Tax on discount at purchase.
Tax on sale if shares acquired on or after 1 January 2011. No tax on sale if shares are acquired before 1 January 2011 and certain other conditions are met.
Generally, yes.
Social Insurance Contribution:
Yes, generally for both the employee and the employer unless employee's contribution ceiling is met. Employer has to withhold employee's contributions.
The EU Prospectus Regulation is in effect in all European Economic Area countries, which includes all EU member states, as well as Iceland, Liechtenstein and Norway ("EEA"). ESPP purchase rights are considered a public offering of securities for purposes of the EU Prospectus Regulation.
An EU-compliant prospectus will be required for the offer of an ESPP in any EEA member state, unless an exemption or exclusion applies. A "small offering exemption" is available if the offer is made to less than 150 persons in a member state. An "employee share scheme exemption" is available if the offer is made to existing or former employees (or directors), provided the offerees are provided with a short disclosure document that contains certain prescribed information about the offer. An exclusion for offers under a certain value threshold across the EEA may also be available.
Even if an exemption/exclusion from the prospectus requirement is available, depending on the exemption/exclusion, certain notification requirements with the Austrian securities regulator may apply.
Contact Baker McKenzie for more information.
Minor employee reporting requirements may apply.
*Payroll deductions under an ESPP have to be held in an interest-bearing account unless the employee waives their right to be paid interest.
Risk that value of awards will have to be included for purposes of determining severance indemnities, termination pay, or calculation of other employee end of service benefits.
Written disclaimer recommended to reduce risk.
Discrimination against part-time employees is generally prohibited. Works council (if any) may need to be informed before implementation of the plan.
The EU Council Directive 2000/78/EC prohibits age discrimination. Most, if not all, countries have adopted local rules implementing this Directive, which may have an impact on design of equity and other incentive plans in the EU, particularly on age or age and service provisions which give different treatment (e.g., accelerated or continued vesting) for those meeting the criteria.