Tax at vesting for RS/RSU. Taxable amount is fair market value of the shares on the tax event.

Tax on gain at sale.

Income Tax:

No withholding. Reporting requirements apply.

Social Insurance Contributions:

If local subsidiary reimburses parent or award income otherwise considered to be part of local compensation, employee and employer contributions will likely be due at taxable event (uncapped), in which case employer must withhold the employee's social insurance contribution.

If no reimbursement and income not otherwise considered part of local compensation, social insurance contributions likely not due.

No securities law restrictions or obligations apply.

Non-transferable free offers of RS/RSUs are not considered a public offering of securities for purposes of the EU Prospectus Regulation.

Written disclaimer important to reduce risk of plan entitlement.

Irregular grants reduce risk.

Exclusion of part-time employees may be deemed discriminatory.

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.