The Global Equity Compensation Newsletter covers the latest developments relevant to companies operating global share plans.
In this edition, the updates include:
Belgium
The long anticipated "Jobs Deal" agreement has been enacted. The legislation imposes a reporting and income tax withholding on equity compensation granted by foreign issuers to Belgian employees.
China
China's Finance Ministry and State Administration of Taxation have jointly released further guidance regarding the Individual Income Tax regime reform to ensure a smooth transition to the new tax regime. The preferential tax treatment for bonuses and equity incentives (if applicable) will continue to apply until 31 December 2021.
Denmark
The Danish "Stock Option Act" has been amended to facilitate more flexibility for employers and enable companies to set their own terms for stock option plans. In particular, prescribed provisions for good and bad leavers have now been removed from the legislation. Companies will now be able to set whatever terms they choose in the event of termination of employment.
Saudi Arabia
Under the recently implemented securities laws, an offer of securities to employees is now considered an "Exempt Offer" rather than a "Private Placement". As a result, the securities requirements that previously applied have changed significantly and a new quarterly reporting requirement has been introduced.
Serbia
As from 1 January 2019 employees will generally be exempt from paying personal income tax on shares acquired either free of charge or at a discounted price pursuant to equity plans. Instead, capital gains tax will be due when the shares are sold, unless the shares are sold within two years from the vesting date, when the company or a related party buys back shares from the employee or when the employment is terminated within two years from vesting.
Please see the attached Newsletter for further details.
