Tax on discount at purchase.
Expatriate employees ceasing employment or leaving Singapore may be deemed to have exercised ESPP rights and be subject to taxation upon termination/leaving Singapore.
No tax on sale.
Allowed if treasury shares used to settle awards and subsidiary reimburses parent under a written agreement, but limited to the amount that the parent paid to acquire the treasury shares minus the amount paid for the shares by the employee.
Income Tax:
Generally, no withholding (except for certain expatriates ceasing employment and/or leaving Singapore based on deemed equity income).
Reporting requirements apply.
Social Insurance Contributions:
Generally, no.
Generally, employee share plan exemption applies.
Certain subsidiary director reporting obligations apply.
Plan and enrollment forms should indicate plan is discretionary.
* Determine if exemption requirements apply to avoid Ministry of Manpower approval for payroll deductions (e.g., employees provide written consent (electronic consent acceptable), employees can withdraw their consent, and there are no penalties for withdrawing consent).