Global Share Plans

Australia: Australian tax rules legislation passed. Tax now due on vesting although deferral may be possible until exercise or, where shares are subject to restrictions on sale for up to 7 years * * * EUPD : EU introduces the use of a short form prospectus for non EU companies * * * India: Indian Finance Minister abolishes Fringe Benefit Tax in July Budget * * * FInancial Intermediaries: Now required in (at least) Italy, Poland and Saudi Arabia * * * Australian Federal Budget: Changes to the deferral of tax on award/grant conditions and taxation of trusts still being reviewed * * * Italy approved options abolished: Change in law abolishes approved options but eliminates social security on options * * * Sri Lanka tax approved plans: New tax approved plan can now be obtained by direct application * * * Saudi Arabia: Share plans should be registered before being offered in Saudi Arabia * * * Thailand: SEC regulations relaxed allowing employee offers to be made regardless of numbers or amounts without the need for a registration statement * * * Belgium: Possible relief for employees that have paid tax on grant of options. They may be able to extend option period to allow later exercise without paying further tax * * * Australian tax : Potential tax on award for options and RSUs. Legislation in draft form. Recent moves by ATO in Australia indicate potential auditing for equity plans * * * Thailand - Forex change: The Bank of Thailand has increased the limit on fund remittance to purchase shares of overseas companies under employee share plans to USD 1 million per person per year (formerly USD 100,000) * * * EU Prospectus Directive: A recent report from CESR indicates that short form disclosure and prospectus may be acceptable across europe * * * India FBT Tax - valuation and payment: India Central Board of Taxes has announced valuation of share awards for FBT purposes to be made using Category 1 Merchant banker in India and payable by December 15 * * * Thailand exchange controls: US$ 100,000 limit per year on transfers abroad has been expanded to 1 million US$ per year per person * * * Greek capital gains tax: Recent legislation in Greece indicates taxation of share plans will now not change until 2010 * * * Finland and deductions: A November Supreme Court decision approved the deductibility of a payment by Finish subsidiary to its parent company. Legislation may remove this right however * * * NASPP Annual Conference October, 2008: New Orleans ---- Full Details at www.naspp.com * * * France: Following recent legislation social security is now payable on qualified share awards * * * China Plan Registration: Recent circulars in China indicate that both option plans and ESPPs should be registered with SAFE with fines for non compliance. Companies with share plans in China should seek local advice * * * France favourable tax confusion: Recent legislation on favourable tax regime indicates tax approved plans may need to be offered to 90% of employees in order to obtain relief * * * South Korea: Recent changes indicates a deduction may now be available locally and changes withholding position * * * Finland - Deductions for share plans: A recent court decision has allowed a deduction where a subsidiary has been charged for a share plan under the grounds that in the US the company has to count this as an expense. It is expected new legislation will close this at year end * * * Kazakhstan - Requirement to notify Central Bank: Kazakh employees are now required to notify the Central Bank of the acquisition of shares in a non-resident only if the value of the shares exceeds US$50,000 * * * Philippines - No tax on option exercise: Bureau of Internal Revenue recently ruled that the discount on an option exercise is not taxable. Reversing previous BIR rulings that discount on exercise is taxable income * * * German CGT: CGT is now payable at a rate of 25% on the sale of shares in Germany * * * Vietnam: New Foreign Exchange Decree hints that residents may be able to make offshore investment in the future. However, no such regulations are yet in place * * * Japan- No filings for less than 50 persons: Recent legislation indicates no filings are now required where the company has less than 50 employees operating in an employee share plan * * * Venezuela: Recent amendments to exchange control laws require companies to register with the Comision de Administracion de Divisas (“CADIVI”). Where employees receive cash in foreign currency in Venezuela (through dividends or share sales) these foreign exchange regulations may affect the receipt of that foreign currency. Local advice is recommended * * * Canada confirms withholding obligation: Recent policy changes by the Canadian Revenue Authorities indicate that withholding is now required on share plans for Canadian residents * * * Australia: Payroll tax standardised across Australia and payable on share plan benefits * * *

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“The GlobalSharePlans team have been extremely helpful in getting us to practical solutions in managing global legal due diligence for our share plans. Their database is easy to use and was especially adapted by them to suit our needs and requirements, while the service behind the database has been responsive and focused. This has saved us time and money, while allowing us to achieve our objective of full compliance.”

Peter Vassallo, Reward Director BP Plc

GlobalSharePlans

We are a leading provider of regulatory and tax advice on international stock option plans, restricted stock plans, restricted stock unit plans, stock purchase plans and cash based alternatives.

Acting for major multinationals and working with our network of lawyers in 115 countries, we will provide you with the advice you need for your global share plan.

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You can use our database products to create your own feasibility table setting out the securities laws, exchange controls, and employment law and tax implications of your global share plans.

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Please Note: In preparing the information in the GlobalSharePlans databases we have attempted to provide the most up to date advice available. However, the law does change rapidly in this area and specific circumstances are likely to apply to your company benefit plan which may affect the advice. The information should therefore be used as guide only. Before acting upon the information or refraining to act due to the information we would recommend that you seek independent advice. We would be happy to assist you in obtaining that advice.

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