Equus Blog

Equus Tax Engine: A Very Busy Season of Tax Updates

For many tax professionals in the United States, the first quarter of the year marks the start of their “busy season,” with a fast-approaching April 18, 2022, filing deadline for individual tax returns. At Equus, our in-house tax team has just wrapped up our “busy season” after releasing versions 21.6 and 22.1 of the Equus Tax Engine, delivering a total of 114 updates for 94 authorities (including 60 countries and 34 sub-authorities).

Most of these updates address changes effective January 1, 2022, for countries with a calendar tax period. All but eight of the ninety-five Equus Tax Engine-supported countries use a calendar year to measure individual taxpayers’ income to impose tax. Equus aims to deliver tax updates in a release close to their effective dates, enabling our clients to use current tax data to project assignment costs using Cost Estimate and prepare balance sheets and pay packages using Compensation Calculation in AssignmentPro.

Busy season for our in-house tax team began in October, as we monitored the progress of tax legislation around the world, typically a part of countries’ annual budgeting processes. The primary purpose of taxation, after all, is to fund government programs.

Countries rely on a lawmaking process to introduce changes to tax law. Some countries, like Canada and the United States, also have built annual inflationary adjustments into existing tax rules. These adjustments impact tax bracket and deduction thresholds and are linked to a consumer price or similar index. The tax team increasingly leverages such indices to deliver more of these annual updates on a timely basis.

Look for release notes explaining the use of an index, like this one for Canada in release version 21.6:

Although our annual busy season is now behind us, the tax team is still hard at work keeping the Tax Engine current. We continue monitoring for tax updates around the world, including for non-calendar tax year countries such as Australia and India.

In addition, we are also taking advantage of this time before the next busy season is upon us to increase the Tax Engine’s functionality and useability. The tax team is now focused on delivering new features and enhancements such as for European frontier workers. Clients can learn about our current release plan by following the Equus Tax Engine – Upcoming Tax Updates in the AssignmentPro Help Center or by attending the Equus Tax Engine release webinar!

About Vickie Lau

Before her career in Global Mobility, Vickie held increasingly senior positions in financial and technology auditing, first at Coopers & Lybrand (PwC) and later became Vice President at JP Morgan Singapore before moving to New Zealand where she joined a tax practice. In those roles, she gained valuable experience in the areas of process and control management. She has always been fascinated by tax, an interest that motivated her to earn a Master’s degree in Taxation, as well as international certifications from San Jose State University. 

Vickie joined Equus in 2007, as Equus’ VP of Tax Solutions. Her responsibilities include maintaining all facets of tax calculations for over 150 supported authorities; overseeing release processes to deliver enhancements and periodic updates, and managing clients’ implementation and support. She ensures that the tax intelligence built-in to Equus solutions is always accurate and up-to-date.

Look out for Vickie’s blogs focused on tax updates within our software and industry insights on taxation within the Global Mobility Space.