Many developed countries offer tax advantages in relation to employee share schemes that meet certain criteria. However, the underlying principles and tax rules are extremely diverse.
US parent companies:
certain aspects of US schemes can be partly replicated in the UK. Example: a 15% discount in a US stock purchase plan can be mirrored with matching shares in a partnership share plan - though the latter's saving limit is normally much lower than the former.
Multiple international subsidiaries:
implementing tax efficient schemes in more than two or three territories is costly in advice and internal resources and rarely attempted. Normally a tax-efficient plan is adopted in one territory and replicated in other countries without the tax advantages.
International advice:
several of the major accounting and law firms offer "one-stop" international consultancy but it is important that there is genuine co-operation between the relevant branches of the firm.
Internationally mobile employees:
there may be tax planning opportunities through the use of legitimate dual contracts or discretionary trusts. The UK offers a particularly favourable environment for non-domiciled residents.
Further help and information on employee share schemes
For detailed guidance on all aspects of the design, implementation and administration of employee share schemes see "Employee Share Schemes: a Guide for Directors" (2006/07 edition). You can view the Guide online or order a free copy here. Or ask for a free consultation.
