Global Tax Guide For Individuals With Stock Compensation

This section explains the taxation of equity awards in 30 nations: stock options, restricted stock, restricted stock units, performance shares, stock appreciation rights, and employee stock purchase plans. The country profiles to the left are regularly reviewed. At the end of each, the month of the most recently required update is given.

Why This Guide Matters

Most US companies communicate no tax information whatsoever to stock plan participants abroad, in the findings of a survey by the National Association of Stock Plan Professionals (2008 International Stock Plan Design & Administration Survey). Our Global Tax Guide is therefore a valuable starting point for people who need to know about the taxation of equity awards in the covered countries.

International Employees Face Complex Tax Issues

The tax laws for sourcing the income of mobile employees in two or more countries can be complex, especially when employees cross borders during the vesting period of equity awards. Moreover, American citizens, even if they work entirely outside the United States, must still consider the tax laws of the US in addition to the tax laws of the foreign countries where they work. Treaties between nations can prevent double taxation. Each country profile in the Global Tax Guide has a link to the relevant tax treaty with the US (if a treaty exists and a link is available).

See also a related article series and FAQ about international taxation for mobile employees. Another FAQ has survey data on the use of corporate stock plans outside the US. A different FAQ explains the tax-equalization programs through which some companies pay the foreign tax of employees on international assignments.

Seek Professional Advice On Specific Situations

While this guide can be a useful starting point, providing a general frame of reference on tax laws in each covered country, mobile employees should contact accountants, tax professionals, attorneys, and/or human-resources departments for advice on specific situations.

Please see our disclaimer and the background of this resource.