This guide explains the taxation of stock compensation in 42 countries, including the rules on income tax, social taxes, capital gains tax, income-sourcing, tax residence, exit tax, and asset reporting.
To provide further resources, each country's guide links to the website of the national tax agency and, when applicable, to the country's tax treaty with the United States. The country profiles are routinely reviewed and updated as needed. At the end of each, the month of the most recently required update is given. It is not uncommon for a country's tax rules on stock compensation to be unchanged for several years, so in some country guides no updates are needed for long periods.
In addition to the country-specific coverage in this guide, see also a related article series and an FAQ about international taxation in general for mobile employees. Another FAQ presents survey data on stock plans outside the United States. A different FAQ explains the tax-equalization programs through which some companies pay the foreign tax of employees on international assignments.
The taxation of stock compensation for mobile employees can be especially complex, especially when they work in two or more countries during the vesting period of equity awards. In a survey of multinational companies, 67% of the respondents reported that employees do not have a good understanding of how to benefit from equity compensation outside the United States (2015 Global Equity Incentives Survey by PricewaterhouseCoopers and the NASPP). Our Global Tax Guide is a valuable starting point for both stock plan participants and stock plan professionals who need to know about the taxation of stock compensation in the covered countries.
This guide can be a useful starting point and research tool, providing a general frame of reference on tax laws in each covered country. However, you should contact accountants, tax professionals, attorneys, and/or human-resources departments for advice on specific situations.
The contents of the Global Tax Guide should not be construed as legal, tax, or financial-planning advice on any specific facts or circumstances.Background of the Global Tax Guide
The Global Tax Guide was originally prepared by Louis Rorimer of the law firm Jones Day in Cleveland, Ohio, and was written to express his views and not necessarily the views of the law firm he is associated with. Mr. Rorimer is also the author of the two-volume book International Stock Plans. The Global Tax Guide is updated as needed by the staff of myStockOptions.com.