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.
Country Updates
Angola: Updated Income Tax Bands
Effective from September 1, 2020, the individual income tax rates and bands applicable to monthly employment income in Angola has been increased. There is a fixed portion of tax payable for each bands, as described below.
- On income from AOA 1,000,001 up to 1,500,000, tax payable is a fixed portion of AOA 187,250 plus 21% on the excess of AOA 1,000,000
- On income from AOA 1,500,001 up to 2,000,000, tax payable is a fixed portion of AOA 292,000 plus 22% on the excess of AOA 1,500,000
- On income from AOA 2,000,001 up to 2,500,000, tax payable is a fixed portion of AOA 402,250 plus 23% on the excess of AOA 2,000,000
- On income from AOA 2,500,001 up to 5,000,000, tax payable is a fixed portion of AOA 517,250 plus 24% on the excess of AOA 2,500,000
- On income from AOA 5,000,001 up to 10,000,000, tax payable is a fixed portion of AOA 1,117,250 plus 24.5% on the excess of AOA 5,000,000
- On income from AOA 10,000,001, tax payable is a fixed portion of AOA 2,342,250, plus 25% on the excess of AOA 10,000,000
This information has been provided by our collaborating law firm in Angola, AVM Advogados (contact: Antonio Vicente Marques at avm@avm-advogados.com)
Guernsey: Social Contribution Caps Updated for 2021
The social contribution threshold will increase effective from January 1, 2021, as detailed below.
|
|
Thresholds for 2020 |
Thresholds for 2021 |
|
Lower Earnings Limit (monthly, GBP) |
624 |
641 |
|
Upper Earnings Limit (monthly, GBP) |
12,480 |
12,805 |
The same thresholds are applicable for employee and employer contributions. The rate remain unchanged at 6.6% for both employees and employers.
This information has been provided by our collaborating law firm in Guernsey, Carey Olsen (contact: Natasha Kapp at natasha.kapp@careyolsen.com)
Myanmar: Tax Payment Timeline Extended
As per the 62/2020 Notification issued on June 10, 2020 by the Ministry of Planning, Finance and Industry, the deadline for remitting taxes withheld on employee earnings by the employer has been extended from 7 days to 15 days after deduction.
The change applies retrospectively from October 1, 2019.
This information has been provided by our collaborating law firm in Myanmar, VDB Loi (contact: Ngwe Lin Myat Chit at ngwe.lin@vdb-loi.com)
Zimbabwe: Changes to Employment Income Tax Table
With effect from August 1, 2020, the following annual tax table is applicable on employment income earned in Zimbabwean dollars. The tax rates remain unchanged.
|
Monthly income (ZWL) |
Tax rate |
|
0 - 25,000 |
0% |
|
25,001 - 75,000 |
20% |
|
75,001 - 150,000 |
25% |
|
150,001 - 300,000 |
30% |
|
300,001 - 500,000 |
35% |
|
500,001 - up |
40% |
This information has been provided by our collaborating law firm in Zimbabwe, Atherstone & Cook (contact: Takura Gumbo at tgumbo@praetor.co.zw)
Upcoming Filing and Reporting
India: Annual Report
September 30, 2020
Affects: Local Company
Indian employers relying on the terms of the General Permission enacted by the Reserve Bank of India (RBI) must file an annual report with the RBI providing details regarding the shares issued to residents of India, the number of employees who received the shares, the amount of funds remitted for the purchase of shares and amounts remitted on account of recharge arrangements, if any, during the previous tax year on a specified form. The report must be made by September 30 at the latest.
This information has been provided by our collaborating law firm in India, Little & Co. (contact: Rajni Divkar at rajni.divkar@littlecompany.com)
China: SAFE Quarterly Reports
October 3, 2020
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
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.
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
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
This information has been provided by our collaborating law firm in India, Little & Co. (contact: Rajni Divkar at rajni.divkar@littlecompany.com)
Upcoming Events
NASPP Conference & Exhibition 2020
September 1-10, 2020
The annual National Association of Stock Plan Professionals (NASPP) Conference & Exhibition goes virtual.
More info: https://conference.naspp.com/event/376df509-7b86-47ea-82eb-06d5178bf3a5/summary
Global Equity Organization's 21st Annual Conference
September 21 - October 30, 2020
GEO’s 21st Annual Conference is an all virtual event, running weekly from September 21 through October 30, 2020.
More info: https://www.globalequity.org/geo/Virtual2020
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