Shareworks Global Intelligence Newsletter March 2020

March 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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Country Updates

Cyprus: Increase in National Health System Contribution Rates

Contributions to the National Health Insurance System (“NHS”) will be increased from March 1, 2020. Currently, NHS contributions are 1.7% for employees and 1.85% for employers, capped at a salary of EUR 180,000. Starting March 1, 2020 these contributions will increase to 2.65% for employees and 2.90% for employers, but the cap will remain at EUR 180,000 of annual income. The other social contributions due for employees and employers will not change. Changes to the social insurance contributions will be as follows:

For employees

Taxable Annual Base (EUR)

Social Insurance (%)

National Health System (%)

Total Rate (%)

0 - 54,864

8.3

2.65

10.95

54, 864.01 - 180,000

 

2.65

2.65

180,000.01 - up

   

0

For employers

This information has been provided by our collaborating law firm in Cyprus, Andreas Neocleous & Co LLC (contact: Efrosini Monou at efrosini.monou@neocleous.com)

 

Ghana: Income Tax Amendments

The Income Tax (Amendment) Act 2019 has been passed, and the personal income tax bands have been revised as follows effective January 1, 2020:

Revised Annual chargeable Income (GHS)

Rate (%)

0 - 3,828

0

3,828.01 - 5,028

5

5,028.01 - 6,468

10

6,468.01 - 42,468

17.5

42,468.01 - 240,000

25

240,000 - up

30

This information has been provided by our collaborating law firm in Ghana, Bentsi-Enchill, Letsa & Ankomah (contact: Angela Gyasi at aagyasi@belonline.org)

 

India: Budget for 2020/2021

On February 1, 2020, the Union Budget for the next financial year starting on April 1, 2020, was delivered in India. 

In an effort to reduce compliance and administrative burdens, the Budget introduces a new personal income tax regime with lower tax rates that taxpayers may elect in lieu of the current regime if they forego certain deductions and exemptions. The table below compares the existing and the optional new rates.

Annual Taxable Income (INR)

Existing Tax Rates (%)

Optional New Rates (%)

0 - 250,000

0

0

250,000.01 - 500,000

5

5

500,000.01 - 750,000

20

10

750,000.01 - 1,000,000

20

15

1,000,000.01 - 1,250,000

30

20

1,250,000.01 - 1,500,000

30

25

1,500,000 - up 

30

30

Those taxpayers electing to use the new tax rate structure are required to communicate their election to their employer who will adjust the withholding rates accordingly. However, employees opting for this new regime cannot claim, among other things, allowances for housing, business leave, travel, meal vouchers, or the standard deduction of INR 50,000. 

This information has been provided by our collaborating law firm in India, Little & Co. (contact: Rajni Divkar at rajni.divkar@littlecompany.com)

 

Ireland: Change to Universal Social Charge Ceiling

Following an increase in the national minimum wage, the government amended the thresholds for the Universal Social Charge (“USC”) thresholds.

The revised USC thresholds are as follows, effective January 1, 2020:

Aggregate Income (EUR)

Rate of USC (%)

0 - 12,012

0.5

12,012.01 - 20,484

2

20,484.01 - 70,044

4.5

70,044.01 - up

8

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

 

Macedonia: Progressive Taxation Suspended Until 2023

Pursuant to recent amendments to the individual income tax law, the progressive taxation of individual income deriving from, among others, employment, independent activities, capital, and other income will be suspended temporarily. Effective from January 1, 2020 until December 31, 2022, individual income tax will be levied at the flat rate of 10%. 

This information has been provided by our collaborating law firm in Macedonia, Schoenherr (contact: Andrea Radonjanin at a.radonjanin@schoenherr.mk)

 

Maldives: Introduction of Personal Income Tax

The Income Tax Act introducing personal income tax in the Maldives, became effective as of January 1, 2020. 

Tax residents (excluding temporary residents) of the Maldives are taxable on their worldwide income, whereas non-residents are taxable solely on income derived from the Maldives. The new progressive tax bands and rates are as follows:

Taxable income per year (MVR)

Tax rate (%)

0 - 720,000

0

720,001 - 1,200,000

5.5

1,200,001 - 1,800,000

8

1,800,001 - 2,400,000

12

2,400,001 - up

15

Employers will be required to withhold personal income tax monthly on their employees' salaries on a pay-as-you-go basis, as detailed in the below table.

Remuneration subject to withholding per month (MVR)

Tax rate (%)

0 - 60,000

0

60,001 - 100,000

5.5

100,001 - 150,000

8

150,001 - 200,000

12

200,001 - up

15

Previously, individuals were not subject to personal income tax and were taxed only on profits derived from carrying on business activities. 

This information has been provided by our collaborating law firm in Maldives, Shah, Hussain & Co. (contact: Dheena Hussain at dheena@shclawyers.com)

 

Upcoming Filing and Reporting

Ireland: Equity Reporting

March 31, 2020
Affects: Local Company

Companies are required to report to the Irish Revenue on Form RSS1 (filed electronically) by March 31 any unapproved options and other rights to acquire shares that were granted, assigned, released and/or exercised by employees and/or directors during the preceding year.

Separate reporting requirements apply for approved save-as-you-earn plans, approved profit-sharing plans and employee share ownership trusts. The forms are available for download on the Irish Revenue website.

Failure to comply with these mandatory filing obligations will result in a penalty and, in the case of any approved schemes, may result in the withdrawal of Revenue approval for approved schemes.

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

 

Japan: Equity Reporting

March 31, 2020
Affects: Local Company

The deadline for annual reporting in respect of offshore assets for Japanese employers is approaching. Japanese companies that are majority owned by non-Japanese companies and Japanese branch offices of non-Japanese companies must file an annual report with the tax authorities, using Form 9(3), if employees have had cash or equity awards that vested or were exercised in the previous tax year.

The due date for filing is March 31 following the end of the tax year. Form 9(3) is available on the website of theJapanese tax authority.

This information has been provided by our collaborating law firm in Japan, Anderson Mori & Tomotsune (contact: Kunihiko Morishita at kunihiko.morishita@amt-law.com)

 

Saudi Arabia: Quarterly Equity Reporting

April 10, 2020
Affects: Solium - Barcelona

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)

 

India: Employer Tax Filings

April 15, 2020
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)

 

India: Tax Deducted at Source (TDS) certificate

May 31, 2020
Affects: Local Company

Employers in India must issue a Tax Deducted at Source (TDS) certificate on Form 16 to employees by May 31 following the end of the financial year. Form 16 sets out any tax withheld by the employer in the previous year, including under any equity plans.

In addition, Form 12BA must also be issued to employees by April 30 of the assessment year. 

This information has been provided by our collaborating law firm in India, Little & Co. (contact: Rajni Divkar at rajni.divkar@littlecompany.com)

 

Upcoming Events

GEO's Global Share Plan Basics Bootcamp

April 20, 2020

The bootcamp will be organized in the Renaissance Nashville Hotel in Nashville, Tennessee. It is designed to be either a standalone one-day program or for those wishing to also attend GEO’s 21st Annual Conference, GEO offers a combined program option.

Registration is now open.

More info: https://www.globalequity.org/geo/Nashville2020-Bootcamp

 

GEO Nashville 2020

April 21-23, 2020

The registration is now open for GEO's 21st Annual Conference in Nashville, Tennessee, at the Renaissance Nashville Hotel.

Find out more and register here.

The Shareworks Team will be there!

We will be presenting:

  • The Five W's of an Equity Program, by Carlene Perry. This panel of experts is here to help you distil an equity program down to its component parts by looking at the 5Ws of an equity program: Who? What? When? Where? Why?.

Darren Smith will also be attending this event. Get in contact!

More info: https://www.globalequity.org/geo/Nashville2020

 

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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

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