Tax at vesting for RS/RSU. Taxable amount is fair market value of the shares on the tax event. RS granted prior to 29 September 2018 may be treated differently.
Generally, no tax on sale provided shares are not sold immediately after acquisition.
However, foreign investment fund rules may apply.
A tax-favored regime may apply, provided certain conditions are met. These include that awards are offered to 90% of each class of employees on an equal basis, that shares are held by the employee for a certain period (generally three years) and that employees be offered an interest free loan or payment plan when paying more than nominal consideration for the shares.
Income Tax:
Withholding is not required. However, if the employee agrees, the local subsidiary may choose to withhold (in which case the employee will not have any tax reporting or payment obligations in relation to the benefit). Regardless of whether the local subsidiary chooses to withhold, the local subsidiary is required to report any income from the award.
Social Insurance Contributions:
No.
Yes, but an exemption from the prospectus disclosure and filing requirements should apply.
The employee share scheme exemption is available for offers of securities if considered part of the employee's remuneration/made in connection with employment and certain other conditions are satisfied (including providing a prescribed warning statement and certain financial information to employees).
The small offering exemption is available for offers of securities if made to 20 or fewer persons and with a value of NZD 2 million or less in a 12 month period and certain other conditions are satisfied (including providing a prescribed warning statement to employees and a notice filing to the authorities).
Please contact Baker McKenzie for more information.