This Global Tax Guide explains the different tax systems for the countries in which Deel operates. If you have questions about the information contained in this guide, please reach out to your Deel point of contact.

About this guide

All information contained in this guide is for general information purposes only and is not tax advice. While we are committed to providing the most up-to-date information possible, changes in law, regulation, or other tax related practices may mean that some information is out of date.

We are adding new countries to the guide on a continuing basis. If a country you are looking for isn't listed, please check back soon.

Country ArmeniaAustraliaAustriaBelgiumBrazilBulgariaCanadaColombiaCosta RicaCroatiaCzech RepublicFinlandFranceGermanyGhanaHong KongIndiaIndonesiaIrelandItalyIsraelJapanKenyaMalaysiaNetherlandsNew ZealandNigeriaPhilippinesPolandPortugalRussiaRwandaSerbiaSingaporeSouth AfricaSouth KoreaSpainSwedenSwitzerlandTurkeyUgandaUruguayUnited Arab EmiratesUnited KingdomUnited StatesVietnam

Australia has a progressive income tax system. Total tax liability will depend on a number of factors including annual taxable income, allowances, benefits, bonuses, other variable compensation, contributions to mandatory or optional superannuation programs, and the repayment of any Higher Education Loan Program (HELP) debt.

Taxes are withheld by employers through the Pay-as-you-go (PAYG) system according to rates set by the Australian Tax Office (ATO). Tax withholdings include both Federal and State income tax. Employees are required to lodge annual tax returns. Overpayments and underpayments are reconciled when annual returns are lodged.

Tax Year

Tax Year: July 1 - June 30

Tax Returns Due: October 31

Tax Forms and Resources

Tax File Number (TFN) Declaration: This form must be filed with every payer (or employer) and is used to determine PAYG withholdings on income.
Tax Schedule: progressive tax rate schedule
Tax-Free Threshold: Income threshold for taxation
Withholding Rate Declaration: Form for adjusting the withholding rate

Tax Rates

Australian taxes are collected by the Australian Tax Office (ATO) according to a progressive tax schedule. All income, including allowances and bonuses, above the tax-free threshold is subject to income tax.

In some cases, employees may be able to adjust their withholding rate by filing a withholding rate declaration.

All Australians are subject to the same tax rates regardless of employment classification, marital status, or age.

Bonuses

Bonuses are treated as supplemental income in Australia and are included in gross earnings for the purposes of calculating Superannuation program contributions.

The payment of one-time or lump sum bonuses may result in a higher PAYG withholding rate. Overpayments of tax are reconciled when an employee lodges their annual tax return.

Allowances and Expenses

Reimbursement of approved business expenses are not subject to tax. Expenses are reimbursed on the payslip.

Company paid allowances are taxed as regular income and included in gross earnings for the purposes of Superannuation program contributions.

Superannuation Program

Australian superannuation programs help employees save for their retirement. Superfund contributions are calculated on gross income and are adjusted periodically. Current contributions and scheduled rate increases can be found on the Australian Tax Office website.

Deel remits superannuation contributions on the 7th day of each month following the pay cycle. It can take up to a week after this payment before these contributions are reflected in an employee’s superannuation account.

Brazil has a progressive income tax system, calculated according to rates set by the Receita Federal do Brasil. Total tax liability depends on total income, marital status, and residency.

Residents in Brazil pay taxes on all income, while non-residents are taxed only on Brazilian-sourced income. The source of income is determined by the place where the payer is located, irrespective of where the work is performed.

The Imposto de Renda Retido na Fonte (IRRF) is the Brazilian tax withholding system. Withholding rates are subject to change annually.

Employees are required to file a tax return each year. Overpayments and underpayments are reconciled when tax returns are filed. Overpayments result in a refund issued by the Brazilian Tax Authorities.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: April 30 following the end of the tax year

Tax Forms and Resources

Receita Federal do Brasil: Brazilian Tax Authority
Tax Rates
Tax Forms
Social Security rates: National Institute of Social Security (NISS) rates

Tax rates

Taxes are collected by the Receita Federal do Brasil according to a progressive tax schedule.

Taxable compensation includes everything that is connected either directly or indirectly with the work and/or assignment remuneration package, including salary, premiums, bonuses, allowances of any kind, tax reimbursements, club dues, and company-owned cars.

Tuition expenses, medical expenses, as well as social security and private pension contributions are tax deductible. Only income above the threshold, after allowances and deductions, is subject to tax.

Bonuses

Bonuses are taxed as regular income.

Allowances and Expenses

Company-paid allowances are considered taxable income.

Reimbursed business expenses are not taxable. Approved expenses are reimbursed on the payslip.

Social Security contributions

The National Institute of Social Security (INSS) rates vary from 7.65% to 11% of your gross salary, based on a government contribution table. INSS contributions are tax deductible.

13th month salary

13th salary payment is an additional month's salary paid out to employees at the end of the year. This additional payment is a legally mandated benefit and is not part of the employee’s base salary.

Employees who have worked for 12 months are entitled to receive the full payment, while those who have worked for part of the year will receive a payment proportional to the period worked.

At Deel Brazil, the 13th salary will be paid on November 20th (50%) and December 20th (50%). Clients will receive an extra invoice in November and December for 13th salary payment.

A pro-rated 13th month salary is also due upon termination.

Holidays and Holiday Pay Premium

According to Consolidation of Labor Laws (CLT) an employee is entitled to a vacation period only after twelve months of service to an employer. For every 12 months the employee has worked, they earn 30 calendar days of paid vacation and an additional vacation premium of 33.33% pay for their vacation days.

The Labor Reform permits this paid leave period to be split into up to three holiday periods. One of the periods must be no less than 14 days, and the other two periods no less than 5 days. Employees may take the entire 30 day period as a single holiday. The vacation period may not start 2 days before a holiday or weekend.

It is unlawful for an employer to deny an employee their holiday time and holiday bonus within 12 months. The failure to provide paid vacation may result in a requirement to pay an employee double vacation in addition to the 33.33% holiday bonus.

Pro-rated Holidays and Holiday Pay are also due upon termination.

Canada has a progressive income tax system. Total tax rates depend on a number of factors including annual taxable income, province of residence, mandatory and optional contributions, allowances, benefits, bonuses, and variable compensation.

Taxes are withheld by employers in accordance with Canada Revenue Agency withholding guidelines. Overpayments or underpayments are reconciled when employees file their annual tax return.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: April 30

Tax Forms and Resources

TD1 Federal and Provincial Personal Tax Credit Return: Establishes the federal and provincial tax-free allowance. This form is completed during the onboarding process. A new provincial form must be completed if the employee moves provinces.
CRA Tax Rates: Tax Rate Tables from CRA
Taxable Benefits and Allowances Guide: Guide for Employers from CRA
Bonuses and irregular payments: CRA resource on taxation of special payments

Tax Rates

Progressive income tax rates set by Canada Revenue Agency. Tax withholdings on payslips include both Federal and Provincial taxes, except in Quebec where provincial taxes are deducted separately.

Mandatory deductions like the Canada Pension Plan (CPP)/Quebec Pension Plan (QPP) and Employment Insurance (EI) will also affect how much tax is deducted from an employee’s pay.

All Canadians are subject to the same tax rates regardless of employment classification. Any overpayments or underpayments that may result from individual contributions or refundable deductions are reconciled when taxes are filed.

Bonuses

Bonuses are taxed as special payments and not as regular income. The result is a higher tax rate on bonuses.

Allowances and Expenses

Reimbursed business expenses are not usually subject to tax. Allowances may be subject to tax.

Further information about taxable allowances and benefits can be found in the CRA Employer’s Guide to Taxable Benefits and Allowances.

Statutory Programs and Pensions

Canada Pension Plan (CPP)/Quebec Pension Plan (QPP): Both employers and employees are required to make contributions to CPP or QPP. Rates are calculated based on total earnings and are subject to an annual limit.

Employment Insurance (EI): Both employers and employees are required to contribute to EI. Contribution rates are calculated based on total earnings and are subject to an annual limit.

Costa Rica has a progressive income tax system with progressive rates set by the Costa Rican Ministry of Finance. Tax rates depend on monthly income, including bonuses and allowances, as well as employment status.

All income earned in Costa Rica is subject to tax irrespective of nationality or residency. Employees in Costa Rica are not required to file tax returns.

Tax Year

Tax Year: January 1 through December 31

Tax Forms and Resources

Ministry of Finance: Costa Rica's Ministry of Finance and Tax Authority Website
Annual Wage Supplement Calculator: 13th Month Pay / Aguinaldo Calculator
D-103: Monthly Income Tax Declaration Filed by Deel
D-152: Annual Tax Withholding Declaration Filed by Deel

Tax Rates

Taxes in Costa Rica are collected by the Ministry of Finance, according to progressive rates. A basic tax-free threshold is available to all taxpayers with rates above the threshold ranging from 10% - 25%. Self-employed individuals benefit from a higher tax-free and lower effective tax rates.

Taxable income includes the wage, any company-paid allowances and bonuses. Taxable income does not include the Annual Wage Supplement (13th Month Pay).

Taxes are withheld by Deel and remitted to the tax authority on the 15th day of the month following payroll.

Bonuses

Bonuses are taxed as regular income.

Allowances and Expenses

Company-paid allowances are taxed as regular income.

Reimbursement of approved business expenses are not subject to tax. Expenses are reimbursed on the employee’s payslip.

13th Month Pay

13th month pay, or the Aguinaldo, is a mandatory bonus payment of an average extra month’s salary, that must be paid between December 1 and 20. An employee qualifies for the Aguinaldo if they have been employed for at least a month.

The Aguinaldo payment is based upon the employee’s average salary from December of the previous year to November of the current year. Aguinaldo payments may be prorated for those employed less than one year. The 13th month pay is not subject to income or social security tax. You will be invoiced for the 13th Month Pay in December on top of the regular salary.

CCSS - Costa Rican Social Security Fund

CCSS is a social security system that is mandatory for all Costa Rican nationals and legal residents. Employee contributions of 10.5% of the gross earnings are deducted from the payslip. Employer contributions are 26.5% of the employee’s gross earnings.

Individual income tax in Czechia is calculated according to progessive rates set by the Financial Administration of the Czech Republic. Various factors can affect an individual’s tax liability, including personal circumstances such as gross income, marital status, and number of dependents.

All residents of the Czech Republic are taxed on their worldwide income. Non-residents are only taxed on income from sources within the Czech Republic.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: Last business day of March of the following year

Tax Forms and Resources

General income tax information: How to submit a return, deadlines
Tax rates
Tax return forms

Tax rates

Taxes are collected by the Financial Administration of the Czech Republic, according to a progressive tax rate on the basis of gross monthly income.

Gross monthly income up to CZK 155,644 is taxed at a rate of 15%. Any monthly income in excess of this amount is taxed at 23%.

All residents of the Czech Republic must pay income tax, including income made from sources outside of the country. Tax relief and tax benefits are available and depend on personal circumstances such as marital status, disability status, and number of dependents.

Bonuses

Bonuses are considered taxable income and are taxed at the regular rate.

Allowances and Expenses

Allowances are taxed as income.

Reimbursement of approved business expenses are not taxable. Expenses are reimbursed on the employee’s payslip.

Social Security and Health Insurance Contributions

Employers and employees contribute to the Czech Republic’s social security and health insurance systems. The contribution rates for the employer are 24.8% of the gross salary for social security and 9% of the gross salary for health insurance. The contribution rates for the employee are 6.5% for social security and 4.5% for health insurance. Contributions are withheld from pay and are remitted by the employer.

France has a progressive income tax system, calculated according to rates set by the Direction Generales de Finances Publiques. There are multiple factors that affect an individual’s tax liability, including total income, household status, and number of children. Taxpayers may be entitled to tax credits or general deductions for child support, alimony, expenses for sustainable development, and charitable contributions.

All individuals with a tax residency in France are subject to tax. Non-residents are only subject to tax on income sourced in France.

Taxes in France are withheld and remitted through the pay-as-you-earn (PAYE) system. Individual taxpayers are still required to file a tax return. The return is pre-filled with primary earnings including wages and salaries, pensions, and investment income. Individuals must check the amounts, amend them if needed, and include any additional income before filing.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: May-June

Tax Forms and Resources

Tax Rates: French | Tax Rates: English
Tax Forms
Withholding Tax System: Information about PAYE
Declaration sociale nominative | French: Form completed by Deel that determines withholding rates
2042: Tax Return Form

Tax rates

Taxes are collected by the Direction Generales de Finances Publiques according to a progressive tax rates.

Taxes are calculated based on the household, and total tax liability is affected by marital status and the number of dependent children. Tax rates start at 0% and rates rise with each income tranche.

Taxable income includes salary, non-deductible social security contributions, employer contribution to mutual insurance, and any taxable allowances.

Taxes withheld by Deel are remitted monthly.

Bonuses

Bonuses are taxed as additional income at a special rate.

Allowances and Expenses

Most company-paid allowances are included in taxable income. The teletravail allowance is tax exempt up to €50 per month.

Approved business expenses are not taxable. Expenses are reimbursed on the employee’s payslip. For compliance purposes, only business expenses supported by a receipt can be approved.

Social Security contributions

Employers are required to contribute to a number of French social security programs. Contributions rates are scaled to income, and some contributions are capped.

Employees are required to make contributions to statutory pension programs, as well as the Generalized Social Contribution (CSG) and the Social Dept Repayment Contribution (CRDS). Only a portion of the CSG contribution is tax deductible, the rest as well as the CRDS are not tax deductible.

Reserve Financière

Employees in France are governed by the collective bargaining agreement “portage salariale”. This agreement includes a reserve financière by which 5-10% of an employee’s gross earnings are deducted each month to create a reserve. At the end of the employee’s contract, this reserve is returned to the employee.

Germany has a progressive income tax system calculated according to rates set by the Federal Ministry of Finance. Taxation is determined according to tax class, which takes into account a taxpayers marital status, number of dependent children, and sources of income.

All resident individuals are taxed on their worldwide income. All non-residents are taxed on German-sourced income only.

Taxes are withheld at the source for wages and salaries. For other forms of income, individuals complete a tax return form.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: July 31

Tax Forms and Resources

German Tax Rates and Information: German Government Website for Tax Rates and other Tax Information | In German
Tax Forms: All tax forms
Bundeszentralamt für Steuern (BZSt): BZSt official website

Tax rates

Income is taxed according to a progressive tax schedule. All taxpayers enjoy a basic personal tax-free amount.

Taxes are withheld by Deel and remitted to the Federal Ministry of Finance on the 10th of the subsequent month.

Tax classes are used to determine tax and withholding rates. There are six tax classes:

is for employees whose marital status is single, widowed, or divorced
for single-parent employees
married employee and only if the other spouse has chosen tax class 5
a married employee with the same income
if both spouses are employed and one of them has chosen tax class 3
applies to employees if they receive wages from more than one employer (The highest amount of tax)

Employees may change their tax class only by applying in person at the local tax office.

Germany applies a progressive tax rate of between 14% and 45% based on gross taxable earnings above the tax-free amount. Income tax is calculated based on total earnings when you file your tax return. Overpayments will result in a refund from the tax office.

Church Tax

Employees who belong to tax-entitled churches and congregations pay a Church Tax. The tax applies to gross taxable income, and the rate depends on the employee’s place of residence. This tax is collected by the German tax authorities and remitted to the employee’s Church. The Church tax is fully deductible.

Solidarity Tax

The Solidarity Tax is a flat surcharge tax on high income earners. It was introduced to fund economic development in the former East Germany.

Bonuses

Bonuses are included in the annual income and the tax rate is calculated from that gross amount. The result may be a higher withholding rate on bonuses than on salary.

Allowances and Expenses

Company-paid allowances are considered income for tax and social security contributions.

Approved business expenses are reimbursed on the platform and are generally non-taxable. Business expenses must be for legitimate business purposes or they are treated by the authorities as a taxable allowance.

13th month payment

The 13th month salary is an optional additional month's salary paid out to employees by their company as a bonus. It always corresponds to a full month’s salary and is regarded as income for tax and social security purposes.

If you wish to offer this bonus to your employees you may do so on the platform or contact support for assistance. The amount will be listed on your invoice as an extra item. The cost associated with this bonus is inclusive of required social security contributions.

Mandatory Insurance Programs

German Insurance consists of four major pillars: Health, Pension, Long-Term Care, and Unemployment Insurance.

Health Insurance covers the cost of illness. The premium is 14,6% of the gross annual salary and is shared equally between the employer (7,3%) and the employee (7,3%). An additional contribution between 0,40% and 1,70% is shared by the employer and the employee. This amount is determined annually by the healthcare provider.

PensionInsurance costs 18,6% of the gross annual salary and is shared equally between the employer (9,3%) and the employee (9,3%).

Long Term Care Insurance costs 3,5% of the gross annual salary shared equally between the employee (1,525%) and the employer (1,525%). Employees who are over the age of 23 and without dependent children pay an additional 0,25%. Employees resident in the state of Sachsen pay an additional 2,025%.

Unemployment Insurance is a limited income replacement program in the event of job loss. Both the employee and the employer contribute 1,20% of the gross annual salary.

India uses a progressive income tax system with rates based on income, age, and annual tax-savings investment declarations.

There are two tax regimes with different tax rates and employees may choose between them. The old regime allows for deductions from income. The new regime does not allow for deductions.

Tax Deductions at Source (TDS) are withheld by Deel in accordance with rates set by the Income Tax Department.

Employees file their taxes annually by self-assessment. Overpayments and underpayments are reconciled on filling with refunds issued by the Income Tax Department.

Tax Year

Tax Year: April 1 - March 31

Tax Returns Due: July 31

Forms and Resources

Income Tax Department: Indian Tax Authority
Tax Slabs: Tax rates for both tax regimes
Tax Forms for Individuals: Index of all forms for individual taxpayers
Form 12BB: Determines withholding rates. Collected by Deel during onboarding and renewed annually.
Form 16: Annual income statement provided to the employee by Deel.

Tax Rates

Tax rates in India are based on tax slabs that vary according to income and age. There are two tax regimes. The old tax regime includes deductions. The new tax regime does not. Employees may choose between tax regimes each year.

All salaried employees are also required to pay a flat Professional Tax calculated as a percentage of their taxable income.

Tax Deductions at Source (TDS) are withheld by Deel in accordance with rates set by the Income Tax Department. TDS is based on annual declarations made by the employee in their Form 12BB: Investment Declaration Form. This form is collected during onboarding and is renewed annually.

Discretionary and Statutory Bonuses

Bonuses are taxed as regular income at the prevailing income tax rate. Employees who earn less than ₹21,000 per month are also entitled to a statutory bonus. This annual or monthly bonus is paid at a minimum rate of 8.33% to a maximum of 20% of salary. This bonus is not discretionary and is mandated by law. The cost of this bonus - when applicable - will be included in your monthly invoice.

Allowances and Expenses

Reimbursements for legitimate business expenses are not taxable in India.

Mandatory and discretionary allowances are taxable at the prevailing income tax rate.

Provident Funds

Employees are required to contribute to a mandatory Provident Fund. Contributions can be either a fixed rate of RS 1800 or 12% percentage of Basic salary. Employee PF contributions are automatically applied towards Income Tax Exemptions.

Ireland has a progressive tax system. Taxes are collected by the Office of the Revenue Commissioners (Revenue). Tax rates depend on your annual taxable income, rate bands, and your personal circumstances.

Pay-As-You-Earn (PAYE) taxes are withheld by employers according to rates set by the Office of the Revenue Commissioners. Most employees who earn only employment income are not required to file a tax return unless requested to do so. Taxpayers who need to declare additional income or claim expenses, deductions and reliefs are required to file a return.

Overpayment or underpayment of tax is reconciled on filing, with refunds issued by the Tax Authorities.

Tax Year

Tax Year: Jan 1 through Dec 31.

Tax Returns: Up to four years from the last day of the tax year.

Tax Forms and Resources

Office of the Revenue Commissioners: Ireland Tax Authority
Tax Tables: Tax rates, bands, and reliefs
Expenses and Allowances: tax treatment of employee expenses and allowances
PPS number: Unique identifier collected at onboarding
MyAccount: Portal for updating personal circumstances and other tax information
Welfare: Portal for applying for maternity, paternity, and illness benefits

Tax Rates

Taxes are collected by Revenue according to progressive rates. Taxable income up to a certain limit is taxed at the standard rate band of 20%. Any income above the standard rate band is taxed at the higher rate of 40%. The amount of the tax rate band is dependent on an employee’s personal circumstances.

Tax rates only change when personal circumstances change, for example getting married or having a child. Personal circumstances can be updated on MyAccount.

Taxes on gross pay are withheld in accordance with the Pay-As-You-Earn (PAYE) system. Tax withholdings include the Universal Social Charge (USC) and Pay Related Social Insurance (PRSI).

Deel withholds taxes, social charge and social insurance contributions and remits them to the relevant authorities each month following payroll.

Bonuses

Bonuses are taxed at the same rate as income tax.

Allowances and Expenses

Company-paid allowances are usually taxed as income. A remote work allowance of up to €3.20 per day may be offered to employees tax-free.

Reimbursement of approved expenses are not usually taxed. For some expenses categories tax may apply. More information can be found on the Revenue website.

Personal Retirement Savings Plan (PRSA)

A PRSA is a type of long-term pension savings plan. It is available from PRSA providers whose products have been approved by Revenue and the Pensions Authority. Employers are required to offer a PRSA Pension scheme or an Occupational Pension Scheme to their employees.

Deel provides the option for employees to open a Standard PRSA. Employees can make contributions to their PRSA on a regular basis or in a lump sum. Employers are not obligated to contribute into the PRSA, but are able to if they choose. Employees are able to opt-in to this plan during onboarding. Tax relief is available for the contributions paid into a PRSA.

Japan has a progressive income tax system with rates set by the National Tax Agency. Residents of Japan pay taxes on all income while non-residents pay taxes only on income sourced in Japan.

A withholding tax system ensures that most employees do not need to file a tax return. An end-of-year tax adjustment (the Nenmatsu-Chosei) is used to calculate the difference between total tax withheld and total tax liability. Overpayments of tax result in a refund.

In very rare cases, employees may be required to file an individual income tax return.

Tax rates in Japan are based on income, employment type, and residency.

Tax Year

Income Tax Year: January 1 - December 31

Inhabitant Tax Collection Year: June 1 - May 31 (tax based on previous year’s income)

Tax Forms and Resources

National Tax Agency: Japan's Tax Authority | English
Withholding Tax System: Withholding Tax System | English
Tax Rates: Tax Rates | Japanese
Tax Dependants Form: Employee and Dependent Information Form | Japanese
Application for Deduction for Insurance Premiums for Employment Income Earner: Japanese
Social Insurance: Government Social Insurance Scheme | Japanese

Income Tax

Income taxes in Japan are collected by the National Tax Agency according to progressive rates based on income. Taxable income includes all earned income and some company-paid allowances.

Japanese taxpayers are entitled to an earned income deduction. This exemption applies to both income tax and the inhabitants tax. The earned income deduction varies according to marital status and the number and age of any dependents.Deel collects and remits taxes on the 10th day of the month following payroll.

Most taxpayers are not required to file a return. An end-of-year adjustment is used to calculate the difference between taxes withheld by the employer and total tax liability.

Inhabitants Tax

All residents of Japan regardless of their nationality must pay an Inhabitant’s tax. This flat tax is based on the previous year’s taxable income. The Inhabitant Tax year begins on June 1.

Bonuses

Bonuses are taxable at a special rate.

Allowances and Expenses

Company-paid allowances are generally considered taxable income for both Income Tax and Inhabitants tax. An exception to this is a company-paid commuting allowance, etc. which is not taxed.

Approved business expenses are not considered taxable income if they are required for the employer’s business. Entertainment expenses may be taxable.

National Pension

The National Pension System is mandatory for all Japanese citizens between the ages of 20 and 59. Employee premiums are deducted from gross salary prior to calculating taxable income.

Malaysia has a progressive income tax system. Residents and non-residents are subject to tax on Malaysian-source income only. Total tax liability depends on a number of factors including gross employment income, bonuses, allowances, and commissions. Citizenship and residency status, employment classification, household status, and the number of children also impact the tax liability.

Income tax is calculated according to progressiverates set by the Malaysian tax authority, Lembaga Hasil Dalam Negeri (LHDN). All workers in Malaysia are required to file an Income Tax Return each year reporting the income they received.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: April 30

Tax Forms and Resources

Tax Rates: Tax rate schedule
Return Forms Submission Schedule: Schedule for submission of Return Forms
Tax Forms: All tax forms
Hasil Individual Income Tax page: Introduction to income tax
PCB (MTD) Calculator: PCB Monthly Tax Deduction Calculator
PCB 2 (II) Form: Letter confirming that the employer has made all of the tax withholdings for a given period
Tax Exempt Allowances: List of allowances exempt from tax
CP22: notification of new employee
EA Statement: Annual Remuneration statement prepared by the employer and given to the employee
Wages Liable to EPF: List of wages liable for EPF contribution

Tax rates

Malaysian taxes are collected by the Lembaga Hasil Dalam Negeri (LHDN) according to a progressive tax schedule. An individual whose total taxable income exceeds the tax-free threshold must register for an income tax file.

The scope of individual taxation depends on residency status. Resident individuals are taxed according to the tax rate and tax reliefs in accordance with section 45A to section 49 of the ITA 1967. Non-resident individuals are taxed at a flat rate of 30% and are not eligible to enjoy any tax reliefs.

Any source of income derived from outside Malaysia and received in Malaysia is tax exempt.

Bonuses

Bonuses are considered wages and taxed as additional income.

Allowances and Expenses

Reimbursement of approved business expenses are not subject to tax. Some allowances may be tax exempt, subject to certain limits.

Employee Provident Fund

The Malaysian Employees’ Provident Fund (EPF) is a compulsory pension scheme for all Malaysians. The EPF provides retirement savings and contributions for all Malaysian citizens and permanent residents who are working in Malaysia. It is not compulsory for non-Malaysian citizens and non-permanent residents to contribute to the EPF, but they may choose to do so. More information on the EPF program can be found on the Malaysian Government website.

There are certain wages that are liable for EPF contribution, as well as a contribution schedule set by the Malaysian government.

Annual Wage Supplement (13th Month Pay)

Annual Wage Supplement (AWS), also known as the 13th month bonus payment, is optional in Malaysia. This can be paid as an off-cycle payment, but generally it is paid alongside the monthly salary in December or January. If an employee leaves in the middle of a month, it is up to company policy whether they are paid the 13th month pro-rata. This payment will be taxed as a Bonus under the category of Additional Income.

New Zealand has a progressive income tax system. Total tax liability depends on annual taxable income including bonuses, allowances, and other variable compensation. Income tax is levied at progressive rates set by Parliament and collected by Inland Revenue.

Residents of New Zealand are taxed on worldwide income. Non-residents are taxed only on New Zealand source income.

Pay-As-You-Earn (PAYE) taxes are withheld by employers according to tax codes. Most employees who earn only employment income are not required to file a tax return.

Overpayments and underpayments are reconciled when tax returns are filed. Overpayments will result in a refund issued by Inland Revenue.

Tax Year

Tax Year: April 1 through March 31

Tax Returns July 7

Tax Forms and Resources

Inland Revenue - Personal Income Tax Rates: Progressive income tax rates.
Inland Revenue - Tax Codes: Codes used to determine PAYE withholding.
IR330 Tax Code Declaration Form: Mandatory form used to determine PAYE rates. This form is completed during onboarding or if an Employee has a change in circumstances.
KS2 KiwiSaver Deduction Form: Form to set-up or change KiwiSaver contribution rates.
KS10 KiwiSaver Opt-Out Form: Employee Opt-Out form. Must be submitted between 2 and 8 weeks of starting employment.
2023 PAYE Deduction Tables: PAYE deduction tables for income, bonuses, and contributions.
IR3 Individual Tax Return: Employees with additional income sources are required to file an individual tax return.

Tax Rates

Taxes are collected by Inland Revenue according to progressive rates set by Parliament. All earned employment income is subject to tax.

Taxes are withheld in accordance with the Pay-As-You-Earn (PAYE) system according to tax codes. Employees are required to complete the Tax Code Declaration Form (IR330) when they begin employment. They can also update this form if their circumstances change.

If Inland Revenue sees that employees are using the incorrect tax code they will notify Deel and the employee. This is to help the employee avoid tax bills at the end of the tax year.

Deel remits taxes through PAYE two working days after payroll.

Bonuses

Bonuses are taxed at a special rate. See PAYE withholding rates for details.

Allowances and Expenses

Allowances are taxed as income and PAYE withholdings are applied.

Approved business expenses are not subject to tax. Expenses are reimbursed on the employee payslip.

KiwiSaver

KiwiSaver is New Zealand’s retirement savings program. All citizens and permanent residents normally residing in New Zealand are eligible to participate. Employee contributions range from 3-10% of gross income. Employees may opt-out of the program, and may change their contribution rate by completing the KiwiSaver deduction form and contacting Deel.

Employer contributions are 3% of gross income. Employer contributions are taxed as income. Both KiwiSaver contributions, and the Employer Superannuation Contribution Tax (ESCT) are remitted directly to Inland Revenue.

The Philippines uses a progressive income tax system. Tax rates are managed by the Bureau of Internal Revenue.

Income taxes and all mandatory contributions, including the Social Security System, Home Development Mutual Fund, and Mandatory Provident Funds, are withheld by Deel.

Allowances and Other Benefits, including bonuses and 13th Month Salary are subject to annual limits.

Employees file their taxes annually by self-assessment. Overpayments and underpayments are reconciled on filing.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: January 31

Forms and Resources

Tax Rates: Government website with tax rates
Form 1902: Application for Registration for Individuals Earning Purely Compensation Income. This form must be filed 10 days from the date of employment.
BIR 2316: Certificate of Compensation Payment / Tax Withheld. This certificate is issued annually to employees on or before January 31. Certificates from previous employers may be collected during the onboarding process to determine the correct withholding rate.

Tax Rates

Tax rates are set by law and managed by the Bureau of Internal Revenue.

Rates are determined by income. All employees are subject to income tax. Deel withholds and remit taxes via a government portal on a monthly basis.

Bonuses and 13th Month Salary

Bonuses and 13th Month Salary are considered Other Benefits and subject to a combined annual limit of 90,000 PHP. This limit includes all incentive pay, commissions, bonuses, 13th Month Salary, and any De Minimis benefits.

The 13th Month Payment is invoiced by Deel in December.

Allowances and Expenses

Reimbursement for legitimate business expenses are not taxable.

Allowances are part of De Minimis benefits and not taxed up to a combined annual limit of 90,000 PHP, including any bonus or 13th Month Salary payment.

These De Minimis benefits are small routine benefits or one-time awards provided to employees in addition to their basic salary.

Common De Minimis benefits include:

Convertible unused vacation leave credits for private employees
Convertible value of vacation and sick leave credits paid to public employees
Medical cash allowances for dependents
Rice subsidy
Uniform and clothing allowance
Medical assistance including therapeutic benefits, annual medical or executive check-ups, maternity assistance or routine consultations
Laundry allowance
Employee achievement awards
Gifts during Christmas and major anniversaries

Social Insurance Contributions and Programs

Both employers and employees are required to contribute to mandatory social insurance and other programs. Employee contributions are deducted from their payslip.

Social Security (SSS): provides compensation and support in the event of death, disability, sickness, maternity and old age
Mandatory Provident Fund: retirement fund managed by SSS.
Housing Development Mutual Fund: mandatory decution to provide affordable housing and loans
Philippines Health: mandatory state health program

Individual income tax in Poland is calculated according to progressive rates set by the National Revenue Administration (KAS). There are various factors that affect an individual’s tax liability including gross income, residence, and number of children.

All resident individuals are taxed on their worldwide income. Non-residents who receive income from their own business activity (contractual employment) are taxed only on Polish-sourced income at a flat rate of 20%. Residents whose income results from employment agreements are subject to general taxation rules. Deductions are not permitted for non-residents.

Poland uses a pay-as-you-earn (PAYE) system and employers withhold and remit taxes every month. Overpayments and underpayment of tax is reconciled when employees file their annual return. Overpayments are refunded within 90 days once confirmed by the National Revenue Administration.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: April 30 or the next business day if on a weekend.

Tax Forms and Resources

Tax Rates
Polish Tax Authority: Polish Tax Authority website
e-PIT information: information about e-PIT forms
PIT-2: Tax relief application completed during onboarding.
PIT-11: Annual income report prepared by Deel for the employee.

Tax rates

Tax rates are calculated on income according to rates set by the Polish Government. There are two tax rates: a basic rate of 12% up to the taxation basis (income) of 120,000 PLN and an excess rate of 32% for all income above the rate threshold.

A tax-free amount of 30,000 PLN is available to all Polish Taxpayers. This amount takes the form of a tax reduction of 3,600 PLN (300 PLN per month)

A high-income Solidarity Tax of 4% applies to income in excess of 1 million PLN. Taxpayers must also file a separate tax declaration.

Taxes are withheld by Deel and remitted to the tax authority on a monthly basis.

Tax Exemptions

PIT-0 is the name given to the common tax exemptions and relief for employees under the age of 26, employees at retirement age, parents and legal guardians of at least 4 children and employees who have relocated to Poland.

As of 2023 PIT-2 will be updated and this new form will include tax exemptions for:

Relief applications
Joint taxation
Tax deductible costs
Exemptions
Changes to tax exempt status including under 26 exemption and tax deductible costs

Employees do not need to submit a new form provided there are no changes to their circumstances for tax relief or exemptions.

There is a limit of 300 PLN per month for tax relief. From 2023, employees may submit PIT-2 forms to more than one employer, provided the total relief does not exceed 300 PLN per month.

Bonuses

Bonuses are considered taxable income and are taxed at a regular rate.

Allowances and Expenses

Most company-paid allowances are considered income for tax and social security contribution purposes. Some company-paid allowances like the meal allowance are subject to tax only up to 300 PLN, after which both income tax and social security contributions apply.

Reimbursement and tax treatment of business expenses in Poland is complex. Approved business expenses are included on the employee’s payslip. Business expenses are tax exempt if they are properly documented and meet the requirements of Polish compliance regulations:

Expenses for travel, including tickets for plane, train, or bus should be made out to the employee.

Invoices for equipment, hotels, hospitality, and business meal expenses should be issued in the name of Deel Poland in order to be reimbursed tax free. Please be advised that we cannot reimburse employees for alcohol.

Invoices need to be made out to:

Deel Poland Sp. z o.o.

ul. Domaniewska 37/2.43

02-672 Warszawa

NIP 5252863737

Social Security Contributions

Both employers and employees are required to make contributions to a range of funds for the employee. Contributions are made by Deel directly to the Social Security Authorities (ZUS). Employee contributions are deducted from gross taxable income. Employer contributions on behalf of the employee are not taxable. Programs include:

Pension and Disability Insurance
Sickness Insurance (employee only)
Accident insurance (employer only)
Labor Fund (employer only)
Employee Guaranteed Benefit Fund (employer only)
Health Insurance (employee only)

The Pension and Disability Insurance program is subject to an annual contribution limit. This limit changes every year which may impact an employee's net-pay after the limit has been reached.

Employee Capital Plan (PPK)

All Polish employers are required to provide an Employee Capital Plan (PPK) to their employees. The PKK is a private retirement savings plan with both employer and employee contributions. Employees are auto-enrolled after 90 days, but can opt-out at any time. Employees who opt-out are automatically re-enrolled after 4 years unless they opt-out again.

The employee’s basic PPK contribution is 2% of the social security basis and the employer’s basic PPK contribution is 1.5% of the same basis. Employer contributions are considered taxable income for employees, but no social security contributions are applied.

Individual income tax in Portugal is calculated according to progressive rates set by the Portal das Finanças. There are various factors that affect an individual’s tax liability, such as total income, marital status, number of dependent, special tax regime, if the employee or dependents have a disability.

All resident individuals are taxed on their worldwide income. Non-residents are taxed only on their Portuguese-sourced income.

Portugal uses a pay-as-you-earn (PAYE) system and employers withhold and remit taxes. Taxpayers must submit an Income Statement to the Tax Authority Portal, with overpayments and underpayments reconciled on the filing of a tax return. Overpayments are refunded by the Tax Authority.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: June 30

Tax Forms and Resources

Tax Rates
Tax Authority Portal: How to submit an income statement
Portuguese Tax Authority: Portuguese Tax Authority website
Declaração de IRS 99: Information collected at onboarding used to determine withholding rates
Annual Income Statement: Provided by Deel to the Employee. Must be submitted to the Tax Authority by June 30

Tax rates

Taxes are collected by the Portal das Finanças according to a progressive tax schedule, ranging from 14.5 to 48%. These rates are set annually by the Portuguese government.

The scope of individual taxation depends on various factors including income, marital status, residency status, disability status, and number of dependents. Overpayments will result in refunds from the tax office.

All Portuguese citizens are entitled to the tax-free threshold each year. Only income above the threshold less any deductions is taxable.

Deel collects and remits taxes through the Pay-As-You-Earn (PAYE) system on the 10th of each month following payroll.

A special tax regime for eligible Non-Habitual Residents (NHR) offers a preferred tax rate for 10 years. This includes a 20% rate on self-employment income and in some cases tax-free foreign sourced income.

Bonuses

Bonuses are considered taxable income and are taxed at a regular rate.

Allowances and Expenses

Allowances in Portugal take the form of tax credits. The tax liability of these credits is determined by the tax rate.

Reimbursement of approved business expenses are not taxable.

Social Security Contributions

Social security contributions are shared by the employee and the employer. Contributions are calculated on gross remuneration. These contributions cover family, pension, and unemployment benefits.

Employers must also fund insurance premiums to cover occupational accidents. Premiums vary according to employment risk classification.

13th and 14th month payment

Portugal has mandatory annual wage supplement 13th and 14th payments. These additional payments are usually paid in summer and at Christmas, or can be prorated and added to monthly wages. These payments are taxable as income, and are included in social security contribution calculations.

You will be invoiced for these payments on a prorated monthly basis.

Singapore has a progressive income tax system, calculated according to rates set by the Inland Revenue Authority of Singapore (IRAS). Residents and non-residents are subject to tax on income earned in Singapore only, with the exception of foreign-sourced income received through partnerships in Singapore.

There is no income tax withholding at the source via payroll. The individuals are taxed based on the income earned in the preceding calendar year and are required to file their own Income Tax Return declaring the total income they receive throughout the tax year.

Total tax liability depends on a number of factors including gross income, bonuses, allowances, commissions, and employment status. Citizenship, gender, marital status, household status, and number of children also impact the tax liability.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: April 15 (paper filing) or April 18 (e-filing)

Tax Forms and Resources

Tax Rates

Taxable and Tax-Exempt Allowances

Taxes on Employment Income Types

Income Tax Return Form

Employment Income Status: Check whether the employer has transmitted the employment details to the IRAS

Pension: Taxable and non-taxable pension

Tax rates

Taxes are collected by the Inland Revenue Authority of Singapore (IRAS) according to a progressive tax schedule. Regardless of the annual income, the individual must file an income tax return if they receive any letter, form or SMS informing them to file an Income Tax Return. Filing for the Year of Assessment begins on March 1 and individuals must file their Income Tax Return by April 18.

There are exceptions for filing tax returns, for example if an individual receives a letter or SMS informing them that they have been selected for the No-Filing System.

The scope of individual taxation depends on residency status. All earned income less allowable expenses, donations, and personal reliefs is subject to income tax.

Non-residents are taxed at either a flat rate of 15%, or the progressive resident tax rate, whichever is higher. Directors’ fees and other income are taxed at the prevailing rate of 22%. Non-residents are not entitled to tax reliefs.

Bonuses

Bonuses received from employment are taxable as regular income.

Allowances and Expenses

Generally, all gains and profits derived by an employee in respect of their employment are taxable, unless specifically exempt from income tax or covered by an existing administrative concession. These gains and profits include all benefits, whether in cash or in kind.

Central Provident Fund

The Central Provident Fund (CPF) is a compulsory pension scheme for all Singaporeans citizens and permanent residents earning more than $50 (SGD) per month. Both employers and employees contribute to the CPF. Contributions are not permitted for non-residents and foreign employees holding work visas. More information on the CPF program can be found on the CPF website.

CPF contributions are calculated on certain certain wages based on a contribution schedule set by the Singaporean government.

Annual Wage Supplement (13th Month Pay)

Annual Wage Supplement (AWS), also known as the 13th month bonus payment, is optional in Singapore. Companies choosing to offer the AWS to employees through Deel can increase the annual salary package to be paid to employees over 12 months.

South Africa has a progressive income tax system. Total tax liability depends on annual taxable income including bonuses, allowances, and other variable compensation. Income tax is levied at progressive rates on the gross taxable income above the tax threshold. Tax rates and tax thresholds are set annually by parliament. The tax threshold differs by age bracket.

Pay-As-You-Earn (PAYE) taxes are withheld by employers according to rates set by the South African Revenue Service (SARS).

Most South Africans are required to submit a tax return. Those earning income below a certain tax threshold from only one employer, and who do not receive a car allowance, company car, travel allowance, or intend to claim any tax related deductions/rebates are not required to submit a tax return.

Overpayments and underpayments of tax are reconciled at tax year-end and when annual returns are submitted.

Tax Year

Tax Year: March 1 - last day of February

Tax Returns Filing Season: Submission late October (varies annually)

Tax Forms and Resources

South African Revenue Service (SARS): South African Tax Authority
Tax Rates for Individuals: Individual tax rates
Tax Thresholds: Annual tax threshold based on age
SARS Allowance Guide: External guide for employers in respect of allowances
IRP5/IT3(a): Employer-generated form that discloses total employment remuneration and taxes deducted or withheld.
ITR12: Individual Income Tax Return. Employees must complete this return if they have additional income to declare.

Tax Rates

Taxes are collected by the South African Revenue Service (SARS) according to progressive tax rates. All income above the tax threshold is subject to income tax.

Tax thresholds are set annually and vary with the age of the employee. Pay-As-You-Earn (PAYE) withholding rates are set annually by Parliament and cannot be changed by the employee. All South Africans regardless of employment classification or marital status are subject to the same tax rates.

Deel remits PAYE withholdings to SARS on the 7th day of the month following payroll.

Bonuses

Bonuses are taxed as income.

Allowances and Expenses

Allowances are taxed as income and PAYE withholdings are applied. Approved reimbursed business expenses are not subject to tax, in accordance with certain limits and rules set by SARS.

Retirement Annuity Funds (RAF)

Retirement Annuity contributions are tax deductible under the Income Tax Act. Contributions are deductible to a limit of 27.5% of taxable income, capped annually at R350,000. Contributions in excess of this limit are carried forward to future years.

Any company contributions to RAF are taxed as income but may be offset by the RAF tax deduction up to the annual limit.

Statutory Program Contributions

Unemployment Insurance Fund (UIF): 2% of the employee’s earnings. Contributions are split evenly between employees (1%) and employers (1%).

Skills Development Levy (SDL): Employers are required to pay 1% of total salaries to the Skills Development Levy. For the purposes of calculating contributions, salary includes wages, overtime pay, leave pay, bonuses, fees, commissions, and other lump sum payments.

Income tax in Spain is calculated according to progressive rates set by the Spanish Tax Administration Agency (Agencia Tributaria). There are various factors that affect an individual’s tax liability such as household status, disability status, province of residency, and number of children.

All resident individuals are taxed on their worldwide income. Non-residents are taxed only on Spanish sourced income at a rate that varies according to country of residence.

Income tax is withheld by employers through the Pay-As-You-Earn (PAYE) system.

Taxpayers must submit a tax report to the Spanish Tax Administration Agency. Overpayments and underpayments are reconciled on filing of the tax report. Overpayments are refunded by the Tax Administration Agency.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: June 30

Tax Forms and Resources

Tax Rates
Spanish Tax Authority
Modelo 145: Onboarding requirement, provided by Deel
Modelo 149: To be completed by the Employee seeking favorable tax treatment under Beckham’s Law

Tax rates

Taxes are collected by the AEAT (Agencia Estatal de Administracion Tributaria) according to a progressive tax schedule. These rates are set annually by the Spanish government.

All Spanish citizens are entitled to the tax-free threshold each year. Only income above the threshold, net deductions and allowances, is taxable.

The scope of individual taxation depends on various factors including income, marital status, province of residency, disability status, and number of dependents.

Residents are taxed on all worldwide income. Non-residents are taxed only on Spanish-sourced income at a general rate of 24%. For residents in other EU member states or European Economic Area (EEA) countries with which there is an effective exchange of information, the rate is 19%.

Taxes are withheld by Deel as part of the Pay-As-You-Earn system. These taxes are remitted by Deel on the 20th of each month following payroll.

Bonuses

Bonuses are considered taxable income and are taxed at a regular rate.

Allowances and Expenses

Allowances are taxable in Spain and are taxed as regular income.

Reimbursement of approved business expenses is not taxable. Expenses are reimbursed on the payslip.

The Gastos Teletrabajo

Employees who work from home more than 30% of the time in a three month period are considered remote workers and are eligible for a Work From Home allowance of €50 per month. This allowance is taxable.

Social Security Contributions

Under the general regime, social security contributions are paid on salaries and wages. Contribution rates depend on the type of contract and are levied as a percentage of the gross salary.

Employer contributions are up to 31% of the gross salary, capped monthly. Employee contributions are 6%.

13th and 14th month payment

There is a mandatory annual wages supplement for 13th and 14th month salaries. These are usually prorated and paid throughout the year, or they can be paid in two lump-sum payments in the summer and at Christmas.

These payments are considered income for taxation and social security purposes.

The Beckham Law

The Beckham Law tax is a special tax regime that applies to foreign nationals moving to Spain for work. Foreign nationals are taxed at a rate of 24% on the first EUR 600,000 of income. Any amount over EUR 600,000 is taxed at a rate of 47%.

To qualify for the Beckham Law tax regime employees must:

Must hold tax resident status in Spain. This is obtained by residing in Spain for at least 183 days during the calendar year
Must be moving to Spain to work for an employer based in Spain, or for a foreign employer that has transferred you to work in Spain.
Must not have been a Spanish tax resident at any time in the last 5 years
Submit their application within 6 months from the date of their recorded registration with Social Security in Spain

It’s the employee’s responsibility to apply for the Beckham Law tax regime. The steps are:

Obtain a Foreign Identity Number (NIE)
Complete and submit an 030 form to the Spanish Tax Agency
Complete and submit a 149 form
Await approval from the Spanish authorities
If approved, submit the approval to Deel

Deel cannot assist with the Beckham Law application.

The United Kingdom uses a progressive tax system based on income, country of residence, and tax free allowance. Taxes are withheld by employers in accordance with Her Majesty’s Revenue and Customs (HMRC) Tax Codes.

Taxes are withheld by employers through the Pay-as-you-earn (PAYE) system. Employees do not need to file taxes unless they are in receipt of self-employment income. Taxes are filed using a self-assessment tax return. Employees may also be required to complete a self-assessment if an emergency tax code was applied and they are seeking a refund.

Tax Year

Tax Year: April 6 - April 5

Tax Returns Due: October 31

Tax Forms and Resources

P45: Form that determines tax free allowance. Provided by a previous employer
P60: Form that shows tax paid on annual salary. Provided by Deel.
Starter-Checklist: For employees that do not have a P-45
Self-assessment tax return: Required for employees that have additional undeclared income or are making a claim for tax relief
Employment Income Manual: Tax status of various incomes and tax relief for business expenses

Tax Rates

Tax rates are set by law and are collected by Her Majesty’s Customs and Revenue for all countries within the United Kingdom. Income tax is withheld at the source.

Rates may vary depending on the country of residence and employees are obligated to inform HMRC if they move.

Tax rates may also be affected by marital status, the receipt of additional income or benefits, and other tax relief.

All residents are subject to the same tax regardless of their employment status.

Taxes withheld as part of the Pay-as-you-earn (PAYE) system are remitted by Deel on the 22nd of each month following payroll.

Bonuses

Bonuses are taxed as regular income at the prevailing income tax rate.

Allowances and Expenses

Reimbursements for legitimate business expenses are not taxable in the UK.

Allowances provided by an employer are taxable.

You can find more information about business expenses in the UK in the Employment Income Manual.

Federally, the United States uses a progressive income tax system based on gross taxable income, filing status, claimed dependents, and any additional deduction amounts.

Depending on the employee’s state of residency there may also be state and local taxes These may be either progressive or flat taxes.

Taxes are withheld by Deel in accordance with Internal Revenue Service (IRS) and State and local government requirements.

Employees are required to file federal and where applicable state taxes annually. Any overpayments are reconciled by IRS, state, and local government refunds after filing. Underpayments will result in a balance owed.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: April 15 for Federal Taxes

State Filing Dates Vary

Tax Forms and Resources

W-4 Employee’s Withholding Certificate used to determine withholding allowances This form is completed by employees during onboarding and can be changed at any time during the tax year
W-2 Wage and Tax Statement is used by employees to file their annual tax returns. This statement is issued by employers on or before January 31.

Tax Rates

Federal tax rates are set by law and managed by the Internal Revenue Service (IRS). State and local taxes are set by state and local governments. Federal and State taxes are required to be withheld by employers and remitted directly to the government agency accessing the tax.

Withholding rates are determined by income, filing status, claimed allowances, and deductions on the W-4. Employees may request that additional amounts be withheld.

Mandatory contributions for Medicare, Social Security and any applicable local taxes are also deducted from an employee’s pay.

All employees are subject to taxation regardless of employment classification.

Bonuses

Bonuses are taxed at the federal supplemental rate of 22%. Some states also have a flat supplemental rate or it will be taxed at the progressive tax rate.

Allowances and Expenses

Expenses are reimbursements for legitimate business expenses and are generally not taxable with proof of expense. In rare exceptions they may be subject to tax.

Allowances are a benefit provided by the company and are generally taxable at an employee’s normal tax rate.

Individual income tax in the Netherlands is calculated according to progressive rates set by the Dutch Tax and Customs Administration (Belastingdienst).

All resident individuals are taxed on their worldwide income. All non-residents must declare both Dutch and non-Dutch income, but this does not mean they will be taxed on both.

Taxes are withheld at the source. Individuals must file a tax return when they are notified by the Dutch tax authorities. However, they can also file tax returns if they didn’t receive a notification, for example if they think they have overpaid tax, or if they have undeclared income. In February each year, we provide the employee with the annual wage tax statement for the prior year.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: May 1

Tax Forms and Resources

Tax rates

Taxes are collected by the Dutch Tax and Customs Administration according to a progressive tax schedule.

Income in the Netherlands is taxed in two different ways:

A wage-tax calculated according to a progressive tax schedule is applied to salaries as well as the 8% vacation payment. The wage-tax is calculated according to tables provided by the Dutch tax authority. As a result of the wage-tax discount any withheld tax may differ from the rate of wage-tax.
A non-regular tax rate of up to 55% is applied to all income that is considered non-regular, such as bonuses and commission payments.

Taxpayers are required to file a return before May 1. Overpayments will result in refunds from the tax office.

All Dutch citizens are entitled to the tax-free threshold each year. Only income above the threshold, net deductions and special expenses, represents the taxable income.

Residents are taxed on all worldwide income. Non-residents must declare all income, but are not usually taxed on income sourced outside of the Netherlands if they meet certain criteria.

Bonuses

Bonuses are considered taxable income and are taxed at a non-regular tax rate.

Allowances and Expenses

All allowances are considered as taxable income. Such benefits include accommodation allowances, home-leave allowances, and the 8% vacation allowance. The regular wage tax is applied to allowances considered part of salary, such as the 8% vacation allowance. Additional allowances or irregular payments are taxed at a non-regular tax rate.

Expenses related to employment that have no private benefit to the employee are non-taxable. If the employee enjoys a partial private benefit, that part of the expense is considered taxable. For example, internet, telephone, and television packages would include both an employment expense and a private benefit. Only the internet portion is required for work and as a result only the internet portion of the expense is non-taxable.

There is no cap on reimbursement of expenses but clients should review taxability and other limitations on the Belastingdienst website.

Statutory Insurance Programs

Unemployment Insurance
Pension
Social Security

Contributions are set out by the Belastingdienst and the contributions are split between citizen insurances that are covered through the wage tax and employee insurances that are covered by the employer through additional employer costs.

30% Tax Ruling

The Netherlands provides a tax break for foreigners known as the 30% facility or the ‘Tax Ruling’. Qualifying foreign nationals who transfer or are recruited from abroad to the Netherlands pay no tax on 30% of their gross salary. The benefit is valid for 5 years. Employees must apply within 3 months of their start date.

In the Netherlands it is common for employers to pay the non-refundable application fee of EUR 800 for their employees.

You will have an opportunity to pre-approve payment of the application fee during the contract creation process. If you pre-approve, an EUR 800 charge will be added to your invoice as a one-time charge. You will only be invoiced for this application fee if you and when your employee applies.

If you choose not to pre-approve payment of the application fee during hiring, you can still choose to approve payment later. Should your employee apply for the ruling, Deel will contact you.

Individual income tax in Belgium is calculated according to progressive rates set by the General Administration of Taxation. There are various factors that affect an individual’s tax liability including gross income, household status, and number of children.

All resident individuals are taxed on their worldwide income. Non-residents are taxed only on Belgian-sourced income. Taxes are withheld by employers and remitted monthly to the Tax Authorities. Employers provide an annual income statement each year, and employees must file a tax return via the General Administration of Taxation website. A tax assessment notice will reconcile overpayments or underpayments. Overpayments will be refunded automatically by the tax authorities.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: June 30 (or July 15 for digital submissions)

Tax Forms and Resources

Tax rates

Taxes are collected by the General Administration of Taxation according to a progressive tax schedule, ranging from 25 to 50%. These rates are set annually by the Belgian government.

All taxpayers are entitled to a tax exempt sum. This amount depends on the personal circumstances of the taxpayer, including any dependent children and the source of income.

Deel withholds taxes on income and remits them to the Tax Authorities on the 20th of every month following payroll.

Bonuses

Bonuses are considered taxable income and are taxed at a regular rate.

Allowances and Expenses

Allowances are taxed as income at the employee’s regular tax rate.

Reimbursement of approved business expenses are not subject to tax. Reimbursements are included on the employee’s payslip.

13th and 14th Month Salary

Belgium has two mandatory annual wage supplements:

The May annual wage supplement, the 13th month salary, is a holiday allowance equal to 8% of the annualized average monthly salary from the previous calendar year.

The December annual wage supplement, a 14th month salary, is equal to the average one month salary of the current calendar year.

Both allowances are taxed as regular income. You will be invoiced for these payments in the months in which they are paid to the employee.

Eco Voucher

Employees are entitled to a one-time annual voucher of EUR 250 paid in June. This is a mandatory fixed benefit provided to the employee tax free.

Social Security Contributions

Employers and employees are required to contribute to the social security system. Employer contributions are equal to 27% of the gross salary. Employee contributions are equal to 13.07% of the gross salary and are withheld and remitted by Deel.

30% Tax Ruling

The Netherlands and Belgium provide a tax break for foreigners known as the 30% facility or the ‘Tax Ruling’. Qualifying foreign nationals who transfer or are recruited from abroad to the Netherlands or Belgium pay no tax on 30% of their gross salary. The benefit is valid for 5 years. Please note that clients must request to support the 30% ruling application before the employee’s start date,

Individual income tax in Indonesia is calculated according to progressive rates set by the Directorate General of Taxes. There are various factors that affect an individual’s tax liability including gross income, residency status, benefits and allowances, and more.

All resident individuals are taxed on their worldwide income. Non-residents are taxed only on Indonesian-sourced income at a flat rate of 20%, but concessions are available where double tax agreements (DTAs) are in force.

Indonesia uses a pay-as-you-earn (PAYE) system and employers withhold and remit taxes from salaries and other compensation payable to their employees every month. Tax liabilities for a particular period or year must typically be paid to the State Treasury through a designated tax-payment bank (bank persepsi) and then accounted for to the Directorate General of Taxes (DGT) office through the filing of an annual tax return. Individuals can submit annual tax returns through the e-filing system provided by the Indonesian tax office (ITO).

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: March 31

Please note that late filing of annual tax returns incurs an administrative penalty of IDR 100,000.

Tax Forms and Resources

Tax Rates
Indonesian Tax Authority
Form 1721-A1: Employers’ certificate of income tax on earnings
BPJS Ketenagakerjaan: Information about BPJS Ketenagakerjaan (Workforce)
BPJS Kesehatan: Information about BPJS Kesehatan (Health)

Tax rates

Tax rates are calculated on income according to progressive rates set by the Indonesian Government.

Taxpayers calculate their own taxes and file an annual tax return. Late filing of annual tax returns incurs an administrative penalty of IDR 100,000. All resident individuals are taxed on their worldwide income. Non-residents are taxed only on Indonesian-sourced income at a flat rate of 20%, but concessions are available where double tax agreements (DTAs) are in force. There is a tax-free threshold in Indonesia which all Indonesian residents can claim annually.

Taxes are withheld by Deel and remitted to the tax authority on a monthly basis.

Bonuses

Bonuses are considered taxable income and are taxed at a regular rate.

Allowances and Expenses

Business expenses are generally claimable as tax deductible expenses up to a maximum of 5% of the employee’s gross income.

Reimbursements do not appear on the employee’s payslip. Personal expenses are not tax deductible.

Badan Penyelenggara Jaminan Sosial - BPJS (Social Security)

Indonesia’s two social security programs (BPJS Ketenagakerjaan and BPJS Kesehatan) provide work accidents protection, death insurance, old age savings, healthcare, and pension. The calculation base for contributions is basic salary plus fixed allowance. The maximum calculation base is IDR 12 million/month starting 1 January 2020, and is updated annually based on BPJS regulation.

Employers are responsible for ascertaining that their employees are covered by workers' social security programs under two government social security agencies as follows:

Social Security Agency for Health Insurance (BPJS Kesehatan), covering health insurance.
Social Security Agency for Workers' Social Security (BPJS Ketenagakerjaan), covering working accidents, deaths and old age, and pensions.

Employees’ contributions are collected by the employer through payroll deductions. These must be paid to BPJS together with the contributions borne by the employers.

Pension contribution (1% of gross income, maximum IDR 90,776/month) and employee contribution to BPJS Ketenagakerjaan (2% of gross income) are tax deductible.

Tunjangan Hari Raya (THR)

Tunjangan Hari Raya (THR) is a mandatory yearly bonus given to employees at least one week before the start of the religious holiday observed by the employee. All local employees, whether permanent or contract-based, are eligible for THR and it must be paid in Indonesian Rupiah. The bonus is the equivalent of one month’s salary for employees who have worked at least 12 months or more. For employees who haven’t, it is prorated.

THR is considered irregular income. THR is subject to income tax if the employee’s total regular income plus irregular income exceeds the non-taxable income of Rp 54 million. The same progressive rate of employee income tax applies to regular and irregular income.

Businesses are not obligated to pay foreign workers the THR bonus.

Turkey has a progressive income tax system. Residents are subject to tax on worldwide income, while non-residents are taxed on Turkish-source earnings only. Total tax liability depends on a number of factors including gross income and residency status.

Income tax is calculated according to progressive rates set by theTurkish Revenue Administration, after certain deductions and allowances. Workers in Turkey do not have to file their own taxes, but must submit their tax information to the government if they change companies mid-year.

Tax Year

Tax Year: January 1 - December 31

Workers in Turkey do not need to file tax returns

Tax Forms and Resources

Tax rates

Taxes are collected by the Turkish Revenue Administration according to a progressive tax schedule. Taxable income includes all compensation in cash or in kind, as well as benefits holding monetary value provided to Turkish workers. There is no tax-free threshold in Turkey. All earned income is taxed from the first dollar.

The scope of individual taxation depends on residency status. All earned income less charitable donations, education expenses, and personal insurance premiums is subject to income tax. Contributions to social security may also be deducted. There are no personal allowances in Turkey.

Non-residents (individuals whose legal residence is not in Turkey and who do not reside in Turkey for more than six continuous months) are treated as limited taxpayers. Non-residents are taxed at a progressive rate on Turkish-source earnings only.

Bonuses

Bonuses and other incentive based compensation such as commissions are taxable as regular income.

Allowances and Expenses

Allowances including overseas adjustments, cost-of-living allowances, housing allowances, education payments, and home leave payments are considered employment income.

Approved business expenses are only taxable if the employer pays on behalf of the employee, in which case it is considered a benefit.

Social Security Institution (SSI)

Participation in the government run Social Security Institution (SSI) is compulsory for both employees and employers. Contributions are calculated as a percentage of earnings and are not taxable.

Individual income tax in Sweden is calculated according to progressive rates set by the Swedish Tax Agency. Total tax liability is determined by income, age, and the municipality of the employee. Household status does not affect tax rates. Spouses file their taxes separately.

All resident individuals are taxed on their worldwide income. Non-residents working in Sweden for a Swedish employer or a foreign employer with a permanent establishment (PE) in Sweden can choose to be taxed in the same way as residents, or at a special income tax for foreign residents (SINK).

Sweden uses a pay-as-you-earn (PAYE) system and employers are required to withhold and remit taxes every month. Once taxes are reported and paid the employer cannot retrieve that tax amount back, it belongs to the employee.

Tax is assessed on aggregate taxable income from all sources. Taxpayers are required to file an annual tax return. Spouses file their taxes separately. Individuals can file taxes through the e-filing system provided by the Swedish Tax Agency.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: May 2 (or the following Monday if May 2 falls on a weekend)

Tax Forms and Resources

Tax Rates
Swedish Tax Authority
Nordisk eTax: additional information on taxes
SINK: special income tax for foreign residents
Bonus taxation
Tax refunds

Tax rates

Taxes are collected by the Swedish Tax Agency according to progressive tax rates

Sweden’s progressive tax rates include a tax-free threshold. This threshold is higher for individuals over 65 years of age.

National, state, and local taxes are withheld as income tax by Deel and remitted to the tax authority on a monthly basis.

Withholding rates are set by the Swedish Tax Agency. Employees may request a higher withholding rate from employers, or may request a tax adjustment decision from the tax agency.

Bonuses

Bonuses are considered taxable income and are taxed at a special rate.

Allowances and Expenses

All employment compensation, including regular or recurring allowances, are taxed as regular income. Irregular payments may be taxed at a higher special rate

Reimbursement of approved business expenses are not taxable. Expenses are reimbursed on the employee payslip.

Social Security System

Full social employer contribution is calculated by 31.42% on all gross salary and benefits. The different percentages vary based on age of the employee. There is no cap on these contributions.

Vietnam has a progressive income tax system with rates set by the General Department of Taxation. Multiple additional factors may impact overall tax liability such as income, household status, and number of dependents.

Residents of Vietnam pay taxes on all income while non-residents pay taxes only on income sourced in Vietnam at a flat rate on personal income and at various rates on non-employment income.

A withholding tax system ensures that most employees do not need to file a tax return if they only have one source of income from their current company for the whole year. Individuals with taxable income are required to obtain a tax code.

Those who have taxable employment income must submit their tax registration file to their employer, who will then submit it to the tax office. Employees with additional taxable income are required to submit their tax registration file to the district tax office of the locality where they reside.

Tax Year

Income Tax Year: January 1 - December 31

Tax Returns Due: April 30

Tax Forms and Resources

National Tax Agency
Tax Rates (in Vietnamese)
Bonus Taxation (in Vietnamese)
Allowance taxation (in Vietnemese)

Tax rates

Income taxes in Vietnam are collected by the General Department of Taxation according to progressive rates based on income. Taxable income includes all cash remuneration and benefits-in-kind, but some items are excluded from tax.

Vietnamese residents pay tax on all income while non-residents pay taxes only on income sourced in Vietnam at a flat rate on personal income and at various rates on non-employment income.

Taxpayers must submit their income tax registration file to their employer, who will submit this to the tax office.

Deel collects and remits taxes on the 15th day of the month following payroll.

Bonuses

Bonuses are considered taxable income and are taxed at the progressive rate.

Allowances and Expenses

Allowances, including cash allowances or benefits-in-kind are considered taxable income. Certain allowances and other items, including payment for business trips, training, wedding benefits, and more are excluded from tax.

Approved reimbursement of business expenses are not taxed. Expenses are reimbursed on the payslip.

Social, Health, and Unemployment Insurance Contributions

Mandatory employee contributions to Social Insurance, Health Insurance, Unemployment Insurance, and overseas and health insurance schemes are tax deductible. Contributions to the local voluntary pension scheme are also tax deductible but subject to a cap. Employee contributions are deducted from the employee’s gross pay before tax.

Social security contribution rates are 8% from the employee and 23.5% from the employer, which is divided into: Social insurance (17%), health insurance (3%), accident insurance (0.5%), control union fee (2%), and unemployment insurance (1%). Employer contributions are not taxable as income to the employee.

Individual income tax in Switzerland is calculated according to both progressive tax rates set by the Federal Tax Administration (FTA) and any applicable Canton and Municipal income taxes.

Various factors impact an individual's tax liability including gross income, location, marital and household status, and number of children.

All Swiss citizens and C-permit holders are taxed on their worldwide income. Temporary residents or non-resident workers are taxed only on Swiss income sources in accordance with federal and cantonal tax laws.

There are no payslip tax withholdings for Swiss citizens and C-permit holders. These taxpayers must file annual personal tax statements. The process and deadline for these statements differs by Canton.

Non-Swiss citizens and other non-C-permit taxpayers will have all applicable taxes withheld at source. These taxes are withheld by Deel and remitted monthly.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: This differs depending on the canton.

Tax Forms and Resources

Tax rates

Progressive income tax is levied at three different levels: Federal, Cantonal, and Municipal.

All Swiss taxpayers are entitled to a tax-free threshold. The amount of this threshold depends on marital status and varies by Canton and municipality.

For Swiss citizens and C-permit holders, this tax-free threshold is applied when taxes are filed. For all other taxpayers, the amount is determined during payroll and withholdings are adjusted accordingly.

Bonuses

Bonuses are considered taxable income. Swiss citizens and C-permit holders will include any bonus payments in their personal tax statement and pay taxes at the applicable progressive rate.

For all other employees, taxes on bonuses will be withheld by Deel. The amount of the bonus is added to the annual income and the difference in annual tax liability is withheld. The result is that the withholding rate on bonuses may be higher than the usual withholding rate applied to the employee’s salary.

Allowances and Expenses

Allowances are usually considered taxable income and are taxed at the employee’s progressive tax rate. The mandatory work-from-home allowance is not taxed.

Reimbursement of approved business expenses are not taxed. Expenses are reimbursed on the payslip.

13th Month Salary

13th Month Salary in Switzerland is common but not mandatory. If you include this additional payment in your employee’s contract, it will be invoiced to you and paid to the employee in December.

13th Month Salary is taxed as regular income. Payments are prorated on hiring and termination.

Social Security Contributions

Social security contributions are mandatory for all employees in Switzerland. The contributions include old-age and survivors insurance, sickness insurance, accident insurance, and unemployment insurance. These amounts are withheld and remitted by Deel on a monthly basis.

Pension fund contributions are calculated based on two rates:

The savings rate is based on age and salary.
The risk rate is based on age, marital status, and the number of children.

Contributions are the same for all employees regardless of citizenship or Canton.

Individual income tax in Colombia is calculated according to progressive rates set by the Directorate of National Taxes and Customs. Tax liability is affected by a number of factors, including gross income, number of dependents, mortgage interests, private health insurance, and more.

All resident individuals are taxed on their worldwide income. Non-residents are taxed only on Colombian-sourced income at a flat rate of 35%. All residents are entitled to a tax-free threshold as part.

Colombia uses a pay-as-you-earn (PAYE) system and employers withhold and remit taxes from salaries and other compensation every month.

Employees are not required to file an annual tax return, as this filing is handled by employers. Employees must update their Deductible Certification Form annually. This form is used to declare any applicable tax relief. The form is available on the Deel platform in the Compliance Documents section.

Tax Year

Tax Year: January 1 - December 31

Deductible Certification Form Due: April 15

Tax Forms and Resources

Tax rates

Tax rates are calculated according to progressive rates set by the Directorate of National Taxes and Customs. Taxes are measured in Unidad de Valor Tributario (UVT), meaning a Tax Value Unit that corresponds to a variable amount of pesos that is updated at least every year.

All Colombian taxpayers are entitled to the tax-free threshold built into the UVT tax rates and calculated by employers through the pay-as-you-earn (PAYE) system. Taxes are withheld by Deel and remitted to the tax authority on a monthly basis.

There are two different procedures for determining the employee’s base taxable income and which tax withholding rate is applicable to it.

In both procedures, the same tax discounts and benefits are applied; what changes is the way of calculating or determining the income base subject to withholding.

Tax forms are submitted by the employer, but employees must update their Deductible Certification Form each year, declaring any tax reliefs before April 15.

Procedure 1: By default, this procedure applies to all employees that have been working for under a year. As per article 385 of the tax statute (Esatuto Tributario), each month the employee’s taxable income base and corresponding tax withholding rate is recalculated and applied based on the employee’s income from that month.

Employees may request an early transition to tax procedure 2 after less than a year; approval is at the discretion of the employer. The transition from procedure 1 to procedure 2 can only occur at the start of January.

Procedure 2 : As per article 386 of the tax statute (Esatuto Tributario), each June and December, the average income from the respective 12 prior months is calculated. That average income is deemed the employee’s income base, and a corresponding tax withholding rate is applied to it. This tax withholding rate is fixed, and will be applied each month, for the ensuing 6 months.

In the event that the employee has been working for less than a year, but is taxed according to procedure 2, the employee’s taxable income base is calculated by dividing the total income from all months worked, by the amount of months worked. For example, if the employee has been working for 10 months, the total income from those 10 months is added up and divided by 10 to determine the income base. The corresponding tax withholding rate is then applied to it.

The transition from procedure 1 to procedure 2 can only occur at the start of January.

Bonuses

Bonuses are considered taxable income and are taxed at a regular rate.

Allowances and Expenses

Allowances are considered taxable income and are taxed at the employee’s regular tax rate.

Reimbursement of approved business expenses are not taxed. Expenses are reimbursed on the payslip.

13th and 14th Month Salary

The 13th and 14th month salary is a mandatory wage supplement in Colombia.

The 13th month salary is equal to one month’s average salary for the current year, and paid in two parts: early June, and mid December.

The 14th month salary is equal to one month’s average salary for the prior year and is paid in February. 14th month salaries are deposited directly into the employee’s selected severance fund, indicated during onboarding.

This salary is taxed as regular income and invoiced to clients in the month payment is made.

Social Security

All employees whose employment is governed by Colombian labor regulations must contribute to the social security system, which includes health, general pension, and coverage for workplace accident and illness insurance.

Contributions are shared between employers and employees, based on the employee’s monthly salary. Employee contributions are tax deductible and employer contributions on behalf of the employee are considered taxable income.

Deel withholds employee contributions and remits them on a monthly basis.

Individual income tax in Hong Kong is calculated according to progressive or standard rates set by the government of Hong Kong’s Inland Revenue Department (IRD).

Deductions and personal allowances depend on the individual circumstances of the employee, including marital status and number of dependents.

Tax Year

Tax Year: April 1 - March 31

Tax Returns Due: One month from the date of issue on the return

Tax Forms and Resources

General income tax information: How to file a return, rates, benefits
Tax rates
Tax return forms
Mandatory Provident Fund information

Tax rates

Tax rates in Hong Kong are assessed on net taxable income at either a progressive tax rate or a fixed standard rate of 15%, whichever is lower.

Tax deductions and personal allowances depend on personal circumstances such as marital status and number of dependents.

Taxes and mandatory contributions are withheld by Deel and remitted on a monthly basis.

Bonuses

Bonuses are considered taxable income and are taxed at the regular rate.

Allowances and Expenses

Company-paid allowances are taxed as income at the regular rate.

Reimbursement of approved business expenses are not taxable. Expenses are reimbursed on the employee’s payslip.

Mandatory Provident Fund

The Mandatory Provident Fund (MPF) is Hong Kong’s social security retirement savings fund. All Hong Kong citizens are required to participate. Contributions to the MPF are made by both employees and employers at a rate of 5% of employee’s total income, subject to minimums and maximums set annually.

Employee contributions are withheld from pay and remitted by the employer.

In Italy, residents are subject to national income tax, regional income tax, and municipal income tax. National income tax is calculated according to progressive rates set by the Agenzia Delle Entrate. Total income tax liability is impacted by gross income, household status, and regional and municipal residency of the employee.

All Italian residents are taxed on their worldwide income. Non-residents are subject to personal income tax only on Italian-sourced income. All tax residents are required to declare all foreign investments on the tax return.

Italian employers withhold earnings and remit taxes on salary and other compensation through the Pay-As-You-Earn (PAYE) system. Employees must file annual income tax returns with documents provided by Deel.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: Mod. 730: September 30 | Mod Reditti PF: November 30

Tax Forms and Resources

Tax Rates
Italy Tax Authority
Mod. 730: simplified tax return form
Mod. Reditti PF: alternate tax return form
Sistema Pubblico di Identitá Digitale: tax form submission website

Tax rates

Tax rates are calculated on income according to progressive rates set by the Agenzia Delle Entrate.All resident individuals are taxed on their worldwide income. Non-residents are taxed only on Italian-sourced income. Italy has no tax-free allowance or threshold.

Regional income tax is tied to an employee’s regional residence, with rates ranging from 1.23% to 3.33%. Municipal income tax is tied to the municipality with rates ranging from 0% to 0.9%.

Italian tax residents can qualify for tax credits, with eligibility depending on personal circumstances such as employment income level and number of dependents.

Taxes are withheld by Deel and remitted to the tax authorities every month.

Lavoratori Impatriati preferential tax program

The lavoratori impatriati is a preferential tax program for individuals who relocate to Italy for work and become Italian tax residents. Under this program, only 30% to 10% of overall income from salaried or equivalent employment is taxed. As long as the worker remains a tax resident in Italy, the lavoratori impatriati is applicable for 5 years.

Employees initiate application of the tax program through Deel, providing all required documentation and details in their request, which includes:

Proof of residence
Residence permits
Personal ID
A declaration stating that all eligibility criteria are met

Deel applies the preferential tax rate of either 30% or 10% to the employee’s salary based on the employee’s declared eligibility. If the preferential tax rate isn’t applied throughout the tax year, the employee can be reimbursed through their tax return. Deel is not responsible for confirming that eligibility criteria are met.

Simplified Income Tax Return

The Mod. 730 is a simplified income tax return. It can be filed only for income subject to ordinary taxation. Married couples can file this return jointly.

Employees not eligible to file the Mod. 730 are required to file a Modello Redditi PF via electronic filing. Married couples may not file this return jointly.

Bonuses

Bonuses are considered income and are taxed at the employee’s regular tax rate.

Allowances and Expenses

Allowances are considered income and are taxed at the employee’s regular tax rate.

Approved reimbursement of business expenses are not taxable. Reimbursed expenses appear on the employee’s payslip.

Social Security Contributions

Social security contributions are tied to the employment relationship and are different based on 3 tiers of job classifications: operai/impiegati (aka regular employees), quadro (aka managers), and dirigente (aka directors/executives). Contributions are made to the Istituto Nazionale Previdenza Sociale (INPS).

Contributions for employees are 40% of gross salary with 30% paid by the employer and 10% paid by the employee. These contributions fund the National Pension Scheme and other programs for unemployment, health, and maternity.

Contributions for dirigente (directors/executives) differ based on a variety of factors.

Variable Compensation in the Financial Sector

Variable compensation like bonuses and other incentive pay in the financial sector paid to executives and managers may be subject to an additional tax of 10%. This compensation includes any bonus, stock option or other incentive plan.

Kenya has a progressive income tax system. Total tax liability depends on annual taxable income, including bonuses and allowances. Income tax is levied at progressive rates and is collected by the Kenya Revenue Authority (KRA).

Both residents and non-residents are taxed on any individual income that is made in or derived from Kenya. Tax relief is available only to residents of Kenya.

Taxes are withheld as part of Pay-As-You-Earn (PAYE) system and remitted to the KRA in the month following payroll.

All taxpayers with a Kenya Revenue Authority identifier are required to file a tax return, even if they earned no income during the year. Deel will provide employees with a P9 Form: Tax Deduction Card in advance of tax filing.

Tax Year

Tax Year: January 1 through December 31

Tax Returns: June 30 of the following year

Tax Forms and Resources

Tax Rates

Taxes are collected according to progressive progressive rates set by the Kenya Revenue Authority. Rates range from 10% to 30% and are applicable to all earned income.

All residents of Kenya are entitled to a personal tax relief of 28,800 per annum (Kshs. 2,400 per month) and insurance relief.

Tax Exemption for People With Disability

People with disabilities are granted a tax exemption on their income for the first Kes.150, 000 of their monthly income.

Bonuses

Bonuses are considered taxable income and are taxed at the regular rate.

Allowances and Expenses

Allowances are considered taxable income and are taxed at the regular rate.

Approved business expenses are not subject to tax. Expenses are reimbursed on the employee payslip.

Social security contributions

National Social Security Fund (NSSF) is Kenya’s retirement savings program. All employers must register with NSSF. Contributions depend on the employees income and on average, employees pay about 5% of their monthly income into the NSSF. Employers match contributions made by the employee.

National Hospital Insurance Fund (NHIF) is Kenya’s health insurance program. All employed residents aged 18 or older must participate in the fund. NHIF contribution rates depend on gross monthly income and have a maximum contribution threshold.

National Industrial Training Authority (NITA) is a mandatory employer-paid levy calculated per employee. Funds are used to promote training and education for workers in Kenya.

Individual income tax in Nigeria is calculated according to the average tax method set by the Federal Inland Revenue Service (FIRS) on an annual basis. Earnings to date are annualized, then the tax is calculated for the full year.

All resident individuals are taxed on all income sourced from Nigeria, and all worldwide income. Non-residents are taxed only on Nigerian-sourced income if the duties of employment are wholly or partly performed in Nigeria, with some exceptions. There is no tax-free threshold in Nigeria, but there are statutory tax allowances and tax reliefs available.

Nigeria uses a Pay-As-You-Earn (PAYE) system and employers withhold and remit taxes from salaries and other compensation payable to their employees every month.

Tax forms (Form H1 and Form A) are submitted by employers and Nigerian employees are not required to file a return unless they have additional income to declare. Filings should be done through the FIRS e-filing system.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: Within the first 90 days of the calendar year.

Tax Forms and Resources

Tax Rates
Nigerian Tax Authority
Tax Forms: including H1 (employer's return) and A (individual income and claims for allowances and relief)

Tax rates

Tax rates are calculated according to the average tax method set by the Federal Inland Revenue Service (FIRS) on an annual basis. Earnings to date are annualized, then the tax is calculated for the full year.

Deel withholds and remits taxes before the 10th of every succeeding month.

Bonuses

Bonuses are considered taxable income and are taxed at a regular rate.

Allowances and Expenses

Company paid allowances are considered income and taxed at the progressive rate.

Reimbursement of expenses incurred by the employee in the performance of their duties, and from which the employee is not expected to make any profit are also tax deductible. Reimbursements will appear on the payslip.

Statutory Contributions

Mandatory monthly contributions may apply to full time Nigerian employees and their employers.

Employee contributions include:

2.5% of gross monthly salary towards the National Housing Fund. Only mandatory if the employee earns more than NGN 3,000 per annum
5% of gross monthly salary towards National Health Insurance Scheme
a minimum of 8% of gross monthly pay towards the employee’s selected Pension Fund Administrator

Employer contributions include:

1% of total annual payroll towards the Industrial Training Fund. Only mandatory if 5 or more persons are employed, and/or with a turnover of ₦50 Million, or greater per annum
1% of the employee’s gross monthly salary towards the Nigeria Social Insurance Trust Fund
10% of the employee’s gross monthly salary towards National Health Insurance Scheme
A minimum of 10% of the employee's gross monthly pay the employee’s selected Pension Fund Administrator
Only mandatory if 15 persons or more are employed. The employer may choose to bear all of the contribution, and if so, the minimum contribution rate is 20% of monthly gross.

Individual income tax in Uganda is calculated according to progressive rates set by the Uganda Revenue Authority.

All resident individuals are taxed on their worldwide income. Non-residents working in Uganda are taxed on Ugandan-sourced income only at different progressive rates.

Uganda uses a Pay-As-You-Earn (PAYE) system and employers withhold and remit taxes from salaries and other compensation payable to their employees every month. Employees must file their annual tax return online within six months after the end of the tax year.

Tax Year

Tax Year: July 1 - 30 June

Tax Returns Due: Final return due by 31 December

Tax Forms and Resources

Tax Rates: 2022 rates
Ugandan Tax Authority
Withholding Tax: information about withholding tax

Tax rates

Tax rates are calculated on all earned income according to progressive rates set by the Uganda Revenue Authority. All residents are entitled to a tax-free annual income threshold of UGX 2,820,000.

Non-residents working in Uganda are taxed on Ugandan-sourced income at different progressive rates

Deel withholds and remits taxes and other contributions to the Uganda Revenue Authority monthly. In determining the income chargeable to tax, an individual is allowed by the law to make the following deductions from their gross income.

Local Service Tax

Individuals are required to pay a Local Service Tax to their local Town Council. This tax is calculated according to bands, based on individual annual income. Deel withholds and remits this tax from salaries and wages, with deductions generally occurring during the first 4 months of the financial year (July-October), after which, deductions stop.

Bonuses

Bonuses are considered taxable income and are taxed at a regular rate.

Allowances and Expenses

Allowances are considered taxable income and are taxed at a regular rate.

Reimbursement of approved expenses are not taxable. Expenses are reimbursed on the payslip.

National Social Security Fund

The National Social Security Fund (NSSF) is a provident fund that covers all private sector employees. Employers must register their employees within 21 days of employment to participate in this benefit.

NSSF is deducted monthly and the employee contributes 5% of their gross salary while the employer contributes 10% of the employee’s gross salary.

Individual income tax in Austria is calculated according to progressive rates set by the Austrian Ministry of Finance. There are various factors that affect an individual’s tax liability including gross income, household status, and number of children.

All residents are taxed on their worldwide income. Non-residents are taxed only on Austria-sourced income.

Employees whose only source of income is employment income subject to withholdings at source are not required to file a return., though may do so if they wish to claim eligible deductions. All other taxpayers must file a tax return via the Austrian Tax Authority website.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: April 30 (paper form), June 30 (electronic form)

Tax Forms and Resources

Tax Rates
Tax Calculator
L16: Income Tax Form
E30 AVAB/AVAB Familiebeifilfe form: for family bonus plan tax deductions
Austrian Tax Authority
Tax Book Guides

Tax Rates

Taxes are withheld according to progressive tax rates set by the Austrian Government. These rates include a tax-free threshold available to all taxpayers.

Additional tax credits based on household status including the number of dependent children are applied via payroll.

Taxes and other contributions are withheld by Deel and remitted monthly.

Bonuses

Most bonuses are considered taxable income.

Allowances and Expenses

Allowances are taxed as income at the employee’s regular tax rate.

Reimbursement of approved business expenses are not subject to tax. Reimbursements are included on the employee’s payslip.

Home office allowance

Employees are entitled to €30 per month as a home office allowance. €25 is tax free. This payment is processed automatically as part of the employee’s payroll.

13th and 14th Month Salary

Austria has mandatory 13th and 14th month salaries. The 13th month salary is paid at the end of June and the 14th month salary is paid at the end of November. Both are equal to the average one month salary of the current year. If the employee has worked less than a full year, 13th and 14th month salaries are prorated based on: monthly salary divided by days in the year, multiplied by the number of days employed in the year.

The first €620 is tax exempt, with the balance of the supplement taxed at progressive rates.

Clients are invoiced for these salaries twice a year, when payment is made.

Social Security Contributions

Employers and employees are required to contribute to the social security system. Employer contributions are approximately 21% of the gross salary. Employee contributions are approximately 18% of the gross salary. Contributions are withheld and remitted by Deel.

There is no individual income tax in the United Arab Emirates (UAE)

Expenses and Allowances

Company paid allowances are not subject to income tax.

Approved expenses are reimbursed on the payslip.

Social Security Contributions

Only UAE and Gulf Cooperation Council (GCC) nationals must make social security contributions.

In total, an amount equal to 17.5% of the employee’s gross monthly salary is contributed to the General Pension and Social Security Authority (GPSSA). The employee contributes 5%, deductible from their gross monthly salary, and the employer contributes an amount equal to 12.5%. Additionally, the government may add an amount equal to 2.5% of the employee’s gross monthly salary to the contribution.

Contribution percentages may differ for based on the GCC country of origin.

Individual income tax in Israel is calculated according to progressive rates set by the Income Tax Ordinance of Israel. There are various factors that affect an individual’s tax liability including gross income, household status, and number of children.

All resident individuals are taxed on their worldwide income. Non-residents are taxed only on Israeli-sourced income.

Employees with income from a sole employer are not required to file an annual tax return, taxes are withheld by employers and remitted monthly to the Israel Tax Authority. Employees with income from more than one employer should make an income tax adjustment using a 116 form.

Employees wishing to apply for an annual tax refund can do so by submitting a 106 form. The employer is obligated to provide the employee with a completed 106 form by March 31 of the year following the tax year.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: April 30

Tax Forms and Resources

Tax Rates
Israel Tax Authority
Tax relief guide
101 form: Employee Onboarding Form
116 form: Application for Tax Relief and Income Tax Coordination

Tax Rates

Taxes are collected by the Israel Tax Authority according to a progressive tax schedule, ranging from 10 to 50%. These rates are set annually by the Israeli government.

Income tax credits are available for residents and vary depending on personal circumstances such as number of dependent children, marital status, and military or national service status. Tax credits are measured in points, with each point worth ILS 223 per month. All resident individuals are entitled to a minimum tax credit of 2.25 points. Credits are applied on each employee pay installment.

If employees indicate that they have multiple sources of income on their 101 form, they need to submit a corresponding “tofes tium mas” (tax coordination form). If an employee fails to do so, they’re automatically subject to a tax rate of 47%.

Bonuses

Bonuses are considered taxable income and are taxed at the progressive rate.

Allowances and Expenses

Allowances are taxed as income at the progressive tax rate.

Reimbursement of approved business expenses are not subject to tax. Reimbursements are included on the employee’s payslip. Non-approved expenses are subject to tax at the progressive rate. Please see the Expenses and Payroll Adjustments Guide for details.

National Insurance, Health Insurance, and Pension Contributions.

Employers and employees are required to contribute to Israel’s National Insurance and Health Insurance systems. Employee and employer contribution rates differentiate between income up to NIS 6,331 and income between NIS 6,331 and NIS 45,075. For Israel’s pension plan, employees contribute 6% of their base salary and employers contribute an amount equal to 6.5%.

Individual income tax in Russia is calculated according to progressive rates of 13% and 15%, set by the Federal Tax Service of Russia. Tax deductions are available and depend on personal circumstances such as number of children, children with disabilities, and children who are full-time students.

All resident individuals are taxed on their worldwide income. Non-residents are taxed only on Russian-sourced income. The income tax rate for non-residents is 30%.

Taxes are withheld at the source for wages and salaries and reported quarterly to the Tax Authorities. For other forms of income, employees complete a tax return form.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: April 30

Tax Forms and Resources

Tax rates

Taxes are collected by the Federal Tax Service of Russia according to progressive rates of 13% and 15% . Tax deductions are available to Russian taxpayers and depend on personal circumstances such as number of children, children with disabilities, and children who are full-time students.

Deel withholds and remits taxes to the Tax Authorities quarterly, on the 25th of the month following the end of the quarter.

Bonuses

Bonuses are considered taxable income and are taxed at a regular rate.

Allowances and Expenses

Allowances are taxed as income at the employee’s regular tax rate.

Reimbursement of approved business expenses are not subject to tax. Reimbursements are paid separately and aren’t included on the employee’s payslip.

Social Security Insurance Premiums

Employers must pay insurance premiums for their Russian employees. The insurance premiums cover compulsory pension insurance, social insurance, and health insurance. Employees do not pay any insurance premiums.

More information about insurance premiums, including contribution rates can be found on the Federal Tax Service of Russia website.

Work in Far North

Employees that work in the Far North, or equivalent areas with harsh climatic conditions may qualify for the district coefficient and the northern allowance/surcharge. Depending on the region where the employee works, and period of work in the area, a range between 10% and 100% can be added to base salary.

In Finland, earned income is taxed according to the progressive scale of state taxation. Earned income includes wages or salary, pension income and taxable social benefits, such as unemployment and parental allowances. For the purpose of municipal tax, the relevant flat tax rate is applied to earned income. If applicable, a flat rate church tax can be applied.

Finland uses tax cards to track estimated annual earnings, tax withholding rates, and annual income limits. It’s the employee’s responsibility to confirm tax card details for the employer.

All residents of Finland must pay income tax on their worldwide income. Non residents only pay income tax on Finland-sourced income, generally at a rate of 35% on salary.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: Varies by taxpayer. Details can be found on MyTax page

Tax Forms and Resources

General income tax information
Social security contribution rates
MyTax, general tax information: request a tax card and file taxes
Tax and tax card FAQs
Tax percentage calculator

Tax rates

Taxes off of residents of Finland’s earned income are collected by the Finnish Tax Administration according to progressive tax rates. Each year, employees use a tax card to estimate their annual income and set their tax withholding rate. The card is then shared with Deel who withhold taxes according to the card.

The employee tax card has one income limit for the entire year's income. The employer initially uses the withholding tax rate of the tax card. However, if the income limit of the tax card is exceeded during the year, the employer then uses the additional percentage indicated on the tax card for the rest of the year. The employee can apply for a new tax card if they believe the income limit or withholding rate on the card is insufficient or incorrect.

Each year, the tax authority automatically issues new tax cards to employees. New tax cards become valid on the 1st of February. It is the responsibility of the employee to confirm the new tax card’s details, including estimated annual earnings, the withholding rate, and annual income limit.

Bonuses

Bonuses are considered taxable income and are taxed at the regular rate.

Allowances and Expenses

Allowances are taxed as income.

Reimbursement of approved business expenses are not taxable. Expenses are reimbursed on the employee’s payslip.

Social Security Contributions

Both employers and employees contribute to Finland’s health insurance, pension, and unemployment social security systems. Employee pension contribution rates vary based on age, employer contribution rates vary based on company size. The percentage rates for contributions are revised on an annual basis.

Individual income tax in South Korea is calculated according to progressive rates set by the National Tax Service. There are various factors that affect an individual’s tax liability including gross income, number of children or dependents, and domicile of the taxpayer.

All resident individuals are taxed on their worldwide income. Non-residents are taxed only on South Korean-sourced income.

Taxes are withheld by employers and remitted monthly to the Tax Authorities. Full-time employees with only one source of income do not need to file their own taxes; Deel will file on their behalf. Overpayments will be refunded automatically by the tax authorities.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: March 10

Tax Forms and Resources

Tax rates

Taxes for national purposes are collected by the National Tax Service according to a progressive tax schedule. These rates are set by the South Korean government. Local income tax is also collected at a rate of 10% of the national income tax rate.

Tax deductions and tax credits are available to South Korean residents and depend on personal circumstances such as income amount, number of dependents, and disability status.

All taxpayers are eligible for a basic deduction of KRW 1,500,000. This amount is subject to change annually. The deduction is applied during the year end settlement.

Tax credits are usually applied in a lump sum when taxes are filed once a year. Deel may supply employees with the required form to claim tax credit eligibility, or the employee may enter and confirm their eligibility for tax credits online via the Hometax government website.

Bonuses

Bonuses are considered taxable income and are taxed at this rate.

Allowances and Expenses

Allowances are taxed according to the income taxable table.

Reimbursement of approved business expenses are not subject to tax. One exception exists for entertainment expenses; these may be taxed at 10%, as per Deel’s policy. Reimbursements are not included on the employee’s payslip.

Social Security Contributions

Employers and employees are required to contribute to the Korean social security system.

Employees contribute:

4.5% of gross monthly income for National Pension
3.545% of gross monthly income for National Health Insurance
12.81% of their National Health Insurance amount for Long-term Care Insurance
0.9% of their gross monthly salary for Employment insurance

Employers contribute amounts equivalent to:

4.5% of gross monthly income for National Pension
3.545% of gross monthly income forNational Health Insurance
12.81% of your National Health Insurance amount for Long-term Care Insurance
1.15 -1.75% of gross monthly income for Employment Insurance (varies by industry)
0.5% of gross monthly income for the residence tax
0.76% of gross monthly income for Workers compensation(also called it as Industrial Disaster Insurance)

Individual income tax in Croatia is calculated according to progessive rates set by the Ministry of Finance of Croatia. Various factors can affect an individual’s tax liability, including personal circumstances such as gross income and number of dependents. Municipal tax may apply, with rates depending on the employee’s place of residence.

All residents of Croatia are taxed on their worldwide income. Non-residents are only taxed on income from sources within Croatia.

Taxes are withheld and remitted to the Croatian Tax Administration in the month following payroll. In most cases, employees are not required to file an annual tax return.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: End of February

Tax Forms and Resources

Tax rates

Taxes are collected by the Tax Administration organization of the Croatian Ministry of Finance according to progressive tax rates on the basis of gross monthly income.

All residents of Croatia must pay income tax, including income made from sources outside of the country.

All taxpayers are entitled to a personal tax allowance of 4,000 HRK per month.

Additional tax relief and tax allowances are available and depend on personal circumstances such as age, disability status, and number of dependents. Employees fill out a tax card during the onboarding process to determine if they are eligible for any tax relief.

If applicable, municipal tax is levied as a surtax to the employee’s regular personal income tax at rates that range from 0%-18%.

Bonuses

Bonuses are non-taxable up to HRK 7,500 a year per employee. Any amount above HRK 7,500 is considered taxable income and is taxed at the regular rate.

Allowances and Expenses

Allowances are taxed as income.

Reimbursement of approved business expenses is not taxable. Expenses are reimbursed and included as part of the employee’s salary.

Social Security Contributions

Employers contribute to Croatia’s health insurance system, at a rate of 16.5% of the employee’s gross salary.

Employees contribute to Croatia’s pension fund at a rate of 20% of their gross salary. Contributions are usually divided into two pillars.

The first pillar is under the jurisdiction of the Croatian Institute for Pension Insurance (HZMO). The employer calculates 15% of the gross amount from the employee’s salary, withholds and pays it to the State Treasury.

The second pillar is pension insurance and is regulated by the Law on Mandatory Pension Funds and the Law on Pension Insurance Companies. They are managed by special pension companies that are privately owned and supervised by the Croatian Financial Services Supervisory Agency (Hanfa). The employer withholds 5% of the gross amount from the employee’s salary and pays it into a selected mandatory pension fund. Employees over 40 years of age may choose to contribute only towards the first pillar, but at a rate of 20%.

Individual employment income tax in Serbia is calculated according to a flat rate of 10% set by the Ministry of Finance. A supplementary income tax is applied to incomes 3 times higher than the average annual salary.

All residents of Serbia are taxed on their worldwide income. Non-residents are taxed on income from sources within Serbia and worldwide income derived from or related to work within for for Serbia.

Taxes are withheld by Deel and remitted to the Tax Administration in the month following payroll. Taxpayers earning more than 3 times the average annual salary are required to file an application for annual personal income tax.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: May 15

Tax Forms and Resources

Tax Rates

Income taxes are collected by the Tax Administration according at a flat rate of 10%.

Taxpayers with annual incomes of 3 or more times the annual salary are subject to supplementary taxes of between 10 and 15%.

Taxes are offset by a personal tax deduction equal to 40% of the average annual salary. Additional tax relief applies to taxpayers with dependents. Employees can apply for tax relief online by using their personal ID card with electronic signature, or in-person at a qualified tax administration office.

Bonuses

Bonuses are considered taxable income and are taxed at the regular rate.

Allowances and Expenses

Allowances are taxed as income.

Reimbursement of approved business expenses are not subject to tax. Expenses are reimbursed on the payslip.

Social Security Contributions

Serbia’s social security program consists of: pension and disability insurance, health insurance, and unemployment insurance. Social security contributions are withheld from pay and are remitted by the employer.

The employer contributes an amount equivalent to:

11% of employee gross income to pension and disability insurance
5.15% of employee gross income to health insurance

The employee contributes:

14% of their gross salary to pension and disability insurance
5.15% of their gross salary to health insurance
0.75% of their gross salary to unemployment insurance

Individual income tax in Bulgaria is calculated according to a flat rate of 10% set by the National Revenue Agency (NRA) of Bulgaria. Tax relief is available based on personal circumstances, including household status, number of children, voluntary insurance programs, and disability.

All residents of Bulgaria are taxed on their worldwide income. Non-residents are only taxed on income from sources within Bulgaria.

Taxes and social security contributions are withheld and remitted by Deel each month following payroll.

Employees may request that Deel file annual tax returns on their behalf, provided employment earnings with Deel are their only source of taxable income. All other taxpayers must file an annual return by April 30.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: April 30

Tax Forms and Resources

General income tax information
Tax forms: tax returns, claims for tax relief and benefits
Article 45 Note | Служебна бележка по чл. 45 от ЗДДФЛ: income note necessary to file tax return. Provided by Deel upon request.

Tax rates

A flat tax of 10% applies to all income, less any contributions for social security programs.

Tax relief and tax benefits are available. Employees must submit the applicable claim form to Deel by December 15.

Bonuses

Bonuses, commissions, and discretionary incentive payments are taxed as income.

Allowances and Expenses

Reimbursement of approved business expenses are not subject to tax. Reimbursement is not processed with payroll, and is not included on the payslip.

Allowances are considered a benefit to the employee and are subject to income tax, including social security contributions.

Social Security Contributions

Mandatory social security contributions are not included in taxable income. Contributions are withheld and remitted by Deel monthly. Total employer contributions range from 18.92% to 19.62% while employee contributions equal 13.78% up to a monthly contribution threshold of BGN 3400 in monthly salary.

State Social Insurance (DOO) includes the following programs:

Pension Fund: Employer 8.22% | Employee: 6.58%
Illness and Maternity Fund:Employer 2.10% | Employee 1.40%
Unemployment Fund: Employer 0.6% | Employee 0.4%

Employers are also required to contribute to the Occupational Accident and Disease Fund at a rate of 0.4% to 1.1% based on the company’s classification. There is no employee contribution.

Additional Mandatory Pension Insurance (DZPO) includes additional contributions of 2.8% for employers and 2.4% for employees up to annual limits.

Health Insurance includes contributions of 4.8% for employers and 3.2% for employees, up to annual limits.

The Republic of Armenia has a flat income tax rate applicable to worldwide income for residents, and Armenian-only income for non-residents. Tax rates have been decreasing annually since 2020. All income, including bonuses, allowances, benefits, incentive payments, and other income is subject to taxation at the flat tax rate, and there are no significant deductions or exemptions.

Employers are required to withhold and remit taxes to the State Revenue Committee, including Personal Income Tax (PIT), Stamp Fees, and Social Security contributions.

Most employees are not required to file an annual tax return unless they have income that has not been subject to tax withholding at source.

Tax Year

Tax Year: January 1 - December 31

Tax Returns: April 20 for employees with income not subject to withholdings at source

Tax Resources

Income Tax Rates

Income taxes in Armenia are flat, and have been decreasing annually since 2020.

January 1, 2022: 23%
January 1, 2021: 22%
January 1, 2022: 21%
January 1, 2023: 20%

Stamp Fees

Stamp fees are withheld and remitted monthly by employers to cover the cost of insurance for injured or deceased military service members. Rates are progressive, and applicable to all income earned within each band.

As of January 1, 2022 the Stamp Fee rates are:

Income up to AMD 100,000: Fee of AMD 1,500
AMD 100,001 to 200,000: Fee of AMD 3,000
AMD 200,001 to 500,000: Fee of AMD 5,500
AMD 500,001 to 1,000,000: Fee of AMD 8,500
All income over AMD 1,000.000: Fee of AMD 15,000

Social Security

Social security payments cover mandatory pension contributions for all employees born after January 1, 1974. Employers withhold and remit social security payments from all income earned by employees, including salaries, benefits, bonuses, allowances, and other incentive or discretionary income.

All income up to AMD 500,000: 3.5%
All income over AMD 500,000: 10%

Social security contributions are capped at AMD 77,000 monthly.

Expenses and Allowances

Reimbursement of approved business expenses are not taxable in Armenia. Expenses should be invoiced to Deel and are reimbursed by separate transfer. They are not included with the payslip.

Allowances are treated as income for purposes of taxation, including personal income tax, stamp fees, and social security contributions.

Bonuses

Bonuses and other incentive based compensation are treated as income for purposes of taxation, including personal income tax, stamp fees, and social security contributions.

Individual income tax in Uruguay is calculated according to progressive rates set by the General Taxation Directorate of Uruguay. Various factors can affect an individual’s tax liability, including gross income, marital status, and number of dependents.

All resident individuals are taxed on their worldwide income. All non-residents are taxed on their Uruguay-sourced income.

Uruguay uses a Pay-As-You-Earn (PAYE) system and employers withhold and remit taxes from salaries and other compensation payable to their employees every month. Employees do not need to file their own taxes unless they have more than one employer, or work simultaneously as an EOR and independent contractor at the same time.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: Between June and August, depending on ID number

Tax Forms and Resources

Tax Rates
Tax Forms: Form 3100
Social Security Contributions: rates and information

Tax rates

Taxes are collected by the General Taxation Directorate of Uruguay according to a progressive tax schedule. A basic tax-free threshold is available to all taxpayers with rates above the threshold ranging from 10% to 36%.

Contributions to social security programs are tax deductible, and further tax deductions are available for residents with dependent children.

Deel withholds taxes on income and remits them to the Tax Authorities by the 10th of every month following payroll.

Bonuses

Bonuses are considered taxable income and are taxed at a regular rate.

Allowances and Expenses

Allowances are taxed as income at the employee’s regular tax rate.

Reimbursement of one night or longer travel-related business expenses are non-taxable. Additional expenses are generally treated as an allowance or benefit and are taxed as income at the employee’s regular rate.

Social Security Programs

Both employer and employee must make contributions to social security programs. Contributions to these programs are tax-deductible.

Contribution rates for employees:

Retirement, 15% of gross monthly salary
National Health Insurance, 4.5% to 8% of gross monthly salary
Labour Restructuring Fund 0.10%of gross monthly salary

Contributions for employers:

Retirement, an amount equivalent to 7.5% of the employee’s gross monthly salary
National Health Insurance, an amount equivalent to 5% of the employee’s gross monthly salary
Labour Restructuring Fund, an amount equivalent to 0.1% of the employee’s gross monthly salary
Guarantee Fund (FGL) an amount equivalent to 0.025% of employee’s gross monthly salary
Accident Insurance, an amount equivalent to 4.37% of employee’s gross monthly salary

13th and 14th Month Salary

Employees in Uruguay receive a supplemental salary called ‘Aguinaldo’, or otherwise, the 13th month salary. The salary is equal to one month’s salary and is paid in two installments, one half in June and one half in December. The June installment is determined by taking income from 1 December to 31 May and dividing by 12. The December installment is determined by taking income from June 1 to Nov 30 and dividing by 12. Payments are prorated on hiring and termination.

The 14th month salary is a bonus wage paid before an employee takes paid time off (PTO), and is supplemental to normal PTO payment. The amount is equivalent to one day’s net salary for each day of PTO taken, is taxed as income, and not deducted for social security contributions.

Individual income tax in Rwanda is calculated according to progressive rates set by the Government of Rwanda.

All resident individuals are taxed on their worldwide income. All non-residents are taxed on their Rwandan-sourced income. Residents and non-residents are taxed at the same rates.

Rwanda uses a Pay-As-You-Earn (PAYE) system and employers withhold and remit taxes from salaries and other compensation payable to their employees every month. Employees do not need to file their own taxes, nor an annual tax return, unless they have multiple sources of income.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: 31 March of the following year after the tax period

Tax Forms and Resources

Tax rates

Taxes are collected by the Rwanda Revenue Authority according to progressive rates that range between 0% and 30%. The first RWF 60,000 earned is taxed at 0%, the next RWF 100,000 earned is taxed at 20%, and any remaining income is taxed at 30%.

Employees with more than one employer are subject to a PAYE withholding rate of 30% on all taxable income earned from any additional employer.

There are no other significant personal tax relief for individuals in Rwanda

Bonuses

Bonuses are considered taxable income and are taxed at the employee’s regular rate.

Allowances and Expenses

Allowances are taxed as income at the employee’s regular tax rate.

Reimbursement of approved business expenses are not subject to tax. Reimbursements are included on the employee’s payslip.

Social Security Contributions

Both employer and employee must make mandatory contributions to social security programs through the Rwanda Social Security Board (RSSB). Social security programs contributions are not tax-deductible.

Contribution rates for employees:

Pension Scheme, 3% of gross monthly salary
Maternity Leave Scheme, 0.3% of gross monthly salary
Community-Based Health Insurance Scheme, 0.5% of net salary

Contributions for employers:

Pension Scheme, an amount equal to 5% of the employee’s gross monthly salary
Maternity Leave Scheme, an amount equal to 0.3% of the employee’s gross monthly salary
Community-Based Health Insurance Scheme, an amount equal to 0.5% of the employee’s net monthly salary

Individual income tax in Ghana residents is calculated according to progressive rates set by the Government of Ghana. Individual income tax for non-resident individuals is generally taxed at a flat rate of 25%.

All resident individuals are taxed on their worldwide income. All non-residents are taxed on their Ghanian-sourced income.

Ghana uses a Pay-As-You-Earn (PAYE) system and employers withhold and remit taxes from salaries and other compensation payable to their employees every month. Employees are required to file a personal tax return each year. Deel will provide employees with a DT_0103 (Personal Income Tax form) in advance of tax filing. Overpayments and underpayments are reconciled when tax returns are filed.

Tax Year

Tax Year: January 1 - December 31

Tax Returns Due: 30 April

Tax Forms and Resources

Tax Rates
General Tax Information: PAYE information, deductions, allowances, and bonuses
Tax Tools: tax calculator and calendar

Tax rates

Taxes are collected by the Ghana Revenue Authority according to progressive rates that range between 0% and 30%.

Personal tax relief is available and depends on personal circumstances including number of dependents, age, and disability status. A resident individual can apply to the Commissioner-General in a tax relief application form.

Bonuses

Bonuses are considered taxable income and are taxed at a special rate.

Total bonus payments made by employers to their employees in a year of assessment are taxed at 5% up to 15% of the annual basic salary of the employee. Where the bonus payment exceeds 15%, the excess will be added to the employment income of the employee and taxed at the graduated tax rate.

Allowances and Expenses

Allowances are taxed as income at the employee’s regular tax rate.

Reimbursement of approved business expenses are not subject to tax. Reimbursements are included on the employee’s payslip.

Social Security and National Trust (SSNIT) Contributions

Both employer and employee must make mandatory contributions to the SSNIT social insurance scheme. Contributions are structured into three tiers, the first two require mandatory contributions, while the third is voluntary.

Contribution rates for employees:

5.5% of basic monthly salary

Contributions for employers:

An amount equal to 13% of the employee’s basic monthly salary

In total, an amount equal to 18.5% of the employee’s basic monthly salary is contributed, with 13.5% going to the First-Tier Basic Social Security Scheme (2.5% of which goes to the National Health Insurance Scheme), and the final 5% going to the Second Tier Occupational Scheme.

The voluntary third tier, there are no restrictions on contribution amounts. All contribution amounts under 16.5% of the employee's basic monthly salary are tax-deductible and are tax-free for both employers and employees.