Tax likely on the discount at purchase.
Tax on sale. Taxable amount is difference between sale price and acquisition cost of shares.
Tax on sale; taxable amount may depend on whether investment registered with the Chilean IRS.
Possible with subsidiary reimbursement but may cause subsidiary to be taxed on the reimbursement payment to parent.
In addition, offer may need to be included in individual employee contracts (which will increase plan entitlement issues).
A written agreement is recommended if a local tax deduction is sought.
No, unless subsidiary reimburses the parent and seeks a local deduction.
Social Insurance Contribution:
Likely no, unless subsidiary reimburses the parent and seeks a local tax deduction.
Offer of ESPP to more than 50 individuals in Chile generally will be viewed as public offer of securities triggering a registration requirement. An exemption for employee share plan offerings may apply provided certain requirements are met, including that a special disclosure is included in offer materials and a notification is filed with the Chilean securities regulation.
Offer of ESPP to 50 or fewer individuals will not be considered a public offer of securities subject to registration requirement provided special securities disclosure is included in offer materials and no mass means of communication used to communicate offer.
Contact Baker McKenzie for more information.
To remit funds in excess of USD 10,000 for purchase of shares, employer (on behalf of employees) must comply with certain reporting obligations.
Additional reporting required for foreign assets including investments, deposits or credits, and/or foreign securities greater than USD 5 million.