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4 February 2015: Jordan – Tax and Social Security Updates

4 February, 2015 by John Tinsley Leave a Comment

Compandben’s International HR Services –

Compandben’s Jordan Employment Service Partners –

 

Jordan flagJORDAN’s new Income Tax Law (No 34) for the year 2014, which entered into force effectively January 1st 2015, was published in the official Gazette on 31st December 2014 edition No 5320. See below for an overview of the major changes.

 

• Payroll / Personal Income Tax Rates: 

Taxable Income *

Rate

First 10,000

7%

Second 10,000

14%

Above

20%

 

In addition, please note that native persons (individuals / employees) shall be entitled to personal exemptions as follows:

– Personal exemption of JOD 12,000. (Provided that he stays in Jordan for more than 183 days during the calendar year whether continuous or interrupted.)

– Family Exemption of JOD 12,000. (Provided that his family stays in Jordan for more than 183 days during the calendar year whether continuous or interrupted.)

– Additional Personal and family exemption of JOD 4,000 on Medical Expenses, University Education Expenses and Interests paid on Housing Loans, Housing rent, technical services, engineering services, legal services provided that supporting documents and invoices are available and to be granted on a case by case basis after reviewing the related supporting documents by the Income Tax Department.

– Exemption in the amount of JOD 3,500 in relation to the monthly Retirement Benefits instead of JOD 4,000 under the old Law.

• Withholding tax of non- Resident services providers has been increased to be 10% instead of 7%.

• Withholding tax 5% on real estate rent has been abolished.

o Effectively 1st Jan 2015 specifies certain service providers to be subject to 5% retention. Those service providers are: Doctors, Lawyers, Engineers, Certified Public Accountants, Experts, consultants, Insurance Agents, Custom Clearing Agents, Arbitrators, speculators, Agents and brokers for commission, financial brokers, freight forwarders. Any other persons will be determined according to the related regulations which will be issued for this purpose by the Minister of Finance.

• Withholding tax on in cash and in kind prizes and Jordanian Lottery in excess of JOD 1000 per each prize has been increased to be 15% instead of 10%.

• In-kind and in-cash dividends are not subject to withholding tax whether paid to a resident to non-resident party.

Social Security Updates:

According to Law No (1) of 2014, social security rates will be increased in 2015, 2016, and 2017. The increase will be 0.25% on employee share and 0.50% on employer share yearly. This will be fixed after 2017 when employee share will be 7.5% and employer share will be 14.25%.

Year

Employee

Employer

2015

7%

13.25%

2016

7.25%

13.75%

2017

7.5%

14.25%

 

Should you need further information or clarification, please do not hesitate to contact us:

Contact Compandben or visit Compandben Main Website – Jordan Payroll & PEO Services

John Tinsley

Filed Under: all, Employment Services (PEO), Human Resources, International Payroll Tagged With: Income tax, international employment, international hr, international human resources, international payroll, Jordan, rent, Social Security, Tax, Tax exemptions, Withholding tax

21 January 2015: Finland – Daily Allowance Rules – Internal and International ‘Per Diem’ Rates

21 January, 2015 by John Tinsley Leave a Comment

Compandben’s International HR Services –

Compandben’s Finland Employment Service Partners –

 

Finland flagHere is a brief description of the Daily Allowance system in operation in Finland. This is probably of limited interest but it contains a summary of the per diems in other countries accepted in Finland.

It may be of use to HR Directors and Finance Directors developing a travel policy and looking for guidance on comparative costs. For instance if based in say USA, where the per diem is €65, you can note that the per diem in Poland is only €56 and so you could make a rough and ready calculation that costs are 14% lower there than in USA.

 

Finland Per Diem Rules – Questions and Answers

Q In LATVIA the employer doesn’t seem to have any choice. He is legally required to pay the higher of the Per Diem or the actual reimbursement. Is that the same in FINLAND?

A The per diem is possible if the employee makes an invoice of each day with the time when the journey ha started and ended, the distance to the destination and the purpose of the journey. The same rules are about tax free kilometre allowance. For other kinds of expenses he should give all invoices and receipts to the employer. If he cannot give these documents the allowance is taxable salary.

Q Is the per diem taxable ?

A The daily allowance is tax free if the temporary journey takes more than 10 hours and more than 15 km from the home or permanent working place and more than 5 km from both. 2014=39.00/day, 2015 = 40.00/day.
The partial daily allowance is tax free if the temporary journey takes more than 6 hours and more than 15 km from the home or permanent working place and more than 5 km from both. 2014=18.00/day, 2015 = 18.00/day.
Depending on the duration of a business trip, the maximum per diem amounts are the following: (2015)

Duration of trip

Maximum per diem

More than 6 hours (partial amount)

€18.00

More than 10 hours (full amount)

€40.00

and, if travel time exceeds the last full day of travel:

– by at least 2 hours

€18.00

– by more than 6 hours

€40.00

For any day of travel, when the employee receives free meals, or meals included with the travel ticket, the maximum per diem is half the amount specified in paragraph 1 above. Free meals comprise two free meals in the case of full per diem, and one free meal in the case of partial per diem.

Q Is there a list of the applicable per diems for countries around Finland – Sweden, Lithuania, Denmark, Latvia, Estonia, Poland, Russia, Norway?

A The maximum (€) per diems currently payable for business travel around Finland in the above countries are:

Country or region

Maximum per diem €

Denmark

68.00

Estonia

51.00

Latvia

50.00

Lithuania

50.00

Norway

68.00

Poland

56.00

Russian Federation

53.00

– Moscow

66.00

– St Petersburg

61.00

Sweden

64.00

 

Click here for a full International list of maximum (€) per diems currently payable (ranging from 35.00 for Bolivia to 65.00 for USA and to 97.00 for Angola).

The per diem allowance concerns one day of travel i.e. 24 hours from the beginning of a business trip or 24 hours from the end of the preceding day of travel.

The maximum amount of per diem is defined on the basis of the country or region where the day of foreign travel ends. If the day of travel ends on a ship or airplane, the amount should be based on the country from where the ship or airplane last departed or, if leaving Finland, where it will first arrive.

Upon returning to Finland, the employee is entitled to half of the per diem for foreign travel paid for the last completed day of travel if the length of the business trip exceeds, by more than two hours, the last full day of travel that ended in foreign territory or in a ship or airplane departing from such territory.

If the length of a business trip exceeds, by more than ten hours, the last full day of travel, which ended in foreign territory or in a ship or airplane departing from such a territory, the employee is entitled to a per diem for foreign travel for the last full day of travel. The maximum amount payable for a day of travel or part thereof beginning after the employee returns to Finland must be determined as prescribed above.

For any business trip in foreign countries lasting a minimum of 10 hours, the employee is entitled to the confirmed amount for the relevant country. If the total duration of the trip is shorter than 10 hours the amount should be paid in accordance with the provisions and amounts applicable to domestic travel.

If the employee receives free meals or meals included in the price of a ticket or a hotel room the per diem must be reduced by 50 percent. For the purposes of calculation of per diems for foreign travel, two free meals constitute ‘free meals’.

If a business trip outside Finnish territory is made, the work being done under exceptional circumstances at the request of an employer located in Finland, and if the employee returns to Finnish territory for the night, and no per diem is being paid under the above, the maximum allowance for business travel, by derogation from subparagraph 1 above is €18.00.

If the employee has the right to have daily allowance (>10 hours / >15 km / >5 km) or partly daily allowance (>6 hours / >15 km / >5 km) expenses like food and coffee are included in the daily allowance. Expenses like parking, hotel or entertainment expenses are not included, the employer can also pay these to the employee.

But if the employee gets partly daily allowance and also has got one meal of food (for example in connection to entertainment or education) ½ of the partial daily allowance must be deducted, and

If the employee gets full daily allowance and also has got two meals of food (for example in connection to entertainment or education) ½ of the full daily allowance must be deducted.

For more information…

Contact Compandben or visit Compandben Main Website – Finland Payroll & PEO Services

John Tinsley

Filed Under: all, Employment Services (PEO), Human Resources, International Payroll Tagged With: Daily alllowances, employment services, Finland, international employment, international hr, international human resources, international payroll, Partner Company, Per diem, Tax, Travel allowance

7 January 2015: Italy – Incentive for Employing a Previously Unemployed Person

7 January, 2015 by John Tinsley Leave a Comment

Compandben’s International HR Services –

Compandben’s Italy Employment Service Partners –

 

Italy Flag

In Italy employer charges are reduced up to 100% for 2 years for hiring an unemployed person. Also for foreign firms registered as Employers. The following details are provided in conjunction with our Employment Service Partner Company in Italy, in response to a query.

 

The Italian government provides a financial incentive for firms that hire employees who are unemployed. The concession is available even to foreign firms that are just registered as Employers in Italy (even without a branch or other legal entity). It lowers the Employer social charges from the normal 30% of gross remuneration to 15% or even to ZERO for employees hired while previously unemployed. The 30% doesn’t include the end of service indemnity of approximately 8.5% (called TFR) which is still payable.

The concession lasts up to 2 years and applies only to EMPLOYER social charges – employees pay their social security contributions as normal.

 

For more information…
Contact Compandben or visit Compandben Main Website – Italy Payroll & PEO Services

John Tinsley

Filed Under: all, Employment Services (PEO), Human Resources, International Payroll Tagged With: Employer incentive, international employment, international hr, international human resources, international payroll, Italy, legal entity, Partner Company, PEO Services, Social charge, Social Security, Unemployment

24 December 2014: Happy Christmas from all at Compandben

8 December, 2014 by John Tinsley Leave a Comment

Compandben’s International HR Services –

John Tinsley –

Happy Christmas from all at Compandben

Filed Under: all, Human Resources Tagged With: Christmas, international employment, international human resources, international payroll, John Tinsley, PEO Services

8 October 2014: Compandben at HRM Expo Zukunft Personal 14-16 October

8 October, 2014 by John Tinsley Leave a Comment

Europe’s Largest Exhibition for HR Management –

Compandben’s International HR Services –

International

 

Compandben will be participating in the HRM Expo (Zukunft Personal) in October 2014.

We have a stand along with our partners for Germany and Mexico

Here is the text of the posters we will be putting up.

If any readers of this blog are going to the conference please let me know

john@compandben.com

 

COMPANDBEN SERVICES -160 COUNTRIES

• HR Advice-remuneration, benefits, terminations, employee handbooks.

• Employment Contracts customized for particular countries –usually free !

• Payroll Administration Solutions- for 1 or 1000 employees.

• PEO –Employer of Record Service -100 countries (including Germany)

COMPANDBEN SERVICES -160 COUNTRIES

Leave your business card – there is a daily raffle for a bottle of Champagne.

Compandben Dienste – 160 Länder

Dies sind die Dienstleistungen, die Compandben anbietet:

• Personalberatung, Zusatzleistungen, Kündigungen, Arbeitnehmerhandbuch.

• Arbeitsverträge kundengerecht angefertigt für einzelne Länder – meist frei!

• Verwaltung der Lohnkonten – für 1 bis 1000 Arbeitnehmer

• Professionelle Organisation des Personalwesens – Dokumente/ Archivierung / Erfassung für Arbeitgeber- in 100 Länder (Deutschland eingeschlossen)

Compandben Dienste – 160 Länder

Lassen sie eine Visitenkarte hier – täglich wird eine Flasche Champagner verlost.

Compandben Main Website – Mexico Payroll & PEO Services

Compandben Main Website – Germany Payroll & PEO Services

Compandben Main Website – International HR Services

John Tinsley

Filed Under: all, Employment Services (PEO), Human Resources, International Payroll Tagged With: Benefits, champange, Employee contract, Employer of Record Services, Expo, Germany, HR Management, HRM Expo, international employment, international hr, international human resources, international payroll, Mexico, PEO Services, remuneration, termination, Zukunft Personal

1 October 2014: £2000 Allowance for Employers of UK Employees

1 October, 2014 by John Tinsley Leave a Comment

Compandben’s International HR Services –

Compandben’s UK Employment Service Partners –

 

Quote from our UK Employment Services Provider Partner:
UK flag

Clients that have UK employees might want to check that their local payroll provider or PEO service have implemented the GBP2000 allowance for the 2014 tax year. It is a once off allowance. Here is a copy of a note issued by the firm we use for payrolls in UK.

From 6 April 2014 employers can claim the Employment Allowance and reduce their employer Class 1 National Insurance contributions (NICs).
As an eligible company you can reduce your employer Class 1 NICs by up to £2,000 each tax year. We will process the claim during our normal payroll process. When we make the claim, we shall reduce the employer Class 1 NICs payment by an amount of Employment Allowance equal to the employer Class 1 NICs due, but not more than £2,000 per year. For example, if your employer Class 1 NICs are say £1,200 each month, in April your Class 1 payments will be NIL and in May £800, as the allowance is capped at £2,000.

For more information…
Contact Compandben or visit Compandben Main Website – UK Payroll & PEO Services

John Tinsley

Filed Under: all, Employment Services (PEO), Human Resources, International Payroll Tagged With: Employment Allowance, international employment, international hr, international payroll, NIC, Partner Company, Tax, UK, United Kingdom

24 September 2014: Paternity Leave in Portugal

24 September, 2014 by John Tinsley Leave a Comment

Compandben’s International Employment Services –

Payroll Partners & PEO Services in Portugal –

Portugal flag

 

We have been implementing a paternity leave project for a client in Portugal.

One of our partners employs an individual in Portugal on behalf of a client.

 

1.The paternity leave has no impact in the vacation days.

2.The father is entitled by law to 10 working days of Paternity leave divided into
– 5 consecutive days, immediately after the birth of child;
– and 5 days consecutive or not, within 30 days from the birth of the child.

In addition to the 10 days vacation, the father can share the mother’s 30 calendar days of maternity leave.

The employee must inform the employer in writing of the duration of the leave, preferably delivering the document requesting the parenthood subsidy that was handed to Social Security –
This absence is not paid by the employer; the employee will receive through Social Security.

However in the case we dealt with the employees took 20 days of leave, and the employer advanced the funds to the employee: so effectively the employee received a normal salary. This was done in case the Portuguese social security paid the allowance to the employee late.

For more information…
Contact Compandben or visit Compandben Main Website – Portugal Payroll & PEO Services

John Tinsley

Filed Under: all, Employment Services (PEO), Human Resources, International Payroll Tagged With: international employment, international payroll, maternity leave, Partner Company, paternity leave, Portugal, Social Security

8 January 2014: Employment Practices in Mexico

8 January, 2014 by John Tinsley Leave a Comment

Compandben’s International Employment Services –

Mexico Payroll and Accounting Partners –

 

A note written by Compandben’s HR, Payroll and Accounting Partners in Mexico

Mexico Flag

“We know there is a lot of information here, and we know not all customers are looking to be experts in Mexican Labor matters as it might take a lot of time and resources and probably is not worthwhile for a small volume of staff compared to the staff contracted in HQ.
That is why we offer Human Resources Administration services, so our customers can have their operation in Mexico assisted by HR Experts who will work shoulder to shoulder with you to keep your company aligned to Mexican Laws and rules, and leave your staff focused on their real job.”

1. Employment Contracts

Trial or Probationary Period (not longer than 3 months).

Probationary period applies only when an individual has been offered a job with more than 180 days of work. During this period the employee would enjoy salary, social security and other mandatory benefits.
At the end of this period if the employee does not satisfy the requirements and knowledge necessary for the job, the labor relationship may be terminated without responsibility for the Employer.

Fixed length contract (not longer than 1 year).

Can there be a probationary Period within a fixed length contract? For instance if the contract is for 12 months can there still be a probationary period of 3 months?

If employee leaves: Customer doesn’t have any obligation to pay any additional amounts to the employee.
If the Employer terminates the employee before the end of the contract: he must pay 6 months of salary according to Mexican labor laws or the remaining time of the contract as severance: 6 months is the maximum.
When the contract end date is reached: Customer doesn’t have any obligation to pay any additional amounts to the employee.

Fixed length work contract (no longer than 2 years).

Can there be a probationary Period within a fixed length contract? For instance if the contract is for 12 months can there still be a probationary period of 3 months?

If the employee leaves: Customer doesn’t have an obligation to pay additional amounts to the employee.
If the Employer terminates the employee before the end of the contract: he must pay the employee 6 months of salary according to Mexican labor laws or the remaining time of the contract as severance compensation.
When the contract end date is reached: Customer doesn’t have any obligation to pay additional amounts to the employee.

Undefined length contract (No end date established).

If the employee leaves: Customer does not pay anything else.
If the employer terminates the contract: he must give to the employee 3 months of salary according to Mexican labor laws plus 20 days of salary per each year worked as end of service indemnity.

Notice Periods

In Mexico, the Employer is not otherwise obligated to give notice for dismissal; nor is the employee if the employee leaves voluntarily. But the end of service indemnities mentioned above must be paid.

2. Salary Payment

Blue collar staff in Mexico receive payment weekly.
White collar staff receive payment biweekly or every half-month. We make semi-monthly payments.

3. Hours of Work

The normal working week for white collar staff is 5 days and typical schedules would be 0800 to 1600 with half an hour for lunch. (This only comes to 40 hours or 37.5 hours not including lunch.)

Normal time and overtime

Working Week hours: 48 hours per week Morning.
45 hours per week Mixed (Morning-Night).
42 hours per week Night.

Hourly Paid Staff

Mexico approved last year a new labor law which established hourly basis, but unfortunately, Social Security charges are based monthly and there do not exist clear rules to pay on hourly basis yet.
We suggest paying on a monthly basis like a salary for the moment.

Overtime

In Mexico overtime applies for every employee according to Mexican Labor law. Nevertheless, white collar staff are not usually eligible for overtime.
The legally required overtime rates are as follows:
Overtime per week:
• Paid 2 times the normal rate from 01 up to 9 hours overtime in the same week.
• Paid 3 times from 10 hours overtime in the same week.

4. Vacation and Other Time Off

Vacation days:

According to Mexican law vacation days are:

• 6 days first year,
• 8 days second year,
• 10 days third year,
• 12 days fourth year,
• 14 days from fifth to ninth year
• plus 2 days more per each 5 years of service after fifth year.

Some of our customers decide to give more than law requires: It really depends on you.
Some companies provide the legally required benefits and other benefit such as free days; they provide free days to employees as vacations in order they can maximize their Vacation bonus.

Vacation bonus

Vacation bonus is paid each time employee takes vacation or accomplishes one year in the company according to company policy. Firms normally pay vacation bonus (Prima) when the employee accomplishes 1 year or leaves for vacation..
If the employee does not take vacation, then, additional days of salary should be paid according to the number of vacations allowed and not taken.
According to law, Vacation bonus is 25% of salary of the days of vacations.
Example: 6 days per year * .25 = 1.5 days of salary to be paid.
This vacation bonus can be higher according to customer preferences. Some clients go up to 60%.

Christmas Bonus

It is calculated as 15 days of monthly salary and paid before 15th December each year.
In Mexico, Salaries are based Monthly and before Taxes.

Public Holidays:

Mexico has Official days and non-official days.
Official days are mandatory to give as a day off and non-official are not mandatory but most companies give half day or all day as day off or as vacations.

Official days of Holidays:

January 1st, February first Monday, March 3rd Monday, May 1st, September 16th, November 3rd Monday, December 1st president change (each 6 years), December 25th.

Non-official days of Holidays:

April 5th and 6th, May 10th, November 2nd, December 12th, 24th and 31st.

Maternity Leave in Mexico:

According to Mexican Labor Law:
Chapter V. Article 170: Section II:
Résumé:
The mother will enjoy paid maternity leave of 6 weeks before and after the birth.
4 of the weeks before of the birth could be transferred to after birth period (Medical authorization by doctor of Social Security is requested and employer opinion is taken).
In case that child is born with a disability or any illness which requires medical attention, the maternity leave could be until eight weeks prior to the birth -again upon presentation of a medical certification.
In case of adoption, the woman will enjoy 6 weeks of rest with salary after the date of reception of the child.
In lactation period until a maximum of 6 months after the birth, the mother is entitled to have 2 extraordinary rests per day of 30 minutes each to feed their child or, with previous agreement with the employer, 1 hour of the normal working day would be reduced during the lactation period.

Payment during Maternity Leave

The salary of the employee during Maternity leave before and after birth is paid by Social Security.
*Social Security will pay daily until 25 times the Minimum daily salary ($ 64.76 MXN for Mexico City territory), if the employee’s salary is above this amount, the employer should establish on its policies how the company would proceed. (Maximum salary paid per month by the social security is $48,57.00 MXN).
Maternity is paid fully by Social Security (100%)

Paternity Leave in Mexico:

Chapter IV. Article 132: Section XXVI.
Subsection XXVVIIB is:
To give allowance of paternity of 5 labor days with salary for male workers for their child’s birth and, in the same way, in the case of adoption of a child.
The salary of the employee on the rest of paternity is full paid by the Employer.

5. Social Security and Benefits in Mexico

All Mexicans who work should be registered with the Mexican Social Security, which is the government institution in Mexico providing Medical attention to the worker and direct family (children, wife and parents).
Social Security benefits also include: Housing and Retirement benefits.
Medical services are provided by the Social Security.
Housing services are provided by INFONAVIT section.
Retirement benefits are provided by SAR section.

Social Security Costs

The Employer pays social security at a high level for low salaries (40%) but this drops to 12% of salary for say a shop assistant earning $6500MXN per month. It is cheaper to calculate social security over two months.
These amounts are based on Minimum Salary, Minimum Salary in Mexico rises according to the Government official publication.

Social Security Benefits

STD (Short Term Insurance) in Mexico: Provided by Mexican Social Security

Mexican Social Security covers many medical problems; the employees and their families can be treated through the Mexican government Medical facilities of Social Security.
In Mexico, in addition to Mexican Social Security cover, private Medical Insurance exists and is often use by multinational employers. We can assist you to find the best health plan for your organization.

LTD (Long Term Disability Insurance) in Mexico:

LTD (Long Term Disability) is covered by Social Security, Social security provides indemnities according to the illness or injury suffered by the employee whilst in work.
An accident or illness suffered by an employee increases the percentage of Labor Risk of the company, which then produces an increase of the fee of Social Security paid by the employer.

Laws which govern Payroll and Human Resources in Mexico:

Mexican Labor Law (Ley Federal del Trabajo)
Mexican Social Security Law (Ley del Seguro Social)
Mexican Income Tax (Ley del Impuesto Sobre la Renta)

Dependencies which review the development of labor matters in Mexico – Federal:

Mexican Work and Social Provision Department (Secretaria del trabajo y Previsión Social)
Mexican Social Security Institute (Instituto Mexicano del Seguro Social)
Tax Administration Service (Servicio de Administración Tributaria)

6. Background Checks

Companies are available for this but:
Costs for drug screening and testing should be quoted separately.
Our organization has discounts with two of the most known and recognized laboratories in Mexico which specialize in different testing.
The price varies from $ $ 864.50 to $ 2,532.40 MXN according to the specialization of the tests on drugs.

7. Termination of Employees

Nothing special necessary, but the Employer may need to pay severance pay if applicable – as indicated above in the section for Contracts.
There exist some cases when employers can release someone without paying severance, those cases are: cheating the employer, fighting on customer facilities, damage or threat to employees of the company or facilities (with evidence), using or working under effects of illegal substances or alcohol.

Contact Compandben or visit Compandben Main Website – International Payroll HR Services – Mexico

John Tinsley

Filed Under: all, Employment Services (PEO), Human Resources, International Payroll Tagged With: employment contract, employment services, insurance, international payroll, leave, Mexixo, overtime, Partner Company, probation, Social Security, Tax, termination, vacation, working hours

23 October 2013: Income Tax in Federation of Bosnia and Herzegovina

23 October, 2013 by John Tinsley Leave a Comment

Amendments to Tax Law in 2013 –

Compandben’s HR and Payroll Services in Bosnia & Herzegovina –

 

The amendments to the Law on Personal Income Tax that the parliaCompandben’s HR and Payroll Services in Bosnia & Herzegovinament of the Federation of Bosnia and Herzegovina (FBIH) adopted on 20 December 2012 came into force on 2 February 2013.

The tax rate remained unchanged at 10% and it applies to both residents and non- residents. The main changes affect the definition of residents, deductions and exempt income.

Resident individuals pay tax on their worldwide income, while non-residents are only taxed on income sourced on the territory of Bosnia and Herzegovina (BIH). An individual is considered to be a resident if his stay exceeds 183 days in a tax year and/or he has a residence, business, or centre of vital interest in the territory of BIH.

Effective from 2 February 2013, individuals, who permanently reside in another entity or Brcko and work for an employer established in FBIH, are for income tax purposes considered to be residents of FBIH.

The tax base in the FBIH is total gross taxable income paid by the employer less employee contributions and deductible allowances (the monthly basic personal allowance, less dependent family member allowance(s) and invalidity allowance, where applicable). In the Republic of Srpska (RS), the tax base is total gross taxable income paid by the employer less social security contributions and deductible allowances (monthly basic personal allowance, less dependent family member allowance(s) and invalidity allowance, where applicable).

Personal deductions in both the FBIH and RS are up to BAM 3,600.00 per calendar year. (about US$2430 per year)

Regarding FBIH, as of 2 February 2013, even though the persons who permanently reside in another entity or Brcko and work for an employer established in FBIH are considered as resident of FBIH for income tax purposes, the only deductions allowable to them are the basic personal allowances and dependent family member allowance(s). They are not allowed to deduct the expenses such as interest paid on housing loans, specific medical costs including medicaments, medical services and accessories for disabled persons, which are provided only for regular residents of FBIH.

In the RS, deductions include the dependent family member allowance, interest paid on housing loan and pension contributions paid for voluntary pension insurance up to BAM 1,200.00 per annum.

Along with changes effective as of 2 February 2013, in relation to FBIH, an exemption provided for the income from a life insurance or voluntary pension insurance paid by an insurance company established in the FBIH, for which the premiums were paid.

The most important items of exempt income in RS, FBIH and Brcko include: pensions, dividends, scholarships, compulsory social security contributions paid by employers, several types of social welfare and compensation payments, certain types of interest income, inheritances and gifts.

Dajana Topic

This article was written by Compandben’s partner for South East Europe and Eastern Mediterranean. The Group, based in Cyprus covers tax, human resources, payroll and accounting across 18 cities in the Region.

For specific information: Contact Maria Savva Regional Manager Southern Europe Compandben – Maria@compandben.com

See also Compandben Main Website – International Payroll HR Services – Cyprus

For more general information: Contact Compandben or visit Compandben Main Website – International Payroll HR Services.

John Tinsley

Filed Under: all, Human Resources, International Payroll Tagged With: Accountant, BIH, Bosnia and Herzegovina, Breko, Cyprus, FBIH, international employment, international hr, international human resources, international payroll, Non-resident, Partner Company, Resident, Srpska, Tax

28 August 2013: HR Success in Vietnam

28 August, 2013 by John Tinsley Leave a Comment

Compandben’s International Partners in Vietnam –

Ten Years of Success –

 

Our International partners in Vietnam recently celebrated 10 years of success.

Vietnam FlagThe firm provides:

  • Recruitment
  • Outsourced Employment services
  • Payroll Administration
  • Visa arrangement and processing in Vietnam.
Vietnam  Partners - 10 Years Success

Vietnam Partners – Celebrating 10 Years Success

If you wish to contact them, first Contact Us, by e-mail or telephone, stating what area of work is concerned.

Vietnam Partners - CEO in Centre of Group

Vietnam Partners – CEO in Centre of Group

Further information can also be found on Compandben Main Website – Payroll/ Employment – Vietnam

John Tinsley

Filed Under: all, Employment Services (PEO), Human Resources, International Payroll Tagged With: international employment, international hr, international payroll, Partner Company, Recruitment, Vietnam, Visa
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  • 21 January 2015: Finland – Daily Allowance Rules – Internal and International ‘Per Diem’ Rates
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  • January 2013

Blogroll

  • ‘Compensation Insider’ blog – run by compensation expert Sandrine Bardot. As well as compensation related postings the site provides tips on how to more efficiently use Excel and Linkedin. Recommended!Compensation Insider

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