Shareworks Global Intelligence Newsletter November 2020

November 1, 2020 Shareworks Marketing

Icon of a globe with a network connecting countries together with the wording "Global Intelligence Newsletter" underneath.

Shareworks Global Intelligence newsletter provides an overview of recent changes affecting employee share plans globally. 

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We have made some exciting changes to our monthly Shareworks Global Intelligence newsletter. Starting with this month’s newsletter, you will receive updates for all countries, regardless of your subscription.This will help you stay ahead globally!

We also want your feedback! To ensure we are continuously enhancing our products and solutions, to better help you access the information you need, we are planning to set up a few interviews with clients and our user experience (UX) team. If you would like to be a participant in our UX survey, please send us a note and we can coordinate a time that works for you. 

Please find below the Shareworks Global Intelligence overview of certain changes affecting employee share plans globally. This issue also highlights certain upcoming global filing and reporting requirements (for the parent company or local company). 

As always, please feel free to contact us if you need further assistance.

 

Country Updates

Australia: Budget 2020 Personal Income Tax Measures Proposal 

On October 6, 2020, the Australian Federal Government presented the Budget for tax year 2020/2021.

The Budget proposes to bring forward the ‘Stage 2’ personal income tax cuts that were previously planned to take effect from July 1, 2022.

Subject to approval, with retrospective effect from July 1, 2020, the upper threshold for the 19% tax bracket will increase from AUD 37,000 to AUD 45,000, and the 32.5% tax bracket will be applicable to income from AUD 45,001 to AUD 120,000 (increased from AUD 90,000).

This information has been provided by our collaborating law firm in Australia, Minter Ellison(contact: Hamish Wallace at hamish.wallace@minterellison.com)

 

Finland: Budget 2021 Tax Measures 

The government presented Budget 2021 in Finland on October 5, 2020. As per the proposal, effective for 2021, the individual income tax bands will increase as follows:

Taxable income (EUR) Tax rate
0 - 18,600 0%
18,600.01 - 27,900 6%
27,900.01 - 45,900 17.25%
45,900.01 - 80,500 21.25%
80,500.01 - up 31.25%

This information has been provided by our collaborating law firm in Finland, Krogerus (contact: Antti Lehtimaja at antti.lehtimaja@krogerus.com)

 

Greece: Budget 2021 Tax Measures Proposal 

The government presented Budget 2021 in Greece. Among others, the following proposed tax measures are included in several bills tabled during October:

  • For tax year 2021, a 3% decrease of the social security rate for private sector employees and employers related to the contributions for the unemployment scheme; the specifics of the reduction have not yet been released; and
  • Suspension of the up to 10% special solidarity contribution, if certain conditions are fulfilled, as follows:
    • with a retrospective effect for tax year 2020, business income, investment and real estate income and capital gains will be exempt from special solidarity contribution; and
    • for tax year 2021, income from private sector salaries will be exempt from special solidarity contribution.

This information has been provided by our collaborating law firm in Greece, Kyriakides Georgopoulos Law Firm (contact: Loukas Panetsos at l.panetsos@kglawfirm.gr)

 

Ireland: Budget 2021 Tax Measures 

The Irish government announced Budget 2021 on October 13, 2020. As per the proposed Budget, the ceiling of the 2% band of the Universal Social Charge will increase from EUR 20,484 to EUR 20,687.

This information has been provided by our collaborating law firm in Ireland, McCann FitzGerald, Solicitors (contact: Eleanor Cunningham at eleanor.cunningham@mccannfitzgerald.com)

 

Russia: Draft Law on 2021 Personal Income Tax Rate Proposal 

On September 17, 2020, the Government of Russia submitted a draft law increasing the personal income tax rate and establishing a progressive scale of taxation for individuals in Russia. 

Effective from 2021, income of Russian tax resident individuals (with certain exceptions) will be taxed at a rate of 13%, up to the threshold of RUB 5,000,000 (approx. EUR 55,000), and income exceeding the threshold will be taxed at a 15% rate. 

This information has been provided by our collaborating law firm in Russia, ALRUD (contact: Olga Pimanova at opimanova@alrud.com)

 

Zambia: Budget 2021 Tax Measures

The government presented Budget 2021 in Zambia on September 25, 2020. As per the proposal, the individual income tax bands will increase as follows effective as of 2021:

Monthly income (ZMW) Tax rate
0 - 3,300 0%
3,301 - 4,100 25%
4,101 - 6,200 30%
6,201 - up 37.5%

This information has been provided by our collaborating law firm in Zambia, Corpus Legal Practitioners (contact: Jackie Jhala at jjhala@corpus.co.zm)

 

Upcoming Filing and Reporting

China: SAFE Quarterly Reports 

January 3, 2021
Affects: Local Company

Companies that have obtained SAFE approval for their equity plans in China are required to file quarterly reports with their local SAFE office within three business days following the end of the relevant quarter.

This information has been provided by our collaborating law firm in China, Martin Hu & Partners (MHP) (contact: Kevin Xu at kevin.xu@mhplawyer.com)

 

Saudi Arabia: Quarterly Equity Reporting 

January 10, 2021
Affects: Parent Company

Companies offering share plans to employees in Saudi Arabia under the revised securities law exemption must notify the Capital Market Authority (“CMA”) within 10 days after the end of the quarter following grant disclosing the total number and value of all offers made to employees during the preceding quarter. This notification can be made by an authorised person or by the company. Plan amendments or changes may also require additional filings with the CMA.

This information has been provided by our collaborating law firm in Saudi Arabia, Tamimi (contact: Grahame Nelson at g.nelson@tamimi.com)

 

Philippines: Year End Reporting Requirements 

January 10, 2021
Affects: Parent Company

Companies that have obtained a formal exemption from the Philippine Securities and Exchange Commission (“SEC”) are required to file an annual report with the SEC, providing relevant details of any equity awards granted, issued, vested, exercised or purchased, as applicable, in the preceding calendar year, along with a list of any new employees who became eligible to acquire shares under the plan. The due date for filing is January 10 following the end of the preceding calendar year. 

This information has been provided by our collaborating law firm in Philippines, Quasha Ancheta Pena & Nolasco (contact: Joel Raymond Ayson at jrra@quasha-interlaw.com)

 

India: Employer Tax Filings 

January 15, 2021
Affects: Local Company

Indian employers are required to file Form 24Q with the Indian tax authorities on a quarterly basis. These quarterly returns report information on employment income paid to employees (including from share-settled awards) as well as taxes withheld.

The quarterly returns must be submitted by:

  • May 31 for the quarter ending March 31
  • July 31 for the quarter ending June 30
  • October 31 for the quarter ending September 30
  • January 31 for the quarter ending December 31
This information has been provided by our collaborating law firm in India, Little & Co. (contact: Rajni Divkar at rajni.divkar@littlecompany.com)

 

Thailand: Thai SEC Filing 

January 15, 2021
Affects: Parent Company

The annual reporting deadline for companies that grant stock options to employees in Thailand is approaching. Companies must report any exercises of those options to the Thai SEC by January 15 following the year in which they were exercised. 

This information has been provided by our collaborating law firm in Thailand, International Legal Counsellors Thailand Limited(contact: Supachai Arunthamsakul at supachaia@ilct.co.th)

 

United States of America: Annual Reporting Deadline for Qualified Plans 

January 31, 2021
Affects: Local Company

The annual reporting deadline for companies that grant tax qualified incentive stock options (ISOs) or shares to an employee under a tax-qualified employee stock purchase plan (ESPP) in the US is approaching. Companies that granted such tax qualified awards during the year must file annual information statements, namely Form 3921 for ISOs and Form 3922 for a tax-qualified ESPP. The forms provide details in respect of any employee or former employee who exercised an ISO, or to whom shares were transferred under a tax qualified ESPP in the relevant tax year.

Information statements must be provided to employees by January 31 (or the next business day if January 31 falls on a weekend). In addition, the statements have to be filed with the Internal Revenue Service by March 31 (if filed electronically), or by the last day of February (if filed in paper). Forms 3921 and 3922 as well as instructions on how to complete these forms are available on the IRS website.

This information has been provided by our collaborating law firm in United States of America, Pillsbury Winthrop Shaw Pittman(contact: Jessica Lutrin at jessica.lutrin@pillsburylaw.com)
 

Taiwan: Tax Withholding Statement 

January 31, 2021
Affects: Local Company

Taiwan employers must submit a non-withholding statement to the tax authorities by January 31 that includes the name, address, national ID number of each employee with awards or shares that vested, were exercised or purchased under an employee equity plan in the previous calendar year. In addition, the Taiwan employer must also issue a non-withholding statement to employees by February 10.

This information has been provided by our collaborating law firm in Taiwan, Huang & Partners (contact: Lawrence Lee at lawrence_lee@huangandpartners.com.tw)
 

China: Request for Outbound Remittance Quota 

30 days before the SAFE renewal date.
Affects: Local Company

The local company may need to apply for approval for an annual outbound remittance quota. If an annual SAFE renewal filing is otherwise required by the local SAFE, the local company should include the request for the outbound remittance quota for the following year together in the annual filing (assuming that the quota for the year has not yet been used up). If an annual filing is not otherwise required by the local SAFE (such as in Beijing), the local company will need to apply to renew its outbound remittance quota before the validity period expires or the approved quota is used up, whichever is earlier. The application for the renewal of the annual outbound remittance quota should be done early to allow time for processing and approval of a new quota and to avoid a disruption in outbound remittances under the affected plans.

This information has been provided by our collaborating law firm in China, Martin Hu & Partners (MHP) (contact: Kevin Xu at kevin.xu@mhplawyer.com)
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Shareworks, Shareworks Global Intelligence and all product marks and logos are trademarks of Shareworks.THIS INFORMATION IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s) as Shareworks does not provide legal or tax advice and the information is not tailored to the specific situations of your company or your employees. The information is sourced from third parties, may not be current and is subject to change without notice. Shareworks makes no representations or warranties concerning the accuracy, completeness or timeliness of the information and is not implying an affiliation, sponsorship or endorsement with/of any third parties (including those hosting and presenting at third-party events) or views expressed by such parties. Any views expressed are solely those of the third-party source. Shareworks shall have no liability arising out of, or in connection with, the information, including any loss caused by use of, or reliance on, the information. All information made available by Shareworks is subject to the terms of the written agreement entered into between Shareworks and your company.
CRC 3324073 (11/20)