Welcome to the Share | Updates – June 2026 edition!
This month, we are sharing tax and legal updates from Argentina, Botswana, Denmark, Pakistan, and South Africa.
CMS Employee Equity 101: Guide for Founders and Employees
Recent Changes
Argentina
Social Security Caps
The social security caps for employees based in Argentina change on a monthly basis. SR is routinely updated to reflect the most recent caps.
Employee Social Security is payable up to a flat rate of 17%, withheld by the Local Company (capped).
The cap is approximately ARS 4,414,652.38 per month (for June 2026).
Botswana
Income Tax: Potential Changes for 2026/27
Botswana's 2026/27 budget, presented in February 2026, proposes raising the top personal income tax rate by 2.5% for earners above P400,001 annually. The new 27.5% marginal rate would apply to both resident and non-resident individuals.
Denmark
Upcoming Pay Transparency Requirements
The Pay Transparency requirements are expected to be implemented in Denmark by January 2027.
Under the new EU Pay Transparency Directive, employees are entitled to equal pay for equal work or work of equal value.
Share-based incentive arrangements are expected to be covered by these rules and must therefore be considered as part of the Company’s overall compliance framework, including in relation to reporting and pay transparency requirements.
Pakistan
Surcharge on High-Income Earners Is Abolished
Pakistan's Federal Budget 2026-27 brings relief to high-income salaried individuals, with the government abolishing the 9% surcharge previously levied on annual taxable income exceeding Rs10 million. It takes effect from July 1, 2026.
South Africa
Exchange Controls
The SARB issued exchange control circulars on 8 April 2026, increasing the annual Single Discretionary Allowance (SDA) for resident individuals aged 18 and older from ZAR 1 million to ZAR 2 million.
For transfers within the annual SDA, the process is generally uncomplicated. In most cases, residents simply need to provide proof of identity, banking details, and the stated purpose of the transfer.
The Foreign Investment Allowance permits transfers of up to ZAR 10 million per person per year, but requires a SARS Approval for International Transfer.
CMS Employee Equity 101 Series
Guide for Founders and Employees
Our colleagues from CMS explore why founder equity and employee equity look different even when the underlying asset is the same.
They cover what ‘founder shares’ really means, why employees joining later need structured incentive arrangements, and the key mechanisms (including EMI options, CSOP options and growth shares) used to manage the tax and commercial position.
You can subscribe to these insights here.