Welcome to the Share | Updates – February 2026 edition!
This month, our expert review covers updates from Australia, Canada, Cyprus, Denmark, Egypt, Ireland, Malta, Netherlands, Panama and Slovakia, helping you stay informed and prepared for compliant, efficient equity plan implementation.
Recent Changes
Australia
Payday Superannuation Legislation Enacted – cash plan
Australia passed a new law called the Treasury Laws Amendment (Payday Superannuation) Act 2025, which officially became law on 6 November 2025.
One of the key changes introduced is that, from 1 July 2026, employers must pay superannuation at the same time they pay wages (for example, weekly or fortnightly). Superannuation will now be paid on payday, not every quarter.
The Australian Superannuation Funds Association (ASFA) has created a “Payday Super Hub” to help employers and workers understand these changes.
Canada
Employment Insurance Contribution Rates Updated for 2026 – cash plan
Where Awards are cash settled, employer’s and employee’s Employment Insurance Contributions are also payable.
Employee Employment Insurance is payable up to a maximum rate of 1.63%.
Employer Employment Insurance Contributions is payable up to a maximum rate of 2.282%.
Different rates will apply in Quebec.
Cyprus
New Tax Advantaged Regime
Certain employee awards may now benefit from a flat 8% tax rate on the taxable amount at vesting, up to a limit based on the employee’s annual remuneration. Any benefit above this is taxed at normal rates.
The regime is available only to Awards that meet the required conditions, including prior approval by the Tax Commissioner and a minimum three‑year vesting period from the approval date, together with restrictions on transferability and limits on the value that can benefit from the reduced rate.
Denmark
Improved 7P Scheme for Startups
Subject to approval under the EU State Aid rules, the Danish Government is proposing the following improvements to the 7P Scheme for startups.
The qualifying criteria for companies will be broadened, increasing:
- the company activity limit from 5 to 10 years
- the limit on company employees from 50 to 150
- the annual turnover or balance sheet limit from DKK 15m to DKK 200m
The cap on the number of shares awarded to each Participant has been removed. Additionally, the need to undertake share valuations on each Award date has also been removed.
Egypt
Social Security Cap Increased
The National Social Insurance Authority has announced new salary limits for calculating social insurance contributions, starting 1 January 2026. The maximum salary used to calculate contributions will increase from EGP 14,500 to EGP 16,700.
Ireland
Lifetime Limit for the 10% Capital Gains Tax Rate
Ireland will increase the lifetime limit for the 10% capital gains tax rate on qualifying business asset disposals to €1.5 million (from €1 million), effective for disposals on or after 1 January 2026, enabling entrepreneurs to benefit from the 10% rate on an additional €500,000 of lifetime gains.
Malta
High‑skilled Professionals Regime
Malta has introduced a flat 15% income tax rate for qualifying senior employees in family office, back‑office, or treasury management roles, aimed at attracting high‑skilled professionals. The regime has a retrospective entry into force date of 1 January 2025, and can be claimed for up to 15 years. Eligibility requires annual remuneration of at least €65,000 and satisfaction of specified experience or qualification criteria.
Netherlands
Proposed Tax Advantaged Stock Options for Start-ups and Scale-ups
In its Spring Memorandum, the Dutch Government has proposed a potential new tax-advantaged stock option arrangement for Dutch start-ups. If approved, the new arrangement might be available from 1 January 2027.
Under the proposal, stock options granted by eligible start-up and scale-up companies will benefit from two key changes to the normal tax regime:
- tax will arise on the ultimate sale of the shares rather than on the exercise of the option or when the shares first become tradable; and
- tax will be paid at an effective tax rate up to a maximum of 32.17% (taxable basis of income from qualifying share options is set at 65%) rather than under normal income tax rates up to 49.5%.
Employee Share Awards Taxation – Box 3 Issues
Employee share awards in the Netherlands typically fall to be taxed at vesting/exercise which is under ‘Box 1’. After that point, the shares become part of the employee’s private wealth and fall into Box 3. Box 3 imposes a wealth tax on a notional return on the shares held.
A shift to a new regime was due to be introduced which included taxation under Box 3 based on the actual value of the shares held, as if a capital gain had been realised, even if no gain had been realised.
However, as of 25 February 2026, the new government in the Netherlands has withdrawn the proposed change due to strong criticism, particularly around taxing unrealised gains for shares in private companies where there is no immediate chance for liquidity. The system is expected to be revised, but it is unclear at this time what the final regime will look like.
We will update you as changes happen.
Panama
Employer Social Security Contribution Increased
Employer social security contributions in Panama have begun increasing under a phased reform that took effect on March 18, 2025. The employer contribution rate rose to 13.25% and is scheduled to increase further to 14.25% on March 1, 2027, and to 15.25% on March 1, 2029. Employee contribution rates remain unchanged at 9.75%.
Slovakia
Increased Income Tax Rates
From 1 January 2026, Slovakia is implementing a four-tier progressive personal income tax system to replace the previous two-tier system, featuring rates of 19%, 25%, 30%, and 35%. The higher rates apply to income exceeding specific thresholds based on the ‘subsistence minimum’.