Tax at grant for RS; tax at vesting for RSU. Taxable amount is fair market value of the shares on the tax event.
Tax on sale.
Income Tax:
Yes, withholding required and must be deducted from employee's salary (up to the employee's monthly gross cash remuneration).
The employer must report the taxable amount in its monthly PAYE return.
Social Insurance Contributions:
Yes, the employer must pay social insurance contributions (uncapped). For employees, pension contribution is due on the taxable amount. However, as employees receive a corresponding tax credit for the amount of the pension contribution, this social insurance contribution is not separately withheld.
No, but written disclaimer advisable.
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 noncompliance.
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.