Tax on discount at purchase (fair market value of the shares must be determined by an Indian merchant bank, unless shares are listed in India).

Tax on sale.

In addition, employee may be subject to Tax Collection at Source (TCS) on ESPP remittances if aggregate annual remittances out of India exceed a certain amount (currently INR 700,000). As of 1 October 2023, TCS is due at a rate of 20%.

Allowed if subsidiary reimburses parent.

Reimbursement payment may be subject to exchange control restrictions.

Cash-netting to effect the reimbursement is not permitted.

Income Tax:
Yes.

Social Insurance Contributions:
No.

Likely no, but application of Indian securities laws to non-Indian companies issuing equity awards is unclear.

Under applicable exchange control rules, Reserve Bank of India ("RBI") approval generally can be avoided for employee share plans only if the conditions of the general permission are met. Among other conditions, reliance on the general permission requires that employees use an authorized dealer when funds are remitted from India to purchase shares and that the local entity (through the authorized dealer) submit a semi‑annual return on Form OPI to the RBI reporting the details of the awards and remittances.

Repatriation of sale proceeds/dividends is required (but the employee's personal obligation). Employee may be subject to TCS if aggregate annual remittances out of India exceed a certain amount (currently INR 700,000). Authorized dealer bank generally required to collect TCS but companies advised to confirm applicable requirements with bank.

Cash-netting to remit reimbursement payment is not permitted.

Please contact Baker McKenzie for details.

Not generally, provided awards are not part of employment contract.

A valid basis is required to collect, process and transfer personal data.

India has enacted data privacy legislation under the IT Act. Moreover, the Supreme Court of India has recently upheld an individuals' right to privacy as a fundamental right guaranteed under the Constitution of India to all persons. The IT Act introduces new requirements and increases the rights of data subjects and potential penalties for non-compliance. Accordingly, companies should review their approach to data privacy compliance in the context of equity plan administration and consider on which basis they may be able to rely to collect, process and transfer data.