Australia: Immigration news
In the 23 October 2009 issue of Global InSight we outlined the extensive changes to the Temporary Business Entry program, which were introduced on 14 September 2009 after the implementation of the Migration Legislation Amendment (Worker Protection) Act. Some of the main changes are highlighted in this NewsFlash. Read more   Print

India
Reserve Bank of India relaxes expatriate salary payment rules
Foreign / Indian nationals employed with a foreign company and on deputation to the office / branch / subsidiary/ joint venture in India can now receive 100% of their salary outside India from their overseas employer subject to the payment of taxes in India. Similarly, foreign nationals who are employed with Indian companies can now remit 100% of their salary to their bank accounts outside India subject to payment of taxes in India. Read more  Print

Korea
Ministry of Strategy and Finance announces proposed tax regulation changes
Every year in late summer or early autumn, the Ministry of Strategy and Finance ("MOSF") releases a list of proposed tax regulation changes that the MOSF would like to install in the next tax year. Tax regulation changes proposed by the MOSF are subject to approval by the General Assembly; however, the General Assembly routinely approves the majority of tax regulation changes proposed by the MOSF. General Assembly approval usually happens at the end of December.
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Luxembourg
Automatic indexation of salaries: An increase of 2.5% is expected for 2010
Further to the introduction of the law of 27 June 2006 which adapted the application of the index of salaries and wages, a temporary mechanism has been set up in order to limit the indexation of wages for the years 2006 to 2009.
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Netherlands
Social security treaty between India and the Netherlands
In October 2009, the governments of the Netherlands and India signed a social security treaty that covers many of the social security issues that can arise when employees work abroad. Similar treaties apply for other countries. Recently, the content became available. The treaty will become effective in the near future (probably in the autumn of 2010) and provides several rules with regard to the allocation of the applicable social security legislation (either India or the Netherlands). Read more  Print

Tax administration accommodates companies that employ expatriates
More and more the Tax Administration wishes to consult on certain tax issues with companies beforehand as opposed to monitoring such issues afterwards through tax audits. At the same time the Tax Administration wants to push back the number of personal income tax return forms to be dealt with. Read more   Print

Taiwan
Taiwan resident's overseas income will be subject to AMT in 2010
The Taiwan Executive Yuan announced on September 15, 2008 that the alternative minimum tax (AMT) will apply to an individual's overseas income effective from January 1, 2010. Though the inclusion of overseas income will increase the AMT burden, the respective foreign tax paid can be used as a credit for AMT payable, within certain limitations. Read more   Print

United Kingdom
Pre-Budget Report 2009
Following a steep fall in UK tax revenues, Alistair Darling outlined in his annual Pre-Budget Report how additional taxes will be levied on higher earners in order to narrow the gap between Government income and expenditure.
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Global Rewards Updates
Australia: Employee share plan bills passed
The Bills on the reform of employee share plans were passed by both houses of the Australian Federal Parliament, without amendment, on December 2, 2009. The new law applies to shares and rights to shares acquired on or after July 1, 2009. While the new legislation still requires Royal Assent, this approval is generally not viewed as an impediment to formal adoption and it is expected that the legislation will gain this approval. Royal assent is expected shortly. Read more  Print

United States: Announcement regarding rates to be used effective January 1, 2010
The New York State Department of Taxation and Finance has recently announced revised income tax withholding rates with respect to supplemental wages paid on or after January 1, 2010. Read more  Print