The Chilean government has introduced a number of changes to personal and corporate taxation that will be introduced with effect from January 1, These include amendments to the taxation of stock options, which were outlined in a recent ruling published by the Chilean Internal Revenue Service IRS. The tax treatment of stock options is not currently clear although generally income tax is levied on exercise. Further guidance is expected from the IRS later in to clarify some of the details around these proposals.
Solium comment The introduction of a tax charge on grant will be unwelcome news for both employers and individuals. The proposals include the following:. Solium comment If these proposals are approved later in , companies will need to consider how to implement and communicate these changes for their expatriates in South Korea.
Employee social security has increased from On June 18, the Seconded Persons Act came into force, implementing the EU directive on the posting of workers in the framework of the provision of services. This new legislation imposes a number of new requirements on foreign companies that send expatriates to Poland and introduces penalties for non-compliance of between PLN 1, and PLN 30, The most significant change is the introduction of new processes enabling the Polish Labour Inspectorate to verify whether rules in relation to assigned individuals have been followed, including confirming that the parent company of the Polish entity actually undertakes genuine business activities in its headquarter location and that the assignment is temporary.
The parent company must meet these requirements no later than the date on which the assignment to Poland starts; for current assignments as at June 18, , the parent company has three months to meet these requirements, i.
In addition, employers must maintain and make available to the authorities upon request documentation in relation to the expatriate for the duration of the assignment and for the two years following the end of the assignment. Finally, similar provisions apply to Polish employers who send their employees abroad on expatriate assignments. Upon request by the Labour Inspectorate they will be required to provide information about their business activities in Poland and the terms of any expatriate assignments outside Poland.
Solium comment Companies will need to implement effective processes quickly to ensure that they will be able to comply with these requirements, not least given the imminent deadline in mid-September for current assignments. Our partner law firm, CMS, has recently updated us on the strict exchange controls issues in Ukraine.
According to this new Resolution, foreign currency transactions requiring NBU individual licenses will continue to be prohibited and the transfer of funds from the Ukraine is still impractical for employee share plans. Solium comment The prohibition on currency transfers continues to make the offering of share plans requiring any transfer of funds from Ukraine complex. Back to main library Like our library?
Check out our newsletter for hand-picked articles from across the web. Under the new regime the tax treatment of stock options will be as follows: No changes have been proposed to the taxation of other employee incentives. Abolition of the 0. The proposals include the following: An increase in the flat income tax rate that foreign employees may elect instead of progressive income tax rates The introduction of a new exit tax with effect from January 1, for South Korean tax residents who are leaving South Korea permanently in order to prevent offshore tax avoidance.
Poland New rules for employees on assignment On June 18, the Seconded Persons Act came into force, implementing the EU directive on the posting of workers in the framework of the provision of services. Ukraine Extension of prohibition in respect of foreign currency transactions requiring NBU licenses Our partner law firm, CMS, has recently updated us on the strict exchange controls issues in Ukraine.More...