Slice | Global Equity

🇺🇦 Equity Update – Ukraine – Tax Rate Increase 🇺🇦 📢 On October 10, 2024, the Ukrainian Parliament passed Draft Law No. 11416-д, increasing the Military Levy rate from 1.5% to 5% on all individual income, including income from equity awards and cash compensation. The Military Levy, introduced in Ukraine in 2014, is an additional tax component similar to National Insurance contributions in other countries. It applies in addition to the 18% Personal Income Tax, which remains unchanged. What does this mean?  🔺 This increase will result in a higher tax burden for individuals receiving options, impacting the overall cost of equity compensation in Ukraine. The law awaits the President’s signature and is expected to become effective the day after its publication. A big thank you to our affiliates at Kinstellar Company Lawyers Network, and specifically to Lyudmyla Dzhurylyuk, for their key role in our research on Ukrainian equity taxation and their collaboration on this update. 🔎 Discover how Slice | Global Equity platform can help you stay in compliance while granting stock options in Brazil and beyond. Book a demo ➡️ https://lnkd.in/d5egRW3k Daniel Assulin 🙏 #UkraineTax #EquityCompensation #MilitaryLevy #TaxUpdate #PrivateEquity #GlobalEquityCompliance #SliceGlobal

🇧🇷 Big news for companies offering stock options in Brazil! 🇧🇷 For years, companies and employees in Brazil have grappled with uncertainty over whether stock options should be taxed as employment income or could enjoy capital gains benefits. On September 11th, 2024, Brazil’s Superior Court of Justice delivered a landmark ruling that finally provides clarity on this issue, deciding that options should be: 🔹Taxed as Capital Gains: Stock options will be taxed as capital gains when shares are sold, at rates of 15%-22.5% (treated as “Mercantile Transactions”). 🔹Not Treated as Remuneration: This differs from treating options as remuneration, which is taxed at higher rates upon exercise, includes social security contributions, and requires employer tax withholding. 🔍 Key Conditions for “Mercantile Transaction”: ▪️Employees must pay to acquire the stock. ▪️Participation is optional at vesting. ▪️Employees assume market risk after acquisition. ▪️Profits come from share appreciation, independent of employment. 🔺 Note: This ruling applies only to stock option plans, not RSUs or Phantom Stock. At Slice, we work closely with leading firms worldwide to stay current on the latest equity regulations and rulings. A big shout-out to Alex Jorge, Paulo Takafuji, Juliana Costa and the rest of the team at Campos Mello Advogados (in cooperation with DLA Piper) for their leading role in our research on Brazilian equity taxation and their collaboration on this update. Discover how our platform can help you stay in compliance while granting stock options in Brazil and beyond. Book a demo ➡️ a link to our website is the first comment. #EquityTaxation #GlobalEquityCompliance #EquityCompensation #StockOptions #BrazilEquity #EmployeeBenefits #SliceGlobal #GlobalEquity

🚨 Updated Legislation Alert: Israel Changes Equity Incentive Plan Requirements 🚨 On September 17, 2024, the Israeli Tax Authority (ITA) introduced important changes to the Income Tax Regulations on employee equity allocation, effective January 1, 2025. The amendments introduce new requirements that companies must navigate. 🔍 Key Highlights: 🔸 Stock Plan Approval Process: Under the 102 trustee tax regime, companies must submit their incentive plans for approval to the ITA at least 30 days before granting any equity. One of the changes introduced by the ITA is the Appendix D questionnaire, which consists of 18 questions designed to ensure compliance with the ITA's interpretations. Notably, any changes to the award plan after submission that affect responses in this questionnaire will require resubmission, effectively treating it as a new incentive plan. For example, the questionnaire asks companies to specify vesting conditions and confirm that the shares to be allocated are ordinary shares without any call or put options and are not dormant shares. If a company's answers deviate from the ITA's accepted positions, it may receive a "Red Flag" notification from the ITA, prompting it to clarify its stance or adjust the incentive plan for approval. 🔸 Enhanced Reporting: Companies and trustees will now be obligated to submit quarterly (Form 146) and annual (Form 156) reports online within 120 days from the end of the relevant period. This change will make Equity allocation practices more transparent and accountable. 🔸 Upcoming Online System: The ITA will soon roll out a new online platform for submitting incentive plans and periodic reports, replacing the manual submission process. This initiative is expected to simplify compliance and improve efficiency. These amendments are designed to enhance the oversight of equity awards and ensure that companies adhere to established guidelines. As we approach the effective date, companies granting equity in Israel should prepare and stay informed about the upcoming changes. For more details and to discuss how these changes may affect your company, reach out to us at https://lnkd.in/d5egRW3k #equity #startupnation #Israelinnovation #AIStartups #cybertech #VentureCapital #FinTechIsrael #Legaltech #equitycompensation #compensationandbenefits #executivecompensation #GlobalEquity

"While 76% of companies now offer equity, 61% of U.S. participants lack understanding about maximizing their stock plan benefits." Morgan Stanley, thanks for a great article that caught our attention! (Link to article - in the comments) Read more from Maor 😎 👇

Thank you, Chris Hoffmann, ECA 🚀🧢 !

🚨 𝗡𝗲𝘄 𝗟𝗲𝗴𝗶𝘀𝗹𝗮𝘁𝗶𝗼𝗻 𝗔𝗹𝗲𝗿𝘁: 𝗜𝗻𝗱𝗶𝗮 𝗖𝗵𝗮𝗻𝗴𝗲𝘀 𝗧𝗮𝘅 𝗥𝗮𝘁𝗲𝘀 𝗼𝗻 𝗦𝘁𝗼𝗰𝗸 𝗢𝗽𝘁𝗶𝗼𝗻𝘀 🚨 On August 16, 2024, the Indian government passed significant changes as part of the 2024-2025 Union Budget. These changes, effective from July 23, 2024, impact foreign grantors issuing stock options to Indian grantees. What’s important to know? If you have employees in India 🇮🇳: 🔹 𝗥𝗲𝗱𝘂𝗰𝗲𝗱 𝗟𝗼𝗻𝗴-𝗧𝗲𝗿𝗺 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗚𝗮𝗶𝗻𝘀 𝗧𝗮𝘅 𝗥𝗮𝘁𝗲: The base tax has been reduced from 20% to 12.5%. This applies to the sale of shares by Indian grantees of foreign grantors held for over 24 months. 🔹 𝗥𝗲𝗺𝗼𝘃𝗮𝗹 𝗼𝗳 𝗜𝗻𝗳𝗹𝗮𝘁𝗶𝗼𝗻 𝗔𝗱𝗷𝘂𝘀𝘁𝗺𝗲𝗻𝘁𝘀: The new legislation eliminates the inflation adjustments previously applied to the sale of shares by Indian grantees in long-term capital gains calculations, potentially increasing the taxable amount for these grantees. At Slice | Global Equity, we always keep up with the latest regulations. A big thanks to Kunal Savani, tax partner at Cyril Amarchand Mangaldas, for his key contributions to our research on Indian equity taxation and for the collaboration on this update. For more details and to discuss how these changes may affect your employees, reach out to us at: https://lnkd.in/d5egRW3k #EquityCompensation #GlobalEquityCompliance #EquityTaxation #IndiaEquity #EmployeeBenefits #SliceGlobal #GlobalEquity

 🔒 X 🍕 X 🧦 At Slice, we recognize that managing equity goes beyond just numbers—it’s about trust, precision, and the highest level of security. 🌟 We’re excited to share that we’ve renewed SOC 2 and ISO 27001 certifications! These certifications underscore our unwavering commitment to safeguarding the sensitive data entrusted to us by our customers. Thank you, Deloitte and Raz Birman #EquityManagement #Equity #DataSecurity #SOC2 #ISO27001 #Compliance #Trust #Slicequity

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🚀 Pt. II - Building The World's Most Advanced Compliance Engine for Equity In our previous blog, Amit Fogel Levy shared how we gather comprehensive global legal and tax information. Part two is here - and this time - we're sharing how we integrate this knowledge into a sophisticated rule-based compliance engine. Key Highlights: 🔸 Centralizing vast amounts of legal and tax data. 🔸 Creating precise, jurisdiction-specific compliance rules. 🔸 Seamlessly integrating the engine for real-time insights and proactive alerts. 📢 Stay tuned for Part III to explore the state-of-the-art technology behind our compliance engine. https://lnkd.in/eNg6CpAA Maor Levran Yoel Amir #SliceGlobal #EquityTaxation #GlobalEquity #Compliance #EquityManagement #LegalTech #TaxTech #Innovation #GlobalCompliance

Remote working is here to stay 🌍 Employers are increasingly interested in diversifying recruitment sources and hiring talent from all over the world, regardless of location. Maor Levran gave his angle on a few challenges when granting equity options for remote talent. Read more about it on CTech by Calcalist https://lnkd.in/dhZfMZQZ Ofir Auslander #EquityCompensation #EquityTaxation #QualifiedOptions #EmployeeBenefits #GlobalEquity #CFO #Tech