Worldwide: SKP Global Expansion Updates - January 2017 | Issue 11

Last Updated: 7 March 2017
Article by SKP  



VAT Act Section 14 amendment

Recently, Section 14 of the Value Added Tax (VAT) Act has been amended. Post amendment, individuals owing businesses who are not registered under VAT are required to account for VAT on services received from abroad.

Effective date: 2 February 2017

For more information, click here.


Change in the withholding tax rate on payments for buildings and construction related aspects

The Nigerian Finance Minister issued the amended regulations to reverse the reduced withholding tax (WHT) rate of 2.5% to the initial rate of 5% for all aspects of building and construction related activities.

The new regulations specifically state that all relevant transactions which were subjected to the 2.5% rate, under the 2015 regulations, should remain valid.

Taxpayers e-mail address allows electronic transmission of tax receipts

The Federal Inland Revenue Service (FIRS) released a notice in which they have requested the taxpayers to validate their corporate/official email addresses. This will allow the taxpayers to receive electronic tax collector's receipts from the FIRS.



Amendment in Argentina tax regime

Recently, amendments have been introduced by enactment of Law No. 27,346. The amendments are summarised below:

  • Increase in the annual income tax deductions for individuals and revision made to the non-taxable minimum amounts and family dependents.
  • Effective from 1 January 2017, a tax will be introduced on betting at the rate of 0.75% per beton the income derived from electronic gaming and automated betting machines. Also, an online betting tax at the rate of 2% is imposed on income derived from gambling and betting games operated through the internet, irrespective of the location of servers.

Extension of 'Productive Recovery Program'

The Productive Recovery Program (REPRO) was started 14 years ago to provide financial assistance to employers in order to help them overcome declining levels of employment. REPRO was intended to last as long as the national occupational emergency lasted.

As the national occupational emergency is extended till 31 December 2017, REPRO will continue to remain in effect till 31 December 2017.

Non-resident investors to obtain Tax Identification Number

Recently, the Federal Administration of Public Revenues (Administración Federal de Ingresos Publicos (AFIP)) in the Official Gazette announced a special Tax Identification Number (TIN) for non-resident entities.

The Argentinean government wants to monitor investments in financial products by non-resident entities.

Investments by non-resident entities are to be made through authorised intermediaries (banks, brokers, etc.), who will obtain the TIN for foreign investors.


New withholding tax obligation

Recently, a private ruling 5/2017 (Solução de Consulta 5/2017) has been published in the Official Gazette. As per the new ruling, withholding tax will be applicable on payments made to individuals or legal entities resident in Canada by Brazilian sources for technical services provided, with or without the transfer of technology being involved. This transaction is treated as a royalty. Hence, the rate of withholding tax on such payments is 15% in Brazil.

For more information, click here.


Rates of social security contribution and EI premium for 2017

The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2017 will increase from CAD 54,900 to CAD 55,300. However, the basic exemption amount for 2017 will remain CAD 3,500. Individuals earning less than the basic amount are not required to make CPP contributions. There is no change in employee and employer contribution rates.

For more information, click here.

Maximum earnings for individuals who will be required to pay premiums for Employment Insurance (EI) for 2017 has been increased from CAD 50,800 to CAD 51,300. The employee contribution rate will decrease from 1.88% to 1.63% for a maximum contribution of CAD 836.19. The employer contribution rate is 2.282% for a maximum contribution of CAD 1,170.67.

For more information, click here.

Changes in the temporary foreign worker program

Immigration, Refugees and Citizenship Canada (IRCC) announced that from 13 December 2016, the four-year cumulative duration limit no longer applies to certain temporary foreign workers. Previously, the individuals who reached the four-year maximum duration must reside outside Canada for at least four years before being eligible for another work permit.

Applicants who were refused a work permit application prior to 13 December 2016 based on the four-year cumulative requirements can submit a new application.

For more information, click here.


Guidance on electronic receipts rule

As per the update, the Mexican tax administration has issued a new guidance in January 2017 which provides standards for compliance with the electronically or digitally provided tax receipts. It includes the following:

  • Digital tax receipt online;
  • Digital tax receipt provided via the internet; and
  • Digital verification methods

The United States of America

Increase in salary requirement for employees exempt from overtime in New York

After the statutory increase in minimum wage rate, the New York State Department of Labour has issued notices for the implementation of new rules, declaring an increase in the minimum weekly salary thresholds. It has increased from USD 675 per week to USD 825 per week and USD 35,100 to USD 42,952 annually for qualifying for the executive and administrative overtime exemptions.

As per the federal overtime regulations, the federal salary threshold has been increased from USD 23,660 to USD 47,476 annually for white-collar exemptions.

For more information, click here.

New York Governor announces Minimum Wage Enforcement and Outreach Unit

A division consisting of 200 members has been formed known as the Minimum Wage Enforcement and Outreach Unit to make sure that all workers are being paid accurately (i.e. at least the minimum wage rate).

In case of misconduct, employers are liable to a fine of USD 3 for every hour in addition to the wages and up to 100% liquidated damages and civil penalties.

For more information, click here.

Morristown: New Jersey released notice for employee paid sick leave

The town of Morristown, New Jersey released its 'Notice of Employee Rights to Paid Sick Time'. As per the ordinance, all the employers in Morristown are required to circulate this notice to their employees and are liable to provide paid sick time per year, based on the size of the workforce. Detailed information like when, how, and the purpose of leave have been explained in the ordinance.

It also provides information about certain notices, record-keeping, and provisions relating to anti-retaliation.

For more information, click here.

Increase in salary threshold for exempt employees and paid family leave for 2018

Recently, the New York State Governor has passed a Bill which increases the minimum wage in different schedules in regions of three states, which are given below:

  • New York City;
  • Nassau, Suffolk; and
  • Westchester counties.

The rate has been increased to USD 10 per hour for year ended 2016 and will increase by USD 1 every year for the next five years. The resulting minimum wage will be USD 15 on 31 December 2021.

Increase in US Visa fee from December 2016

United States Citizenship and Immigration Services (USCIS) has announced that those who are filing for naturalisation, permanent residency and non-immigrant visas have to pay higher fees for most types of US immigration applications.

The following categories have seen an increase in fees for six years:

  1. For those who are applying for I129 non-immigrant work visas (L1 visa, H1B visa and H2B visa) have to pay USD 460 instead of USD 325.
  2. For those who are applying for I140 employment based immigrant visa petitions under EB1, EB2 and EB3 have to pay USD 700 instead of USD 580.
  3. Fees for the naturalisation application has been increased from USD 595 to USD 640.
  4. Fees for a Certificate of Citizenship application has been increased from USD 600 to USD 1,170.
  5. To register a permanent residence or adjust status, fees have been increased from USD 985 to USD 1,140.
  6. For US citizens to put in a petition for a relative who wants to immigrate to the US (form I-130), the fee has been increased from USD 420 to USD 535.

For more information, click here.

New form requirement (W-4) for employers

At the time of hiring a new employee, the employer is required to obtain a signed Form W-4 from the IRS.

Form W-4 provides information about the current tax rates, exemptions, etc. Although Form W-4 gets revised each year, it is valid till an employee provides a new form.

For more information, click here.

Proposed bill to limit corporate deduction up to 1 Million

To limit corporate tax deduction which are allowed as performance bonus, the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act has been introduced.

This Bill amends the Internal Revenue Code, with respect to the USD 1 million limitation on the deductibility of employee compensation, to:

  • Extend such limitation to any individual who is a current or former officer, director or employee of a publicly-held corporation;
  • Eliminate the exemption from such limitation for compensation payable on a commission basis or upon the attainment of a performance goal; and
  • Make such limitation applicable to all publicly-held corporations that are required by the Securities and Exchange Commission to register securities and provide periodic reports to their investors.

For more information, click here.

To view the full article click here

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Events from this Firm
23 Jan 2018, Webinar, Mumbai, India

Join us for our webinar for insights on how the Indian government could possibly reform, perform and transform the economy through Union Budget 2018.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:
  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.
  • Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.
    If you do not want us to provide your name and email address you may opt out by clicking here
    If you do not wish to receive any future announcements of products and services offered by Mondaq you may opt out by clicking here

    Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

    Use of

    You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


    Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

    The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


    Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

    • To allow you to personalize the Mondaq websites you are visiting.
    • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
    • To produce demographic feedback for our information providers who provide information free for your use.

    Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

    Information Collection and Use

    We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

    We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

    Mondaq News Alerts

    In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


    A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

    Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

    Log Files

    We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


    This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

    Surveys & Contests

    From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


    If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


    From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

    *** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


    This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

    Correcting/Updating Personal Information

    If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

    Notification of Changes

    If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

    How to contact Mondaq

    You can contact us with comments or queries at

    If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.

    By clicking Register you state you have read and agree to our Terms and Conditions