Tax on the discount at purchase.

Tax on sale.

Yes, even if subsidiary does not reimburse parent.

If reimbursement implemented, the local subsidiary may be required to file certain forms with the Bank of the Republic.

Income Tax:
Withholding and reporting required at the taxable event; however, the employer also has an annual reporting requirement.

Social Insurance Contributions:
Employee and employer social insurance contributions may be required. Social insurance contributions are due if non-salary benefits (including award income) received by the employee in the month of the taxable event exceeds 40% of an employee's monthly income.

If due, employer must withhold the employee's contribution.

Yes, onerous filing requirement if over 99 offerees, but separate and distinct offerings need not be aggregated.

In addition, there is an employee share exemption irrespective of the number of offerees, provided the grants are made under an employee incentive plan and referenced in employment agreements.

Yes, certain reporting obligations apply to the remittance of funds from Colombia, and the acquisition of shares must be registered by the employee with the Bank of the Republic, regardless of the value of the employee's investment.

Yes, but may be mitigated by including language in award agreement that the grant is discretionary, the plan is subject to termination and the benefits are not salary.

Written consent from employees for the transfer of data abroad is strongly recommended. Companies are advised to check with their data privacy counsel to determine any other requirements (such as notification or registration obligations).