Bulgaria: Changes in the tax and social security legislation
The Bulgarian Parliament has introduced changes in tax and social security legislation, including reduction in the social security rates, tax refund opportunity for non-residents, and mandatory disclosure of monetary loans granted/received.
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India
Perquisite valuation restored to pre-FBT era with marginal differences
The Finance (No.2) Act 2009 abolished Fringe Benefit Tax (FBT) with effect from 1 April 2009. The related benefits have therefore come under the ambit of salary taxation. The rules for valuation of such benefits as provided by the employer directly or indirectly to the employee or any member of his household have now been notified. The valuation rules are applicable from 1 April 2009.
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Japan
Visa renewal from April 2010: Proof of enrollment in Japanese health insurance program to be requested
In 2009, the Japanese Ministry of Justice issued a guideline stating that from April 2010, as part of the visa renewal process, applicants will be asked to present their Health Insurance cards as proof of enrollment in the Japanese Health Insurance program. Read more   Print

Luxembourg
Reduction of inheritance taxes for non-residents
Draft law n°5954 submitted on 7 November 2008 and aimed at extending to non-residents some rules currently applicable to successions of residents only has been passed by the Chamber of deputies on 16 December 2009 with the purpose to ensure that the national legislation complies with the European principles of freedom of establishment and of free movement of capital and persons.
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The Netherlands
Labor costs facilities
The Lower House recently adopted the Tax Plan 2010. The labor costs facility is one of the issues to which major amendments have been made. Below we list the amendments relevant to the payroll taxes. Read more  Print

Thailand
Immigration changes for foreign nationals and personal income tax changes
The Department of Employment has announced new regulations concerning the work permit applications for foreign workers which are outlined in this NewsFlash.
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Global rewards updates
European Union: Additional changes proposed regarding relaxation of EUPD requirements
Further to our October and November Global Rewards Updates on the proposed amendments to the European Union Prospectus Directive (EUPD), the Council of the European Union now intends to extend the employee share plan exemption to companies listed on a "Multilateral Trading Facility", such as the Alternative Investment Market in the UK. Read more  Print

India: India tribunal rules Indian company cannot deduct stock option expense
Ranbaxy Laboratories Ltd ("Ranbaxy"), an Indian Company that is traded on an Indian stock exchange, had granted stock option awards to its employees in fiscal years 2001-2002 and 2002-2003, and sought to take a tax deduction on the difference between the fair market value of the underlying shares and the exercise price of the option, beginning in each of the respective grant years; the awards granted had a 5 year graded vesting schedule and, in accordance with accounting standards prescribed by the Securities and Exchange Board of India ("SEBI"), Ranbaxy expensed 1/5 of the spread at grant in its own financial statements each year over the vesting period. Read more  Print

India: The Central Board of Direct Taxes has released income tax (13th amendment) rules 2009 under the Finance Act 2009
The new regulations of The Finance Act 2009 (Act) are effective retroactively to April 1, 2009, and prescribe the valuation methodology applicable to share-settled equity awards. They abolished the Fringe Benefit Tax (FBT) which was previously payable on share-settled equity awards. Consequently, share-settled equity awards in India are now treated as "perquisites" and subject to income taxation under a system similar to that in place prior to the adoption of FBT. Read more  Print

Russia: Long term incentive plans - Federal Financial Markets Service clarifies the May 2009 changes to securities market legislation
Earlier this year, the Russian State Duma had adopted amendments to the Russian securities market legislation which included a provision that the financial instruments of a foreign issuer could only be "admitted for circulation" in Russia if the securities satisfied the two conditions outlined in this update.
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Slovakia: Stock options - Change in point of taxation effective January 1, 2010
On December 8, 2009, the Slovak government published an amendment ("new amendment") to the Slovak Income Taxes Act ("the Act") in the Collection of Laws that changes the taxable event with respect to employee stock option awards. Since December 15, 2005, employee stock option awards have been subject to Slovak income taxation on the date the employee vested in the award. The new amendment announces that for employee stock options granted from January 1, 2010, taxation will be deferred past vesting to the date the options are exercised.
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