Taxed at payment. Taxable amount is amount of the cash payment. Cash award will be treated as employment income.

Yes, because the local subsidiary bears the cost of award.

Written agreement between the local subsidiary and the employee is required for tax purpose.

Income Tax:
The employer is required to withhold income tax on the amount of the cash payment to the employees.

Reporting requirements apply.

Compulsory Insurance (Social/Health and Unemployment Insurances) Contributions:
No, provided that the cash payment is clearly defined as bonus.

None.

None, provided awards paid through local payroll.

To mitigate entitlement risk, it should be clearly provided that the awards are granted at the foreign parent company's discretion. The cash payment must be clearly provided as bonus.

The employee's written consent to the transfer of personal data must be obtained.