This Commentary highlights some of the principal mid-year reporting requirements for employee stock plans that U.S. companies most commonly encounter when offering these programs to their employees in selected jurisdictions worldwide. A chart summarizing these items appears at the end of the Commentary. Please note that thisCommentary does not address routine, year-end tax reporting obligations, nor does it cover equity-specific reporting requirements with deadlines that fall between January and May. For information about certain year-end reporting requirements, please see the Jones Day Commentary titled “Employee Stock Plans: Year-End International Reporting Requirements.” 


Tax Reporting for Equity Grants. Employers are subject to annual reporting requirements with respect to all equity grants to Australian employees. By July 14, 2014, Australian employers must issue an Employee Share Scheme Statement to each employee who was granted or vested in an equity award in the prior tax year (i.e., July 1, 2013 to June 30, 2014). By August 14, 2014, the employer must file an Employee Share Scheme Annual Report with the Australian Taxation Office (“ATO”).


Exchange Control Reports for Stock Options/Restricted Stock Units/Purchase Rights. For companies that have obtained SAFE registration for their equity plans in China, quarterly reports must be filed with the local SAFE officials detailing the company’s equity plan activity (e.g., grants, exercises, share sales, and the balance of the designated foreign exchange account) during the previous quarter. The next report is due by July 3, 2014 for activity that occurred during the second quarter of 2014. 


Exchange Control Report. Companies should be aware of the requirement for the Indian affiliate to file a statement with the Reserve Bank of India through the AD Category–I Bank, which provides details regarding the shares issued to residents of India during the prior fiscal year. This report should be filed on Form ESOP Reporting (Annex–B and Annex–C) of the Master Circular on Direct Investment by Resident in Joint Venture (JV) / Wholly Owned Subsidiary Abroad and should be submitted as soon as possible after the end of the fiscal year.


Tax Reporting for Stock Options/Restricted Stock Units/Purchase RightsAs a result of changes to Portugal’s Tax Code that became effective earlier this year, issuers of equity awards made to employees in Portugal are now subject to monthly reporting requirements. Portuguese companies must submit the new report on a prescribed form (Form DMR) by the 10th day of the month following the month in which the taxable event occurs. Although this requirement replaces the annual Form 10 reporting requirement that used to be due at the end of February of each year, the Form 19 reporting requirement still remains. By the last day of June of the year following the tax year in which income has been received from stock option exercises, the lapse of restrictions on RSUs, and stock purchases under an employee stock purchase plan, a company must file a Form 19 with the Ministry of Finance in Portugal. The Form 19 essentially discloses the existence of the company’s various equity plans and reports certain data about the grants, such as the date of grant/purchase, the date of exercise/vesting, the date of forfeiture (if applicable), and the amount of income received from the exercise/vesting/purchase.

United Kingdom

Tax Reporting for Incentive Stock Options/Purchase Rights.For each UK tax year, which runs from April 6 to April 5, UK employers are required to file a number of tax returns with Her Majesty’s Revenue & Customs that relate to equity grants made to their employees and the exercise or vesting of such rights.

By July 6, 2014, UK employers must file annual stock-related benefits reports with respect to stock options and other stock purchase rights that have been granted and/or exercised and/or vested in the 2013–2014 tax year. With respect to stock options/purchase rights granted under stock plans that are not tax advantaged, the report must be filed on Form 42. With respect to rights granted under tax advantaged stock plans, UK employers must file the prescribed form for that particular type of plan (Form 34, 35, 39, or 40). 

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