Welcome to the Share | Updates – March 2026 edition!
This month, we are sharing legal and tax updates from Chile, Guernsey, Paraguay and Rwanda.
CMS Employee Equity 101 series – We’re proud to share a wonderful information resource for any employee share plan professional.
Chile
Pension reform (employer social security contributions)
Under the pension reform approved in 2025, employers are required to fund an additional pension contribution for employees.
The contribution will be phased in gradually, starting with an additional 1% employer contribution from August 2025 and increasing incrementally until reaching a maximum of 8.5% of pensionable salary by 2033.
Employers should factor in these increasing social security costs over the transition period.
Guernsey
Taxation Point Changes
Major changes have been implemented in Guernsey, changing the taxation point for Awards, from grant.
Income tax and social security are deferred until exercise or vesting, provided this occurs within 7 years from grant and is based on the market value of the shares as at the time of grant.
If the Participant dies, ceases employment or leaves Guernsey, the taxation point would be accelerated.
Paraguay
New Securities Laws Regime
Paraguay’s new securities regime under Law 7572/2025 was introduced in January 2026 and requires registration for any “public offer”.
There are no specific exemptions for employee share plans, so equity communications must be carefully structured to avoid constituting a public offering.
Rwanda
Revised Social Security Rates
From 1 January 2027, the combined employee and employer social security rate will increase to 14% (split 50/50 between employee and employer).
CMS Employee Equity 101 series
Tax Withholding, EMI..and more
We are proud to share that our colleagues from CMS initiated the Employee Equity 101 series – where you’ll discover common approaches and practical examples, explore changes and demystify concepts on different topics like:
- Tax withholding in share plans
- The 2026 EMI changes
- ..more interesting topics are on the line including EBTs and nominee arrangements plus internationally mobile employees
It takes experience and a deep understanding to make things look easy. The CMS Employee Incentives team is definitely in a great position to help clarify complex issues and provide a pragmatic approach.
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