Payroll Tax Summaries for Selected Countries Tax rates Income taxes. Current individual income tax rates are levied on a graduated scale ranging from 18% to 45%. Social security. There is no social security tax in South Africa but employees and employers are each required to contribute 1% of wages to the State Unemployment Insurance Fund (UIF) up to certain amount per employee per year. Pension fund contributions may be made by an employer on an employee's behalf at up to 20% of the employee's remuneration, or, they may be made by the employee at the greater of R1,750 or 7.5% of remuneration from covered employment. Both the employer and employee's contributions are limited to R178,464 per year per employee. Individuals may also make retirement fund annuity contributions at the greater of 15% of non-retirement funding employment income after deducting certain expenditures. Employee contributions to these funds are tax deductible. Relief from double taxes South Africa has an income tax treaty with the U.S. (see Appendix A, page A-73). SPAIN SPAIN Basis for tax Residents are subject to tax on worldwide income and nonresidents are subject to tax on Spain-source income only. Residence rules An individual who spends more than 183 days in a calendar year in Spain, who has business or economic interests in the country, or whose family permanently resides in Spain is considered a resident. Residence is in terms of the entire relevant tax year (the calendar year and the tax year are normally one and the same) and not just as of the date residence actually began. An individual cannot be a part-year resident under Spanish law. Taxable employment income Taxable employment income generally includes all compensation and most benefits-in-kind received for work performed. Taxable fringe benefits in a typical expatriate compensation package include: * employer payments of personal income taxes; * tuition reimbursements; * cost-of-living allowances; * certain expatriate premiums; * housing allowances; * personal use of a company car; * bonuses; C-57