Employee Stock Plans: Mid-Year International Reporting Requirements

This Commentary highlights some of the principal mid-year reporting requirements for employee stock plans that U.S. companies most commonly encounter when offering these programs to their employees in selected jurisdictions worldwide. A chart summarizing these items appears at the end of this Commentary. Please note that this Commentary does not address routine, year-end tax reporting obligations, nor does it cover equity-specific reporting requirements with deadlines that fall between January and May. For information about certain year-end reporting requirements, please see the Jones Day Commentary entitled "Employee Stock Plans 2010: Year-End International Reporting Requirements." If you have any questions about these requirements or need any assistance, please do not hesitate to contact one of the Jones Day lawyers listed below.

Australia

Tax Reporting for Equity Grants. Employers are subject to annual reporting requirements with respect to all equity grants to Australian employees. By July 14, 2011, Australian employers must issue an Employee Share Scheme Statement to each employee who vested in an equity award in the prior tax year, and by August 14, 2011, the employer must file an Employee Share Scheme Annual Report with the Australian Taxation Office ("ATO"). To facilitate compliance, it is also recommended that employees be provided with a statement about their future reporting requirements.

India

Exchange Control Report. Companies should be aware of the requirement for the Indian affiliate to file a statement with the Reserve Bank of India through the AD Category–I Bank, which provides details regarding the shares issued to residents of India during the prior fiscal year. This report should be filed on Form ESOP Reporting (Annex–B and Annex–C) of the Master Circular on Direct Investment by Resident in Joint Venture (JV)/Wholly Owned Subsidiary Abroad and must be submitted no later than July 31, 2011.

Portugal

Tax Reporting for Stock Options/Restricted Stock Units/Purchase Rights. Article 119 of Portugal's Tax Code provides that issuers of equity awards made to employees in Portugal are subject to three reporting requirements, the third of which must be completed by June 30. By the last day of June of the year following the tax year in which income has been received from stock option exercises, the lapse of restrictions on RSUs, and stock purchases under an employee stock purchase plan, a company must file a Form 19 with the...