Welcome to the Share | Updates October edition!
Recent Changes
At ShareReporter, in partnership with CMS, we keep you informed about key legal and tax compliance developments worldwide. This month, we’re highlighting updates from Belgium, Brazil and the Czech Republic.
New Section – Did You Know?
We’ll spotlight a different country each month, with a quick insight, regulatory tip, or interesting fact that could influence your plan or compliance strategy. This month’s focus: Turkey.
Periodic Reminders
We regularly share upcoming deadlines for annual returns, statements, reports, notifications and filings you can expect over the next three months.
Recent Changes
Belgium
Proposal to Introduce Capital Gains Tax – further details
Belgium is proposing a 10% tax on capital gains from shares for private individuals, effective 1 January 2026. The tax would apply to annual gains above approximately €10,000, with possible exemptions for gains below this threshold or within an annual allowance of around €15,000 for some individuals.
This measure is pending final approval and marks a significant change from the current regime, where such gains are generally untaxed.
Brazil
Income Tax Reform
On 1 October 2025, Brazil’s lower house of Congress approved a tax reform bill that would significantly change individual income taxation (awaiting Senate approval).
The reform has two primary goals: to reduce the tax burden on low and middle-income earners, and to establish a minimum tax for individuals with high annual incomes.
The bill introduces monthly tax reductions for individuals earning up to BRL 7,000 per month in taxable income:
- For incomes up to BRL 5,000/month: full exemption (currently BRL 2,640/month)
- For incomes between BRL 5,000 and BRL 7,000/month: a progressive reduction will apply
- For incomes above BRL 7,000/month: no reduction applies
To offset the broader exemption, the bill plans to introduce a minimum effective tax on high earners: individuals with annual income above roughly BRL 600,000 would be subject to a scaled minimum rate that rises to 10% for income exceeding BRL 1.2 million, ensuring at least a 10% burden after deductions and credits.
If approved by the Senate and signed by the President, the measures will take effect for taxable events occurring after January 1, 2026.
Withholding on Monthly Dividends Over BRL 50,000
Brazil is proposing a 10% withholding tax on dividends, paid by both residents and non-residents. For residents, this will be charged on earnings exceeding BRL 50,000 in one month. For non-residents and legal entities abroad this will be charged regardless of the amount and jurisdiction of the recipient.
This applies to dividends distributed by Brazilian companies.
If the company is not based in Brazil, dividends paid on shares held by participants are currently subject to taxation at rates of up to 15%.
Czech Republic
Possibility to Defer tax until Sale (Start-ups)
From 1 January 2026, it will be possible to defer taxation of Employee Stock Option Plans until employees sell their shares (or up to 15 years), rather than at exercise as the case is currently. Further, health and social contributions will generally not apply.
To be eligible, the company must meet several key criteria like, annual turnover must be under CZK 2.5 billion, and total assets must not exceed CZK 2 billion.
Under the new ESOP rules, the eventual sale of shares by employees will be treated as ordinary income (up to 23% tax) rather than a tax-free capital gain.
If the strike price is granted at a discount to the fair market value the difference will be taxed as income on grant with social and health contributions.
Did you Know?
Turkey
Tax-advantaged arrangements are available in respect of Awards in tech start ups in Turkey which provide exemptions from income tax on equity based Awards in certain circumstances.
However, the income tax may be subject to clawback on the sale of the underlying shares, depending on when they are sold.
If the employee’s shares are sold within 12 years of acquisition, the previously exempt income becomes partially taxable (“claw-back”) at the employer’s responsibility – 100% recapture if sold within 3 years, 75% if sold within 4–6 years, 25% if sold within 7–12 years.
Periodical Reminders
China
SAFE Quarterly Filing – October 30
Companies registered with the State Administration of Foreign Exchange (SAFE) in China are required to file their quarterly reports electronically.
China
SAFE Foreign Exchange Quota Renewal – December 31
Companies registered with the State Administration of Foreign Exchange (SAFE) in China are required to file their quarterly reports electronically.