October 2023 Global Update

 

Global Updates – October 2023

 

Global updates – a quick glance

 

Belgium: Adopts new rules regarding employees becoming sick during their holidays, requires them to report sickness with a medical certificate if they wish to take leave.

 

Bulgaria: Amends VAT Act – (i) to introduce new reporting requirement related to uncollectible receivables effective July 12, 2023; and (ii) to provide for mandatory quarterly reporting of cash and receivables over BGN 50,000 effective August 1, 2023.

 

Brazil: 

• Law No. 14,611 on equal pay for equal work and gender equality effective July 4, 2023.
• Updated monthly individual income tax brackets effective from May 2023.

 

Chile: The Internal Revenue Service of Chile (“SII”) reduced the minimum amount required for issuing simplified VAT invoices effective from July 1, 2023.

 

China:

• China extends the annual one-off bonus policy for resident individuals and the exemption for fringe benefits for foreign employees up to December 31, 2027.
• China releases draft proposals to relax cross-border data transfer rules.  
• China extends VAT incentives for small taxpayers through December 31, 2027.

 

Colombia: Reduction of minimum working hours in tranches of employees effective July 15, 2023.

 

Cyprus: Social insurance fund contribution rates to increase from 8.3% to 8.9% with effect from January 1, 2024. 

 

Czech Republic:

• Significant amendments to the Czech Labor Code effective from October 1, 2023.
• The Czech Republic published the ‘Act on Protection of Whistleblowers’ in line with the EU Directive, effective August 1, 2023.

 

France: 

• The French government postpones the implementation of electronic invoicing system which was set to take effect from July 1, 2024. 

• Expands benefits under parental leave and childcare provisions effective from July 21, 2023.
• Employers to pay 30% social security contribution on mutually agreed termination indemnity effective from September 1, 2023.

 

Germany:

• German Whistle-Blower Protection Act is now in force with effect from July 2, 2023.
• Reduced parental allowance income limits with effect from January 1, 2024.

 

Gibraltar:

• Gibraltar presented the budget for the year 2023-24, and proposed changes in personal tax rate.
• The New Fair-Trading Act takes effect from October 1, 2023, and the procedure for obtaining a new business license is simplified.

 

India:

• India enacted the Digital Personal Data Protection Act 2023; the effective date will be announced subsequently.
• New time limit of 30 days for reporting invoices for taxpayers with an Aggregate Annual Turnover (“AATO”) of INR 1 billion or more, effective from November 01, 2023.
• The Ministry of Corporate Affairs grants an extension for conducting annual general meeting (“AGM”) and extra-ordinary general meeting (“EGM”) through Video Conference (“VC”) or Other Audio-Visual Means (“OAVM”) till December 31, 2024.

 

Ireland: Ireland published the Budget for the year 2024; introduced changes to personal income tax slabs; implemented global minimum tax; changes to certain social security contributions; and changes to VAT thresholds.

 

Israel: Israeli Parliament approves 'New Law' to encourage investments in the technology industry effective July 31, 2023, providing tax incentives.

 

Japan:

• Japan implements a new invoicing system for Consumption Tax (“JCT”) effective from October 1, 2023. 
• Mandatory e-archiving of electronic trading documents, including invoices, to apply from January 1, 2024.

 

Malaysia: Malaysia makes electronic tax filing mandatory effective from January 1, 2024.

 

Netherlands: 

• Netherlands lowers pension age from 21 year to 18 years effective from July 1, 2023.
• Introduces conditional dividend withholding tax of 25.8% on dividend payments to low tax jurisdictions effective from January 1, 2024. 
• Passes bill regarding the determination of the location of supply for certain virtual services for VAT purposes.
• Amends VAT Small Business Scheme (“KOR”) to cover businesses in EU having sales less than EUR 100,000 effective from January 1, 2025.
• Tax Plan for 2024 presented before Parliament, changes proposed in personal income-tax slabs and rates, key corporate tax rates remain unchanged.

 

Singapore: Increase in standard GST rates in Singapore effective January 1, 2024.

 

Serbia: Extends paternity leave to fathers where mothers are self-employed effective from August 1, 2023.

 

Turkey:

• Turkey enacts tax reforms on July 14, 2023, raises corporate tax rate from 20% to 25%, and removes certain exemptions.
• Increases general VAT rate from 18% to 20% and reduced VAT rate from 8% to 10% effective from July 10, 2023. 

 

Thailand: 

• Council of Minister approves proposal to increase the employees’ medical allowance from baht 50,000 to baht 65,000, which is yet to be effective.
• VAT rate of 7% to continue till September 30, 2024.

 

United Kingdom: UK-USA Data Privacy Framework extension becomes effective from October 12, 2023, for smooth transfer of personal data between the USA and the UK.