Generally, yes, provided subsidiary bears the cost of award (whether by paying the award directly to the employee or by reimbursing parent pursuant to a written agreement if parent makes payment).
However, subject to exchange control approval (which is unlikely).
Income Tax:
Yes. Local subsidiary must obtain directive from South African Revenue Service to determine appropriate withholding amount prior to withholding for each taxable event.
Social Insurance Contributions:
Yes, for both the employee and employer unless ceiling met. Employer has to withhold employee's contributions.
Employer also must pay uncapped skills development levy on income.
None.
Alternatively, an employee share scheme exemption from prospectus requirements is available, provided certain requirements are met, including appointing a "compliance officer," providing certain written disclosures to employees and filing certain "registration" documents and an annual report with the South African Companies and Intellectual Property Commission.
Please contact Baker McKenzie for more information.