Welcome to the Share | Updates – Summer 2026 edition!
This month, we are sharing tax and legal updates from Argentina, Botswana, Belgium, Bulgaria, Chile, and Luxembourg.
CMS Employee Equity 101:
- Selling a Company – What Happens to Employee Share Plans?
- Challenges and Opportunities of Granting Employee Equity to a Global Workforce
Come and talk to us at the ProShare Conference in London on September 23, details below.
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 4,586,623.75 per month for August 2026.
Botswana
Income Tax: Changes for 2026/27
Botswana's proposed increase to its top personal income tax rate is now law. The Botswana Income Tax Act, 2026 was passed on 29 June 2026 and took effect on 1 July 2026, introducing a new top marginal PAYE rate of 27.5% on annual taxable income exceeding BWP 400,000 (roughly BWP 33,333/month).
This replaces the previous top rate of 25%, and applies to individuals earning above BWP 400,000 per annum. All lower tax brackets remain unchanged.
Belgium
Court Reverses RSU Social Security Position
On 29 June 2026, Belgium's Supreme Court reversed the Antwerp Labour Court's 2023 ruling that RSUs granted by a foreign parent to Belgian employees fell outside social security scope.
The Court held that even where a parent company funds and administers the plan independently, a retention or engagement rationale can itself make the grant “consideration for work”, meaning the very justification many plans rely on to stay outside Belgian payroll may now bring them inside it. The case returns to the Brussels Labour Court for reassessment.
For a multinational granting RSUs to its Belgian employees, where RSUs classify as remuneration, Belgian social security is triggered (~25% employer / ~13.07% employee), with effects on holiday pay and severance.
Bulgaria
Social Security Insurance Caps
Bulgaria has increased its mandatory social security insurance thresholds under the 2026 State Social Security Budget Act, with the changes taking effect on 1 August 2026.
The maximum monthly insurance base (the ceiling above which no further social security contributions are due, regardless of actual earnings) has increased from EUR 2,111.64 to EUR 2,300 from 1 August 2026.
Chile
Pension Reform (Employer Social Security Contributions)
Background: Chile’s 2025 pension reform introduces a phased employer pension contribution, starting at 1% from August 2025 and rising gradually to 8.5% of pensionable salary by 2033.
From 1 August 2026, the additional employer pension contribution rises to 3.5% of taxable salary.
Luxembourg
New Start-up Incentive Regime
On 1 July 2026, the Luxembourg Government proposed new legislation to introduce a new tax regime for employee share options granted by innovative start-ups. If approved, the new legislation will be in force from 1 January 2027.
To qualify, the Company must be a taxable resident of Luxembourg or be a resident of another EEA Member State and operate through a permanent establishment in Luxembourg. The Company must also have been incorporated for less than 10 years, have fewer than 150 employees and have an annual turnover or total balance sheet of less than EUR 30m.
To be regarded as innovative, the Company must have at least two full-time equivalent employees and have R&D expenses representing at least 15% of operating expenses during at least one of the previous three financial years.
CMS Employee Equity 101 Series
Selling a Company – What Happens to Employee Share Plans?
Selling a company isn't just about agreeing a price, it's about knowing exactly who is entitled to a share of it.
In CMS's latest instalment of Employee Equity 101, they take a closer look at what happens to employee share options and equity incentives when a company changes hands: the due diligence buyers carry out, the practical steps needed to get option holders across the line, and the funding and tax issues that can catch people out along the way.
Getting this right isn't just a compliance exercise, it can make all the difference to how smoothly employees transition into life under new ownership.
Challenges and Opportunities of Granting Employee Equity to a Global Workforce
Throughout this most recent series, we'll share practical insights and real-life experiences from both CMS and ShareReporter to help bring common issues to life and support companies operating internationally.
You can subscribe to these insights here.
We'll Be at the ProShare Conference
Come and talk to us at the ProShare Conference
Our team will be at the ProShare Conference in London on September 23. Please call in at our stand!
We are also presenting on examples of private companies managing global tax and legal compliance. Joe Kohler from our client Nethermind will be discussing how ShareReporter has helped his team's equity compliance, and Andy Quayle from CMS will be bringing legal insights.
Hope to see you there!