Welcome back to Global Insights, our monthly look at how equity compensation is taxed, tracked, and occasionally tangled across the globe. April brought national holidays and independence celebrations to several key markets — and with them, some fascinating (and surprising) rules around employee equity. Let’s dive into this month’s round-up of global equity quirks, from the Teranga twist to Rolls-Royce plans.
Senegal – Independence Day (April 4)
The Teranga Twist: Hospitality with a Tax Bill
In Senegal, equity compensation comes wrapped in warm hospitality and a progressive tax scale ranging from 0% to 40% (Code Général des Impôts). But here’s the silver lining — taxation is deferred until you actually sell your shares. Companies with more than 10 employees must implement profit-sharing schemes under the Labour Code (“régime de participation”), making generosity a legal requirement. When you do sell, capital gains are taxed at a flat 15%. Friendly and fiscally fascinating!
Republic of Georgia – National Unity Day (April 9)
The Virtual Zone Jackpot
Georgia’s “Virtual Zone Person” status is a tech-friendly tax incentive that offers 0% capital gains tax for companies registered in designated IT zones. That’s right: zero. While local employees still face 20% income tax on vesting, they’re spared social security taxes altogether. The paperwork is intense (imagine wallpapering a Tbilisi apartment), but for startups and scaleups, the payoff is golden. (Georgian Tax Code, Article 24)
Learn more about managing international peers and currency considerations in our article, Don’t Let International Peers be Foreign to You.
Zimbabwe – Independence Day (April 18)
Triple Taxation Tango Meets Five-Year Freeze
Zimbabwe’s CGT1 form requires capital gains to be calculated in both US and Zimbabwean dollars — because one currency just isn’t enough fun. Equity is hit at grant (income tax), at vest (again), and at sale (capital gains). But there’s a twist: under the 2023 Finance Amendment, employees who stick around for five years get a tax holiday on equity grants. Commitment pays off — literally and legally. (ZIMRA Tax Bulletin, 2023)
England – St. George’s Day (April 23)
The EMI Advantage: Equity, But Make It British
England’s Enterprise Management Incentive (EMI) scheme is the Rolls-Royce of equity plans. Qualifying employees can receive up to £250,000 in options with no income tax at exercise. Instead, they pay just 10% capital gains tax under Business Asset Disposal Relief. HMRC even pre-approves EMI plans — which is as close to tax certainty as it gets. Just don’t forget to file your annual returns, or HMRC might penalize you faster than a Premier League ref flashes a red card. (UK Income Tax Act 2003, Schedule 5)
Italy – Liberation Day (April 25)
The Equity Risotto: Stirred with Tax Incentives
Italy approaches equity like fine cuisine — careful, layered, and full of regional variation. The 2022 Budget Law introduced a 50% tax exemption on equity for tech workers under the “patent box” regime. Expats may also qualify for the “Regime degli Impatriati,” which exempts 70% of equity income. Just know that the Italian tax authorities treat vesting schedules with the same scrutiny as a Sunday sauce. Timing — and paperwork — is everything. (Italian Budget Law 2022)
Sierra Leone – Independence Day (April 27)
Diamond Hands, Bureaucratic Bling
Sierra Leone’s Finance Act 2021 created the “Diamond Hands” program — hold your equity for 3+ years and qualify for a reduced 10% capital gains tax (versus 30%). The catch? You’ll need to register your equity grants with both the National Revenue Authority and the Corporate Affairs Commission, filling out nearly identical forms — twice. The 2022 updates aimed to simplify things… by adding more forms. Shine bright, but be ready to file. (Sierra Leone Revenue Authority Guidelines, 2022)
South Africa – Freedom Day (April 27)
Equity in the Rainbow Nation
South Africa’s Section 8C taxes equity at vesting, with rates up to 45%. But don’t worry — Broad-Based Black Economic Empowerment (B-BBEE) schemes may offer exemptions on dividends. The 2023 Taxation Laws Amendment now requires global employees to report both local and offshore equity holdings, so keep those spreadsheets current. The South African Revenue Service watches equity grants like Kruger Park rangers watch the Big Five. (South African Income Tax Act, Section 8C)
To ensure compliance and optimal tax treatment, especially at year-end, refer to our comprehensive guide: Your Ultimate Year-End Checklist for Global Equity Compensation Success.
What’s To Come
Stay tuned for our May edition of Global Insights as we explore the equity compensation landscapes of countries celebrating national holidays and independence days—including Israel, Poland, Norway, and more.
Have a question about global equity or want to see your country featured? Reach out to our Global Insights lead, Yael Elbaz-Roiter, CEP, FGE — because when it comes to crossing borders with stock plans, knowledge is your best currency.
