22 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 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
There is a 5% deduction on personal income tax if tax is reported and paid by 31 May 2020.
This deduction is a very helpful benefit to individuals who are due to pay their taxes whilst trying to reserve cash. This deadline is very imminent, so those wishing to benefit from this deduction should be prepared.
New Zealand - Deferral of tax filing
The Inland Revenue have provided updated guidance for businesses, stating if a business is unable to pay taxes on time businesses can get in touch when they can to have any penalties and interest written off.
This understanding by the Inland Revenue that companies not only may be struggling to pay taxes on time, but may also be struggling to reach out and discuss this, will be a great relief to New Zealand businesses. It is not yet clear whether there will be a cut off date for doing so, though we expect this will be the case. Companies should therefore continue to make filings if possible, and explain this as soon as feasible if they cannot to ensure they are caught by this updated guidance.
Portugal - Furlough support
Employees whose children have been affected by school closures can be absent from work and claim an allowance corresponding to two-thirds of their basic remuneration. The minimum guaranteed monthly remuneration is EUR635 and the maximum is capped at EUR1,905. The employer must pay 50% of this remuneration. For public sector employees, the employer must pay 100% of this remuneration.
As schools have closed globally this has put a lot of pressure on parents trying to work from home whilst home-schooling and taking care of their children. Allowing parents the flexibility to take this time away from work to focus on their children during this uncertain time, without worrying about not receiving pay, will hopefully be a weight lifted for parents. Companies should think, however, whether these employees would still be eligible for any employee share plan whilst taking this period of leave.
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.