to open the bank account.
- all domestic companies will be required to File new “Form 10-IC” to opt for reduced corporate tax rate of 22%.
- In a big relief to many companies, the Dividend Distribution Tax (tax on dividends) is shifted to individuals instead of companies.
France - The popular Bons de Souscription de Parts de Créateur d’Entreprise (“BSPCE”) stock options scheme will now be available to foreign companies employing in France
Sweden - Effective from January 01, 2020, minimum share capital required to incorporate private limited company in Sweden has been reduced from SEK 50,000 to SEK 25,000
Germany – Principles for the Keeping and Storage of Books, Records and Documents in Electronic Form and for Access to Data.
Ireland – Universal Social Charge (“USC”) threshold limits change from February 01, 2020.
Italy - Digital Service Tax (“DST”) is levied at 3% w.e.f January 01, 2020.
Mexico – Non-resident e-services providers will have to get VAT registered and adhere to the VAT monthly reporting requirements.
Netherlands – Implementation of UBO register delayed without any specified date.
UK – The budget has highlighted the off-payroll working rules (commonly known as IR35) that will be implemented on April 06, 2020 (as previously announced)
Recent instances of GDPR fine in the EU
Country |
GDPR Fines |
Italy |
‘TIM’ (telecommunications operator) fined for EUR 27.8 million for GDPR violation and lack of appropriate security measures to protect personal data by Garante (Italian Data Protection Authority) |
‘Gas and Electric company’ fined for EUR 11.5 million for GDPR violation by Garante, concerning illicit processing of personal data for promotional activities and unsolicited contracts for supply of gas and electricity. |
|
Garante fines the city of ‘Francavilla Fontana’ for EUR 10,000 for inappropriate processing of health related data. |
|
Netherlands |
Dutch data protection authority fines EUR 525,000 to royal ‘Dutch Tennis Association’ for selling personal data of its members to sponsors |
Spain |
Spanish data protection authority (“AEPD”) fines ‘Vodafone España’ EUR 120,000 for GDPR violations of processing of personal data without consent. |
Spanish data protection authority (“AEPD”) fines ‘Iberdrola Clientes’ EUR 50,000 for GDPR violation of termination of contract without consent and simultaneously registration of 3 new contracts. |
|
Spanish data protection authority (“AEPD”) fines ‘Vodafone España’ EUR 75, 000 for GDPR violation of signing a portability contract for a phone line with a third party without their knowledge or consent. |
|
Spanish data protection authority (“AEPD”) fines ‘Vodafone Espana S.A.U.’ EUR 44000 for GDPR violation of mistakenly sending a contract for services to the wrong person. |
|
Spanish Data Protection Agency (“AEPD”) has fined ‘EDP ENERGIA, S.A.U.’ EUR 75,000 for GDPR violations for processing of personal data without a legal basis and signing up for services without consent. |
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Spanish Data Protection Agency (“AEPD”) has fined ‘Vodafone’ EUR 48,000 for GDPR violations for failure to implement appropriate technical and organizational measures to ensure a level of security appropriate to the risk. |
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Spanish Data Protection Agency (“AEPD”) fines ‘HM Hospitales’ EUR 48,000 for GDPR violations of inability to demonstrate that it adequately guaranteed security about the claimant’s personal data. |
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Spanish Data Protection Agency (“AEPD”) fines ‘Vodafone’ EUR 42,000 for GDPR violation due to inadequate security measure for protection of personal data. |
Table of Contents
Revised employee social security contributions for private sector employees
Quebec: From May 01, 2020, rise in Minimum wage from CAD 12.50 per hour to CAD 13.10 per hour
Canada Automobile Allowance increased by one cent for 2020
New law on Internet content and governance regulation with effect from March 01, 2020
Changes in employee stock option scheme for encouraging startup companies in France
Updates in data protection law – employee consent by emails will be allowed
Statutory Holidays to be increased from 12 to 17 Days per Year
Hong Kong Budget 2020-2021 Highlights
India Union Budget 2020-21 Highlights
New tax forms Form 10-IC to opt for reduced corporate tax rates for domestic companies
Universal Social Charge (USC) limits change from February 01, 2020.
Real-time reporting of invoices for the amount above NIS 5,000 (USD 1310) for all B2B transactions
Digital Service Tax (DST) of 3% to be levied w.e.f January 01, 2020
Non-resident e-services providers to comply with VAT registration and filing requirements.
Unidad de Medida y Actualización (UMA) amounts updated from February 01, 2020
The Dutch UBO Register which was to be implemented by January 10, 2020 is delayed
Changes in tax treatment of benefits in kind from year of assessment 2020
Singapore Budget 2020 Highlights
South Korea amends labor laws w.e.f. January 2020; more flexible family-care leave
UK’s plan to introduce point-based immigration system with effect from January 01, 2021
UK allows 2 weeks paid bereavement leave for working parents with effect from April 06, 2020
UK Employment Allowance: Change in eligibility criteria for businesses from April 06, 2020
UK: Introduction of import VAT and Customs controls post Brexit transition period of 11 month
(The impact of COVID 19 and stimulus packages are covered in a separate note)
Revised employee social security contributions for private sector employees
Ordinance no. 3,659 of February 10, 2020, provides for the revised* employee social security contribution (i.e. National Social Security Institute – INSS) threshold and rates for private sector employees. The same is as follows:
From January 01, 2020 to February 29, 2020 –
Contribution wage (BRL) |
Non-Cumulative Rate For INSS Collection Purposes |
Up to 1,830.29 |
8% |
From 1,830.30 to 3,050.52 |
9% |
From 3,050.53 to 6,101.06 |
11% |
From March 01, 2020 –
Contribution wage (BRL) |
Progressive Rate For INSS Collection Purposes |
Up to 1,045.00 |
7.5% |
From 1,045.01 to 2,089.60 |
9% |
From 2,089.61 to 3,134.40 |
12% |
From 3,134.41 to 6,101.06 |
14% |
*Please note that the rates as per the Constitutional Amendment 103 of November 12, 2019 have been substituted by Ordinance no. 3,659 of February 10, 2020.
Implication
Employers are required to make necessary changes in their payroll to comply with new employee social security rates, especially noting the differences in the amounts in first 2 months.
Provincial Budget highlights 2020 – British Colombia introduces new top personal income tax rate of 20.5% and requirement for Provincial sales tax registration etc., Nova Scotia reduces general corporate income tax rate by 2%
British Colombia
British Columbia’s Finance Minister Carole James delivered the Province’s Budget for the year 2020 on February 18, 2020. The key highlights of budget are as follows:
For Individuals
Tax Year 2019 |
Tax year 2020 |
||
Taxable Income (In CAD) |
Tax rate |
Taxable Income (In CAD) |
Tax rate |
0 to 40,707 |
5.06% |
0 to 41,725 |
5.06% |
40,707.01 to 81,416 |
7.70% |
41,725.01 to 83,451 |
7.70% |
81,416.01 to 93,476 |
10.50% |
83,451.01 to 95,812 |
10.50% |
93,476.01 to 113,506 |
12.29% |
95,812.01 to 116,344 |
12.29% |
113,506.01 to 153,900 |
14.70% |
116,344.01 to 157,748 |
14.70% |
Over 153,900 |
16.80% |
157,748.01 to 220,000 |
16.80% |
|
|
Over 220,000 |
20.50% |
For Companies
Provincial Sales Tax (PST)*
* Provincial sales tax (“PST”) is a retail sales tax that applies when a taxable good or service is purchased, acquired or brought into British Colombia, unless a specific exemption applies.
Nova Scotia
Nova Scotia’s Minister of Finance, Karen Casey, presented the province’s budget 2020 on February 25, 2020. The key highlights of budget are as follows:
For Individuals
For Companies
Implications
Effective from May 01, 2020, the minimum wage in Quebec will be increased by CAD 0.60 an hour. Thus, minimum wage in Quebec will increase from CAD 12.50 per hour to CAD 13.10 per hour.
Canada Automobile Allowance increased by one cent for 2020
For 2020, there is CAD 0.01 (1 cent) increase in income tax deduction limits on tax-exempt allowances paid by employers to employees who use their personal vehicles for business purposes (mileage allowance).
Particulars |
2019* |
2020* |
For first 5,000 kilometers driven |
CAD 0.58 per kilometer |
CAD 0.59 per kilometer |
And each additional kilometer thereafter |
CAD 0.52 per kilometer |
CAD 0.53 per kilometer |
*In the Northwest Territories, Yukon, and Nunavut, there is an additional four cent per kilometer allowed for travel.
On February 18, 2020, China government announces temporary relief from social security contribution for the period February to June 2020 in following manner:
In addition to the above benefit. Companies can also apply for deferring payment related to Housing provident fund. Such companies will have a grace period for paying Housing provident fund contribution from February to June 2020 without affecting employee’s interest.
*Criteria for determining Small and Medium Sized Company vary from industry to industry. Usually the range is between
Implication
Such temporary relief will benefit companies in saving payments related to compensation and benefits and will also help them to cope up with losses suffered due to corona outbreak.
The payrolls need to be adjusted to avail the benefits.
Small-Scale taxpayers in all Sectors are allowed to issue Special VAT invoices with effect from February 01, 2020[a2] [SC3]
Starting from February 01, 2020 Small scale taxpayers in all sectors (earlier this was allowed to specific sectors such as hotel industry, construction industry, software and IT industry etc.) will now be allowed to issue Special VAT invoices* to its customers in accordance with circular issued by State Administration Tax of China in August 2019.
*Special VAT invoices is one of the important documents for claiming off set of the input VAT against output VAT thereby reducing the VAT liabilities. But it is to be noted that special VAT invoices are subject to stricter supervisions by the tax authorities.
New law on Internet content and governance regulation with effect from March 01, 2020
China New law on internet content and regulations has been published and will be in effect from March 01, 2020. The new law requires companies or organization hosting website in china to make following changes in their website governance guidelines:
Implication
Companies which are hosting website in china should update their internet content and governance as per the new law otherwise they will be liable for legal consequences.
Changes in employee stock option scheme for encouraging startup companies in France
French government has introduced changes in one of the most commonly used employee stock option schemes in startup companies viz, Bons de Souscription de Parts de Créateur d’Entreprise (“BSPCE”).
Now the BSPCE scheme will also be allowed for foreign startup companies with France based employees. Moreover, under this scheme employee will be allowed to exercise the stock options at fair market value giving the possibility of discount as compared to valuation derived from latest fund raising.
Further, exemption available to employer from employer’s contribution (Cotisations Patronales) under allocations of free shares scheme (Attributions Gratuites d’Actions/AGA) is also expanded. Now the benefits are also applicable to large companies with 250 to 4,999 employees. Earlier this benefit was limited to small companies only with less than 250 employees.
Implication
The popular Bons de Souscription de Parts de Créateur d’Entreprise (“BSPCE”) stock options scheme will now be available to foreign companies employing in France.
From January 01, 2020, new version of GoBD (GrundsätzezurordnungsmäßigenFührung und Aufbewahrung von Büchern, Aufzeichnungen und Unterlagen in elektronischer Form sowiezumDatenzugriff - Principles for the Keeping and Storage of Books, Records and Documents in Electronic Form and for Access to Data) is published. The following changes will be needed for IT and data systems in the companies:
Following are the changes in data protection law, employment law and social security:
Increase in minimum wages from EUR 9.19 per hour to EUR 9.35 per hour and miscellaneous changes
Statutory Holidays to be increased from 12 to 17 Days per Year
On January 14, 2020, Hong Kong government announces its intention to increase statutory holidays from 12 to 17 per year. Following will be the 5 additional holidays:
Implications
The employers will have to factor in additional holidays and adjust their employee handbooks.
The Financial Secretary of Hong Kong presented the budget for the year 2020 – 2021 to the legislative council on February 26, 2020. The key highlights of budget are as follows:
For Individuals
For employers/companies
India Union Budget 2020-21 Highlights
The Finance Minister Nirmala Sitharaman presented the Union Budget for the year 2020-21 on February 01, 2020. As mentioned in budget statement, India is now the 5th largest economy in the world. The key highlights of budget are as follows:
For Individuals
Finance Minister has removed around 70 exemptions, deductions (e.g. deductions under Chapter VI-A of Income Tax Act – which includes deduction for LIC[A4] , Investment in Equity Linked Saving Scheme (“ELSS”), Medical insurance premium etc.) with a view to simplify the tax regime.
Existing rates (For Financial year 2019-20) |
Proposed rates in Union Budget 2020-21** (For Financial year 2020-21) |
||
Annual Taxable Income (in INR) |
Tax rate |
Annual Taxable Income (in INR) |
Tax rate |
0 to 250,000 |
0% |
0 to 250,000 |
0% |
250,001 to 500,000 * |
5% |
250,000 to 500,000* |
5% |
500,001 to 1,000,000 |
20% |
500,001 to 750,000 |
10% |
1,000,001 and above |
30% |
750,001 to 1,000,000 |
15% |
|
|
1,000,001 to 1,250,000 |
20% |
|
|
1,250,001 to 1,500,000 |
25% |
|
|
1,500,001 and above |
30% |
* Individual taxpayers having taxable income up to INR 500,000 get full tax rebate and are not required to pay income tax. Please note that taxable income exceeding INR 500,000 do not get any benefit from such tax rebate and hence individuals have to pay income tax on full taxable income.
** As the new tax regime will be optional for the taxpayers and hence an individual who is currently availing deductions, exemption under the Income Tax Act may choose to forgo them and pay tax in the new regime. Some of the common deductions that need to be forgone include – House rent allowance, Leave travel allowance, Standard deductions, Interest on property, Investment related deductions under 80C, 80D, 80DD etc.
Note – surcharge and cess will continue to apply at existing rates, depending up on the level of individual’s income.
For employers – the employers will need to obtain confirmation from the employees whether they wish to shift to the new tax regime and calculate the withholding taxes accordingly. The salary structures may need tweaking in such cases. Also, this will be an annual option, so the confirmation will need to be obtained every year.
For Companies
Goods and Service Tax (GST)
Once these proposals are passed by the Parliament, these changes will become effective from the financial year 2020-21.
Ministry of Corporate Affairs (MCA) has introduced a new SPICE+ web facility for incorporating a company in India. The major differences with the existing form have been identified in bold -
Particulars |
SPICe+ Web Form – new form |
SPICe e-Form (INC-32) – current form
|
Form Name |
SPICe+ stands for Simplified Proforma for Incorporating Company electronically Plus: INC 32.
|
SPICe stands for Simplified Proforma for Incorporating Company electronically. |
Type/purpose of form |
It is an integrated web form offering multiple services for incorporating a company in India.
|
It is an integrated web form offering multiple services for incorporating a company in India.
|
Facilities provided |
|
|
Use of Facility/Forms |
All new name reservations for new companies as well as new incorporations shall be applied through SPICe+ only |
Incorporation of companies for names reserved through the existing RUN (Reserve Unique Name) service shall continue to be filed in the existing SPICe eform along with related linked forms as applicable
|
Effective date |
February 15, 2020 onwards |
Already in Place
|
Application for other registration |
The application for incorporation of a company (i.e. SPICE+ web form) shall be accompanied by e-form AGILE - PRO (INC-35) containing an application for registration of the following numbers, namely:-
|
The application for incorporation of a company (i.e. SPICe e-form) shall be accompanied by e-form AGILE (INC-35) containing an application for registration of the following numbers, namely:-
|
Implication
Although Incorporation of company in India has become much easier and less time consuming with these new forms, one should take a note that all compliances will start immediately after the registrations like profession tax, provident fund, ESIC, GST etc. and ideally such registrations should be obtained as and when needed.
The due date for filing of GST monthly return (GSTR-3B) is amended and it will be based on the annual turnover of the business and the state in which the business is situated.
The current due date of filing GSTR-3B is 20th of every month which will be changed as under:
Sr. No. |
Criteria |
Due Date of filing GSTR-3B Return
|
1 |
Taxpayer having annual turnover of INR 50 million or above in a previous financial year |
20th of every month |
2 (a) |
Taxpayer having annual turnover below of INR 50 million in a previous financial year and situated in Chhattisgarh, Madhya Pradesh, Gujarat, Daman and Diu, Dadra and Nagar Haveli, Maharashtra, Karnataka, Goa, Lakshadweep, Kerala, Tamil Nadu, Puducherry, Andaman and Nicobar Islands, Telangana and Andhra Pradesh.
|
22ndof every month |
2 (b) |
Taxpayer having annual turnover below of INR 50 million in a previous financial year and situated in Jammu and Kashmir, Ladakh, Himachal Pradesh, Punjab, Chandigarh, Uttarakhand, Haryana, Delhi, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand and Odisha.
|
24th of every month |
The Central Board of Direct Taxes (“CBDT”) has introduced the new Form 10-IC for exercising option of reduced corporate tax rate of 22% by amending the Income Tax Rules vide a notification dated February 12, 2020. The new Form 10-IC will be effective from April 01, 2020. Such filing of Form 10-IC for reduced corporate tax rate of 22%.
The taxpayer can file Form No. 10-IC electronically either under digital signature or electronic verification code.
Implications
Filing of form 10-IC is necessary to claim the benefit of the reduced tax rate from 1 April 2020. This should help most companies in India in reducing their tax burdens. Certain companies that are claiming special exemptions like tax break for special economic zones may not file this form.
India: New format of Auditor's Report notified for the financial years commencing on or after April 01, 2019
Ministry of Corporate Affairs (“MCA”) has issued the Companies (Auditor's Report) Order, 2020 (“CARO”) dated February 25, 2020. It provides the applicability criteria for various types of organizations and details regarding the matters to be included in the Auditor’s Report of an organization. It is applicable for the financial years commencing on or after the April 01, 2019. The new CARO has many additional disclosures compared to the old format.
Implication
Effective from April 01, 2020, there will be additional disclosure requirements due to CARO 2020. This will increase the audit costs and efforts for smaller companies in India. The audit process may have to be started earlier to complete audits on time.
Universal Social Charge (USC) limits change from February 01, 2020.
Ireland's Department of Finance has changed the Universal Social Charge (USC) thresholds from February 01, 2020. As a result, the USC rates and bands are amended as follows:
Implications
The employers will need to adjust their payrolls for these changes.
Real-time reporting of invoices for the amount above NIS 5,000 (USD 1310) for all B2B transactions
In order to combat tax avoidance, Israel government is planning to introduce real time reporting for VAT invoices for all B2B transactions of which invoice amount exceeds NIS 5,000 (~USD 1030). The business owners will need to take prior approval from the tax authority at the time of transaction taking place. Failure to obtain such approval will result in non VAT deduction for tax purposes.
Digital Service Tax (DST) of 3% to be levied w.e.f January 01, 2020
On approval of Law December 27, 2019, no. 160 (the Budget Law), the Italian digital services tax (the “DST”), has come into force effective from January 01, 2020.
Pursuant to such Law, the Digital Service Tax (“DST”) will be due:
Implications
The Digital Service Tax (DST) dubbed as the “Google tax” in many countries will not apply in Italy too.
Non-resident e-services providers to comply with VAT registration and filing requirements.
Non-resident providers of electronic or digital services to Mexican consumers must register for VAT by July 01, 2020. Non-residents must appoint a local VAT representative as a correspondent with the Mexican authorities. Once VAT registered, providers will have to report VAT collected on monthly basis.
The new VAT liabilities apply to B2B as well as B2C supplies.
Implications
The non-resident digital service providers in Mexico will have to comply with the VAT registration formalities and also with the VAT reporting requirements on a monthly basis.
Unidad de Medida y Actualización (UMA) amounts updated from February 01, 2020
The values of the “unit of measure and update” (unidad de medida y actualización (“UMA”)) were published on January 10, 2020 in the official gazette.
The updates values of the UMA will be effective February 01, 2020:
Daily: MXN 86.88 (previously MXN 84.49)
Monthly: MXN 2,641.15 (previously MXN 2,568.50)
Annually: MXN 31,693.80 (previously MXN 30,822.00)
Implications
The UMA values have implications for tax and social security contributions. The employers will have to review their payroll and social security calculations.
Employers in European Economic Area (EEA) and Switzerland with Non-Dutch employees in the Netherlands to intimate Social Affairs and Employment Ministry about such employees w.e.f. March 01, 2020
As per the Posted Workers in the European Union (Working Conditions) Act, from March 01, 2020 all the employers (in European Economic Area (“EEA”) and Switzerland) having Non-Dutch Employees Working temporarily in the Netherlands must provide a notice in advance to the government through the “Dutch Ministry of Social Affairs and Employment online notification desk”. Such employees under the European Union (Working Conditions) Act have right to certain benefits such as minimum wage, minimum rest periods and holidays, safe working conditions and equal treatment.
The Employers that come to the Netherlands with their own staff, Multinationals sending employees from one of their companies to the Netherlands; and Agencies that send temporary employees to work in the Netherlands will also have to comply with the same.
The specified foreign employers having non-Dutch employees in Netherlands will have to ensure compliance with the notification. Failure to provide such an advance notice result into fine levied upon the foreign employer, foreign self-employed person and the relevant contracting party.
The Dutch UBO Register which was to be implemented by January 10, 2020 is delayed
The deadline of Dutch UBO Register implementation by January 10, 2020 is delayed without notification of a further deadline for its implementation as per the decision of the Dutch Upper House of the Parliament.
With effect from year of assessment 2020, Singapore government announce changes in tax treatment of benefits in kind, key changes are given below:
Accommodation benefits
Taxable value of housing benefits will be actual rent paid by the employer less rent paid by the employee. Earlier it was based on Annual Value plus 40%-50%, depending on furnished status of the property.
Car benefits
New formula for calculating car benefits is as follows
In the above formula, the key change is that now employer will have to maintain all track records of actual running and maintenance costs incurred by the employer.
Implications
Employer should make sure that the taxes are calculated as per these tax changes and reported accordingly.
Singapore Budget 2020 Highlights
The Deputy Prime Minister and Finance Minister Mr. Heng Swee Keat presented the budget for the Financial Year 2020 on February 18, 2020. The key highlights of budget are as follows:
For Individuals
No changes in tax rates
For Employers/Companies
Goods and Service Tax (GST)
GST will continue to be charged at 7% as against the earlier announcement of GST rate increase to 9% will not be implemented in 2021. The government plans to increase the GST rate to 9% by 2025.
South Korea amends labor laws w.e.f. January 2020; more flexible family-care leave
South Korea amends Equal Employment Opportunity and Work-Family Balance Assistance Act ("EEA") to make family-care leave more flexible. An employer can now allow the employee to take 10 days of family care leave annually on a single-day basis instead of earlier provision of taking continuous 30 days’ family care leave out of the 90 days of family care leave available.
Further, when family care leave can now be used to take care of grandparents or grandchildren or to take care of a child for reasons such as attending kids school events. Earlier the family care leave could be used only for taking care of
The amendment to the EEA also makes clear that an employer can only deny an employee's request to go on family-care leave, or request a change in the leave period on a limited basis.
Implications
Employers will have to change their internal policies and employment handbooks to comply with these changes.
Effective from January 01, 2020, minimum share capital required to incorporate private limited company in Sweden is reduced from SEK 50,000 to SEK 25,000. Existing private limited companies may reduce their share capital to SEK 25,000.
The Chancellor of the Exchequer presented the UK Budget 2020 to Parliament on March 11, 2020. As mentioned in the budget statement, employment growth remains strong; the earnings growth continues in the UK to be above the inflation rate while the employment rate has reached a record high in 3 months to December 2019. The Budget also has allocated a whopping amount of GBP 12 billion plan in support of public services, individuals and businesses, whose finances are affected negatively due to COVID-19.
As per Budget 2020, Key Rates unchanged- Corporation Tax Rate maintained at 19 percent from April 2020, employer and employee NIC rates unchanged, Income Tax, Capital Gains Tax, Dividend Tax, rates also remain unchanged, the VAT rates and thresholds remain the same as well. The highlights of budget 2020 are as follows:
For Individuals
For Employers
For Companies
VAT
Post Brexit, the UK will be introducing a point-based immigration system which will be effective from January 01, 2021 and will end the free movement with EU.
The point-based immigration system will treat EU and non-EU citizens equally. This system will provide points which are based on various characteristics like salary, educational qualification and skills, etc. All applicants will need to demonstrate various fields such as job offer from approved sponsor, skill level, English speaking level, etc.
Implications
Any EU companies that have posted its employees in UK will need to recheck the further steps that may be needed for their Visas and its continuation.
Effective April 2020, the United Kingdom will be granting 2 weeks of bereavement leave (to be called ‘Jack’s Law’) for working parents as their statutory right if they lose a child under the age of 18, or suffer a stillbirth from 24 weeks of pregnancy.
The eligibility criteria for UK employers who claims Employment allowance (EA) against their (secondary) Class 1 National Insurance contributions (NIC) is changing with effect from April 06, 2020. These employers can claim up to GBP 3,000 against their (secondary) Class 1 National Insurance contributions (NIC).
The extra criteria will include checks on de Minimis state aid* and on total NIC contribution amounts as under:
*Here, De Minimis state aid rules refers to those businesses which are engaged in economic activity (providing goods and services to a market), even if that activity does not result in a profit.
The Brexit will result in UK’s leaving of EU Single Market, Customs Union and VAT regime from December 31, 2020 i.e. at the end of 11 month transition period.
As a result, the United Kingdom will be introducing full import VAT and customs declarations for goods coming from European Union (EU) post December 31, 2020.