To borrow from Nathaniel Hawthorne, taxes are always rising and falling. The fourth quarter of 2025 was no exception. Across multiple regions, governments introduced reforms aimed at boosting purchasing power, modernizing tax systems, or increasing social contributions.

 In this blog, we highlight notable individual income tax changes that took effect at the end of 2025 and into early 2026 — and what they may mean for mobility programs. 

What We’re Seeing This Quarter FOR TAX

What Are AIRINC Data Points?

AIRINC’s quarterly Data Points provide updates on global mobility trends across housing, goods and services, exchange rates, and tax. These insights are drawn from our ongoing global research and are designed to help mobility teams stay informed and make confident, data-driven decisions.

After recently covering housing trends, this quarter we turn our focus to tax.

What Do These Tax Changes Mean for Expatriates?

Individual tax changes can directly influence:

• Take-home pay for assignees

• Hypothetical tax calculations under tax equalization policies

• Net-to-gross projections

• Social security liabilities

• Overall assignment cost estimates

This quarter’s updates show a clear pattern. Several countries reduced tax burdens at lower income levels, while others increased top marginal rates or expanded social security contributions. Structural reforms in places like Côte d’Ivoire and Nigeria also signal broader modernization efforts that mobility teams should monitor closely.

Understanding not just what changed, but how those changes affect expatriates, is essential for accurate budgeting and program management.

Country Tax Update - Changes in Expatriate Tax

Aruba, 2025

A tax cut has been implemented for 2025, targeting tax relief for lower incomes and increasing purchasing power. The 10% rate for the first tax bracket (income up to AWG 34,930) has been reduced to zero. The net effect is a reduction in tax for all taxpayers that is capped at approximately AWG 3,500.

Bangladesh, 2025

Bangladesh has implemented tax changes, administered by the National Board of Revenue, for the 2025/2026 tax year (beginning July 1). The salary exemption has been revised: it will now be equal to the lesser of one third of employment income or BDT 500,000. The tax rates have been revised, with adjusted brackets and the top marginal tax rate increasing from 25% to 30%. The net effect varies by income level, with tax for lower incomes decreasing, and tax for higher incomes increasing. There are no mandatory social security contributions in Bangladesh.

Bulgaria, 2026

Bulgaria has adopted the euro, effective as of January 1, 2026. The conversion rate is BGN 1.95583 to EUR 1. All deductions and social security maximums have been restated in euros. The income tax rate is unchanged at a 10% flat tax rate.

Côte d’Ivoire, 2025

Major tax reform has been enacted in Côte d'Ivoire. The national government has merged several taxes on income (General Tax, National Contribution Tax, and Tax on Wages) into one progressive tax structure with a top marginal tax rate reduced from 37.5% to 32%. The standard 20% deduction and presumptive deduction have been abolished. The coefficient system has been replaced with dependent credits that vary by family size. The net effect is a reduction in tax for most taxpayers. Social security is unchanged.

Equatorial Guinea, 2025

The tax rate schedule has been adjusted, with the top marginal rate reduced from 35% to 25%. The net effect is a decrease in income tax and a small increase in social security for all taxpayers, as the Worker Protection Fund is calculated off of after-tax income.

Iceland, 2025

There have been adjustments to the State Tax Credit, Elderly Construction Fund tax, National Broadcasting Service tax, and the Child Benefit. The national tax rate brackets have been inflation-indexed with a top marginal tax rate of 31.35%. The flat rate state tax has increased from 14.93% to 14.94%. Social security is unchanged. The net effect is a decrease in income tax for most taxpayers.

Jersey, 2025

Jersey is phasing in a plan for married taxpayers to be taxed independently from a system that allowed tax filings jointly. Independent taxation for married couples will be mandatory as of 2026. The allowable annual maximum deduction for mortgage interest is also being phased out and will no longer be deductible from the beginning of 2026. For 2025, the mortgage deduction maximum has decreased from GBP 3,000 to GBP 1,500. The personal exemptions for taxpayers and dependent children have increased. The maximum for the Long-Term Care contribution has increased. The maximum for social security has increased. The net effect of these changes is a small increase in social security for higher incomes. The impact on tax varies by income level and family size.

Nigeria, 2026

Nigeria has enacted significant tax reform measures effective January 1, 2026. The Consolidated Relief Allowance (CRA) has been repealed and replaced by a new deduction for qualifying rents paid on a primary residence. The rent deduction is equal to 20% of rents paid, and the deduction is capped at NGN 500,000. The 1% minimum tax has been repealed. New tax brackets have been implemented with a top marginal rate increasing from 24% to 25%. Social security contribution rates are unchanged. The net effect of this tax reform varies by income level: generally, lower tax at lower incomes, and higher tax at middle and high incomes.

Rwanda, 2025

Normative deductions have been eliminated and the rates for social security have increased. The tax rate schedule is unchanged. The net effect is an increase in tax and social security for all taxpayers. The government has introduced higher contribution rates to the pension scheme that will be implemented over a 5-year period. For 2025, the total combined employee contribution rate increases from 10.8% to 14.3% of wages without limitation. The combined employer rate increases from 12.8% to 15.8% of wages without limitation. These rates are scheduled to gradually increase over the next 5 years, resulting in an additional 4% for both employees and employers as of January 1, 2030.

Syria, 2025

There are no changes to Syria individual taxation for tax year 2025. The new Syrian government has proposed tax reform for 2026. The proposals include abolishing the 'schedular tax framework' (where three different types of income are taxed separately) and replacing it with a framework that applies a single tax calculation to the combined taxable income. A progressive individual tax system with a top marginal tax rate of 8% is proposed. Deductions for medical expenses, education, rent, and mortgage interest are being considered. 

Frequently Asked Questions About Tax Changes for Expatriates

Do individual tax rate changes affect tax equalization?

Yes. Changes to marginal tax rates, deductions, or exemptions can impact hypothetical tax calculations and year-end tax equalization settlements, potentially increasing or decreasing employer costs.

How do social security increases impact international assignments?

Higher employee or employer contribution rates can affect net pay, assignment cost projections, and total compensation budgeting, particularly in countries without contribution caps.

Why should mobility teams monitor quarterly tax updates?

While many tax reforms align with annual budgets, mid-year changes and structural reforms can occur at any time. Regular monitoring helps mobility teams avoid unexpected cost variances and maintain accurate assignment projections.

Do tax changes affect all expatriates equally?

No. The impact varies by income level, family size, policy structure, and whether the employee is tax equalized, tax protected, or localized.

Conclusion

From targeted tax relief in Aruba to structural reform in Nigeria and Côte d’Ivoire, the fourth quarter reflects continued movement in individual taxation worldwide. While some jurisdictions are easing burdens, others are broadening tax bases or increasing social contributions.

For expatriates, shifts in marginal rates, deductions, and contribution ceilings can materially affect net pay and assignment costs. For mobility teams, proactive monitoring helps avoid unexpected variances and ensures tax equalization calculations remain accurate.

AIRINC is already monitoring and incorporating 2026 changes into our tax logic. Stay tuned for the Q1 2026 Data Points for further updates.