Equity based compensation plan

Equity based compensation plan, such as employee share option plan ('ESOP'), employee share award plan ('ESAP'), and employee share purchase plan ('ESPP'), are becoming a regular feature making up an employee's remuneration package. Many companies are recognizing the value of these schemes in times of both economic boom as well as economic downturn i.e., they lock employees into the company and are often cost effective.

What can PwC Workforce Tax help you?

Our Equity Planner specialists are experienced in providing tailor-made solutions to companies who offer an equity stake to their employees.

Services include:

• Design and implementation of ESOP, ESAP, and ESPP
• Tax and legal due diligence review of existing shares schemes
• Staff communication
• Benchmark local trends / best practices
• Share scheme administration
• Assisting in handling enquiries issued by the tax authorities on the share schemes
• Submission of the equity based compensation plan to the tax authorities, including clarification on the applicable tax treatment
• Equity based compensation plan registration with the foreign exchange authorities (China only)