For entities operating in free zones, it is likely that no income tax applies to local subsidiary (provided certain conditions are met) and a subsidiary tax deduction is generally not relevant.

Otherwise, where corporate income tax applies to the local subsidiary, a deduction should be permitted if an accounting deduction has been taken.

Please contact Baker McKenzie for details.

Income Tax:
N/A

Social Insurance Contributions:
Likely not applicable.

Generally, none.

None.

Awards paid in cash through local payroll generally have increased plan entitlement risks, as well as other increased labor law risks such as the need to include amount in termination indemnities, obligation to consult works council, etc.

Plan documentation should state that the grant is a "one time" or irregular benefit extended to the employee.

The employee's prior written consent to the collection, use and transfer of data prior to grant should be obtained.