Equity-based compensation

Typical forms

What are the prevalent forms of equity compensation awards in your jurisdiction? What is a typical vesting period? Must the arrangements be offered to a broad group of employees, or can the employer select the participants?

Not applicable (see questions 9 to11).

Must equity-based compensation be granted by the company’s board of directors (or its committee) or can the authority be delegated to officers or employees of the company? Are there limitations or requirements that apply to delegation?

Not applicable.

Tax treatment

Are there forms of equity compensation that are tax-advantageous or disadvantageous to employees or employers?

Not applicable (see question 11).

Registration

Does equity-based compensation require registration or notice? Are exemptions, or simplified or expedited procedures available?

Not applicable (see questions 9 to 11).

Withholding tax

Are there tax withholding requirements for equity-based awards?

Not applicable (see question 11).

Inter-company chargeback

Are inter-company chargeback agreements between a non-local parent company and local affiliate common? What issues arise?

Not applicable for labour law (specific tax rules govern this matter).

Stock purchase plans

Are employee stock purchase plans prevalent or available? If so, are there any frequently encountered issues with such arrangements?

Employee stock purchase plans are available but not prevalent. See questions 9 to 11.