Tax on discount at purchase for ESPP.

Tax on sale.

Awards granted on or after 1 July 2016 may qualify for tax deferral until sale and reduced taxation at sale provided certain requirements are met.

Please contact Baker McKenzie for more information.

Generally allowed without reimbursement by the subsidiary to the parent.

No deduction allowed for ESPP offered under the tax-qualified regime.

Income Tax

Reporting required at taxable event. The employer also has an annual reporting requirement for shares purchased in the prior calendar year, for both awards granted under the tax-qualified regime and non-qualified awards.

Please contact Baker McKenzie for more information.

No employer withholding obligation.

Social Insurance Contributions

Employee subject to social insurance contributions.

No employer withholding required.

The EU Prospectus Regulation is in effect in all European Economic Area countries, which includes all EU member states, 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.

Additional requirements may apply if relying on certain exemptions/exclusions or if a prospectus must be filed.

Contact Baker McKenzie for more information.

Amendments to the Danish Stock Option Act were adopted into law, with effect from 1 January 2019.

These changes may eliminate the requirements for involuntarily terminated employees to retain awards following termination and for the employee to be entitled to at least a pro rata portion of awards granted in the year of termination.

For grants made after 30 June 2004 but before 1 January 2019, the pre-1 January 2019 Danish Stock Option Act continues to apply.

For grants made on or after 1 January 2019, please contact Baker McKenzie for an analysis of whether the pre-1 January 2019 Danish Stock Option Act may continue to apply or whether the amended Danish Stock Option Act can apply.

Pursuant to the Danish Stock Option Act, equity awards will not be included when calculating holiday pay upon termination of employment.

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.

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

The EU Data Protection Regulation ("GDPR") became effective in all EU/EEA countries on 25 May 2018. It introduces new requirements and increases the powers of data protection authorities, 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.

Registration and notification requirements with local data privacy authorities may also apply.