We’re thrilled to announce the release of AIRINC’s quarterly Cost of Living and Compensation Data Points! Our comprehensive data update covers key elements such as housing prices, goods and services, taxes and exchange rates. This quarter’s cost-of-living research was conducted primarily in North America, Central and South America, the Middle East, Africa, Maritime Southeast Asia, and Oceania.
Overall, the US rental market has stabilized compared to the past few years. New construction of apartments has eased shortages in many areas, although high-quality, independent family houses are still difficult to find in and near secondary cities and in rural areas. Rent increases for existing leases have slowed, allowing tenants to stay in place rather than seeking smaller or cheaper accommodation.
Both Cape Town and Johannesburg saw rents increase this past quarter. The very small supply of desirable properties increased our rent ranges and led to our sources providing higher budgets.
Dubai has seen rental inflation increases slow this quarter while Abu Dhabi has seen demand surge due to increased desirability. As a result, rental inflation in Abu Dhabi has outperformed Dubai.
The Argentine economy has long been in turmoil, and while that continues to be the case, President Javier Milei’s recent policy decisions have resulted in a reported $700 million of deposits in Argentine pesos in July and August-–by Argentines themselves. Following his election in December of last year, Milei has enforced a series of aggressive austerity measures in the hopes of strengthening the country’s finances and stemming capital flight. Recently, Milei passed a tax amnesty program which would allow Argentinians to deposit any cash they had been hiding off-the-books without any legal or financial repercussions for having done so. This may also include funds that are kept abroad, but unreported. The current tax amnesty program gives Argentinians until the end of September to reveal any hidden funds. This is one of the more recent of Milei’s fiscal policies, which altogether have increased the country’s treasury by an estimated $8 billion since the start of his presidency.
Argentina has repealed the tax reform that was enacted in late 2023 by the previous government and reinstating the previous individual income tax on salaries. The intent is to broaden the scope of employees subject to tax. The tax reform changes include new tax brackets and revised deductions. The top marginal tax rate is unchanged at 35%. Deductions and allowances have been modified, with a revised basic allowance, personal allowances that vary by family size, and an earned income allowance. Social security contributions are again deductible.
The rate for employee social security contributions is unchanged at 17% and the maximum contribution is adjusted monthly based on the consumer price index. The annualized maximum based on the September 2024 maximum salary is ARS 5,237,166.
The law enacting the tax changes was approved in July 2024 but is retroactively effective from January 1, 2024. There is a transitional rule for the first six months of 2024 where the old and new tax rules are compared. If the new tax rules result in a higher tax for the period January to June, a deduction is available equivalent to the difference in taxable income from both methods for that period.
The net effect of these changes is an increase in tax at lower incomes and a decrease in tax for higher incomes. Social security has increased for higher incomes.
India enacted Finance Act (No. 2) for 2024 on August 16, 2024. Among the many tax provisions passed in the Finance Act, two are relevant to the taxation of employees. The standard deduction has increased from INR 50,000 to INR 75,000. The tax brackets have been revised while the tax rates are unchanged. The Finance Act is effective retroactively until April 1, 2024. The net effect of these changes is a tax decrease. Social security (Employee Provident Fund) contributions are unchanged.