Shareworks Global Intelligence newsletter provides an overview of recent changes affecting employee share plans globally.
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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.
Denmark: Budget Bill 2021
Budget Bill 2021 has been presented in Denmark, including several tax measures.
As per the proposed Bill, effective from January 1, 2021, the higher capital gains tax rate of 42% applicable on capital gains and income deriving from tax deferred share-based remuneration will be increased to 45%.
Netherlands: Personal Income Tax Rate Reduction
Several measures have been presented as part of Tax Plan 2021 in the Netherlands.
As per the proposal, effective from January 1, 2021, the lower personal income tax rate, currently 37.35%, would be decreased to 37.1%. The lower income tax cap and the higher income tax rate would remain unchanged at EUR 68,507 and 49.5% respectively.
The change is yet to be approved by the legislator.
New Zealand: Higher Individual Tax Rate Proposal
On September 10, 2020 the majority party in the coalition government announced plans to increase the top personal marginal tax rate to 39% which would apply to taxpayers earning income of more than NZD 180,000 per year. The current top marginal rate is 33%, which applies to income exceeding NZD 70,000 per year.
This proposed change has not been approved at this time.
Ukraine: Minimum Statutory Monthly Salary Increased
Effective from September 1, 2020, the minimum statutory monthly salary in Ukraine has been increased from UAH 4,723 to UAH 5,000.
The employer social security contribution remains capped at 15 times the minimum statutory monthly salary, i.e. UAH 75,000.
Upcoming Filing and Reporting
Saudi Arabia: Quarterly Equity Reporting
October 10, 2020
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.
India: Employer Tax Filings
October 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
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.