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

Tapestry Newsletters

7 May 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 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: 


Bulgaria – Tax Reduction
The deadline for filing the annual individual income tax return (and payment of income taxes) has been deferred to 30 June 2020. There is a 5% deduction available if tax is reported and paid by 31 May 2020.
Tapestry Comment:
This deduction is a helpful incentive to those who can still make their filing by 31 May 2020, but may have taken advantage of the deadline postponement. 


Egypt – Stamp Duty
Stamp duty has been reduced to 0.125% for non-residents and 0.05% for residents.
Tapestry Comment:
A reduction in stamp duty will be welcomed by those looking to sell or buy listed securities on the EGX. This is likely to be a temporary reduction. 


Guatemala – Securities regulator
The securities regulator in Guatemala has been closed due to COVID-19. The regulator’s closure is causing delays for incentive plan filings (which are due quarterly). 
Tapestry Comment:
It is unclear whether these filings will then be requested once the regulator is fully operational again, so companies should ensure they can easily access the required information in the event that a backlog of filings will be required. 


Hungary – Furlough support
Certain employees who agree to reduce their contracted working hours by 50-70% are eligible for a monthly allowance. This monthly allowance can be paid for a maximum of 3 months and is calculated on a proportion of the salary lost due to the reduced hours (though it cannot exceed double the mandatory minimum wage). 
Tapestry Comment:
This is a helpful government scheme, allowing employees to reduce their working hours, without having a larger financial impact on the employee. Companies must agree these reduced working hours with the employees, so, if companies are considering this support these discussions should take place as soon as possible. 


Philippines – Securities regulator
The securities regulator in the Philippines (SEC) is closed until further notice. This is causing delays for incentive plan filings. Officers are working remotely and contact details, and other information, can be found on the dedicated COVID-19 page
Tapestry Comment:
Whilst the SEC office remains closed, it is helpful that alternative contact details have been provided. We hope this will help reduce the impact of delays on securities filings. 

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 ‘Spring into Spring’ webinars to do a deep dive into some of the topics which we think may be helpful to you at this time. 

Team Tapestry

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