Global Tax, Payroll and Trade in 2018:
Tax authorities are gearing up for 2018 with a series of updates, amendments and new inclusions to taxation laws and trade deals around the world. We’ve condensed some of the key learning points into a helpful guide to keep you abreast of the changes; read on below for a summary and sign up to our mailing list for the full facts and information that could affect your organization locally.
Vietnam’s Social Insurance Agency has announced new regulations on social, health and unemployment insurance contributions. The new rules stipulate certain circumstances in which SI-HI-UI must be paid, such as when taking on multiple labour contracts, or during early return from maternity leave. Additionally, the announcement underlines the types of remuneration that are should be included and excluded from monthly SI-HI-UI calculations, e.g. petrol and phone expenses (excluded). These regulations will come into play from 1st January 2018.
VAT Reform – The European Commission has unveiled plans for the biggest reform of EU VAT rules in 25 years. The plans highlight four fundamental principles, or ‘cornerstones’ and announce a new definitive single EU VAT to be introduced by 2022, along with four ‘quick fixes’ to come into force by 2019. The reboot would improve, simplify and modernise the system for governments and businesses alike.
The proposed VAT reform would also make the system more robust and simpler to use for companies. The Commission wants a VAT system that helps European companies to reap all the benefits of the Single Market and to compete in global markets, and places focus on minimizing the possibility of cross-border VAT fraud which is used to raise funds for criminal organisations and terrorism.
Fair Taxation – EU Member States have formally given the go-ahead to new rules aimed at better resolution of tax disputes. The decision taken by EU finance ministers in Luxembourg will ensure that businesses and citizens can quickly and efficiently resolve tax-treaty interpretation disputes, and double taxation issues will be resolved in a timely manner.
The Trump administration has released tax reform plans headlined as the ‘Unified Framework For Fixing Our Broken Tax Code’. Besides cutting headline tax rates, the framework would transfer the existing US ‘worldwide’ tax system to a territorial model in line with the majority of the world’s developed economies. At an international level, the framework recommends replacing the ‘existing, outdated worldwide tax system’ and also annuls or reduces various taxes for individuals, including the rate of taxation on business income for small businesses and sole proprietorships.
Malaysia and Thailand
The two countries have recently announced renewed co-operation on trade and investment along its borders, developing transportation logistics and industry. Thai government ministers are pushing forward with the Sadao-Padang Besar Special Economic Zone to generate local jobs in the South amid hopes that stability and economic development will be kickstarted by Malaysian investment in the area’s key industries.
Hungarian tax authorities have introduced a series of recent amendments to tax law and social security contributions which will come into force in January 2018, affecting businesses and individuals alike. For the specific detail on the changes, please sign up to our mailing list or get in touch for a no-obligation callback.