COVID-19: Tapestry’s Weekly Update on Global Developments

16 April 2020

We hope you and your families are staying well. 

As promised in our previous newsletter, each week we will be sending a COVID-19 Catch Up up of key global developments on incentives to help keep you as up-to-date as possible, and it’s that time again… 

COVID-19 Catch Up: 


ArgentinaSocial security
Social security payment deadlines for March and April 2020 have been deferred for certain employers. Certain employers can benefit from a 95% reduction in social security charges.
Tapestry comment
A 95% reduction in social security would be a great help to companies, particularly whilst retaining cash is more vital than ever. As this will only be available for a set time, companies should look into this as soon as possible to see if they meet the criteria to benefit from this reduction.
 


Canada – Furlough support

The Canada Emergency Wage Subsidy has been introduced for eligible employers with revenue declines in excess of 30%. Payments to employees between 15 March 2020 and 19 June 2020 (inclusive) are eligible to receive a 75% subsidy on the first $58,700. 
Tapestry comment
This is helpful to encourage employers to keep employees on the payroll whilst the COVID-19 crisis continues. However, the name of any employer applying for subsidies may be made public. Companies that are sensitive to publication this should consider applying carefully.


Egypt – Stamp Duty
Stamp duty has been reduced to 0.125% for non-residents and 0.05% for residents.
Tapestry comment
This will be a welcome reduction for those who are considering selling shares during this time but are hesitant due to the stamp duty and taxes payable as a result.


Germany – Shareholder meetings
Shareholder meetings can be held virtually and can be held at any time until the end of the business year rather than just in the first eight months.
Tapestry comment
The issue of holding shareholder meetings has been at the forefront of discussions during this time. This provides flexibility and ensures firms can continue to navigate this crisis as best as they can. 


Malaysia – Furlough support
The government will subsidise employers MYR600 per employee up to 100 employees who earn less than MYR4000 a month if there has been a reduction in revenue in the last 3 months by at least 50%. 
Tapestry comment
This is a huge help to allow employees to retain their jobs during this epidemic. This reduction must be evidenced by bank statements, however, and the subsidy is only available (at present) between April and June – so companies must act fast to apply for and receive this assistance. 

The Tapestry Team are always available if you would like to speak to us about any of your countries and operating your share plan globally during this time so please do get in touch.

We are also running a series of webinars on key issues affecting global share plans. We will also be launching a ‘Spring into Spring’ series of webinars shortly to do a deep dive into some of the topics which we think may be helpful to you at this time.

Lorna Parkin and Sally Blanchflower


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