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  • Restricted stock and RSUs

    Securities

    As long as:

    • The offer is not advertised or publicized
    • The stock is not traded in Argentina
    • The offer is limited to employees
    • The offer is intended to compensate employees and not to raise capital, no securities law requirements apply

    Foreign exchange

    There are no foreign exchange restrictions applicable to restricted stock or RSUs.

    Tax

    Employee

    The employee is taxed on restricted stock upon grant and on RSUs upon vesting (may include personal assets tax).

    The employee is subject to a flat tax of 15% on any net gain resulting from the sale of the shares by Argentine Tax residents, or, alternatively, 13.5% on the gross sale price by non-residents.

    Employer

    Withholding & reporting

    Tax withholding and reporting are required upon grant for restricted stock and upon vesting of RSUs.

    Deduction

    Argentine subsidiaries are allowed to deduct the amount reimbursed to the parent company for the cost of the benefits if a Reimbursement or Recharge Agreement is in place.

    Social insurance

    Social insurance contributions are generally payable by the employee and employer.

    Data protection

    Obtaining an employee's written consent for the processing and transfer of his or her personal data is the most common approach to comply with certain aspects of data protection requirements. The employer also is required to register any database that includes an employee's personal data with the Argentine privacy authorities.

    Labor

    Benefits received from restricted stock or RSUs may be considered part of the employment relationship and included in a severance payment if the awards are repeatedly granted to an employee. Upon involuntary termination of employment, an employee may be entitled to continued vesting and other rights with respect to his or her award. In order to reduce the risk of employee claims, the award agreement signed by an employee should provide, among other things, that vesting of restricted stock or RSUs ceases upon termination of employment, and that the plan and any awards under it are discretionary.

    Communications

    Although plan materials are not required to be translated into Spanish, it is recommended, to ensure that employees understand the terms of their awards. Award materials should be addressed to individual employees in order to avoid securities law requirements.

  • Stock options

    Securities

    As long as:

    • The offer is not advertised or publicized
    • The stock is not traded in Argentina
    • The offer is limited to employees
    • The offer is intended to compensate employees and not to raise capital, no securities law requirements apply

    Foreign exchange

    There are no foreign exchange restrictions applicable to option plans.

    Tax

    Employee

    The employee is taxed on the spread upon exercise (including personal assets tax, if applicable). 

    The employee is subject to a flat tax of 15% on any net gain resulting from the sale of the shares by Argentine Tax residents, or alternatively 13.5% on the gross sale price by non-residents.

    Employer

    Withholding & reporting

    Tax withholding and reporting are required upon exercise.

    Deduction

    Argentine subsidiaries are allowed to deduct the amount reimbursed to the parent company for the cost of the benefits if a Reimbursement or Recharge Agreement is in place.

    Social insurance

    Social insurance contributions are generally payable by the employee and employer when an option is exercised.

    Data protection

    Obtaining an employee's written consent for the processing and transfer of his or her personal data is the most common approach to comply with certain aspects of data protection requirements. The employer is also required to register any database that includes an employee's personal data with the Argentine privacy authorities.

    Labor

    Benefits received from an option may be considered part of the employment relationship and included in a severance payment if options are repeatedly granted to an employee. Upon involuntary termination of employment, an employee may be entitled to continued vesting and other rights with respect to his or her option. In order to reduce the risk of employee claims, the award agreement signed by an employee should provide, among other things, that vesting of an option ceases upon termination of employment, and that the plan and any awards under it are discretionary.

    Communications

    Although plan materials are not required to be translated into Spanish, it is recommended, to ensure that employees understand the terms of their awards. Award materials should be addressed to individual employees in order to avoid securities law requirements.

  • Stock purchase rights

    Securities

    As long as:

    • The offer is not advertised or publicized
    • The stock is not traded in Argentina
    • The offer is limited to employees
    • The offer is intended to compensate employees and not to raise capital, no securities law requirements apply

    Foreign exchange

    There are no foreign exchange restrictions applicable to stock purchase rights.

    Tax

    Employee

    The employee is taxed on the spread upon purchase.

    The employee is subject to a flat tax of 15% on any net gain resulting from the sale of the shares by Argentine Tax residents, or, alternatively, 13.5% on the gross sale price for non-residents.

    Employer

    Withholding & reporting

    Tax withholding and reporting are required upon purchase.

    Deduction

    Argentine subsidiaries are allowed to deduct the amount reimbursed to the parent company for the cost of the benefits if a Reimbursement or Recharge Agreement is in place.

    Social insurance

    Social insurance contributions are generally payable by the employee and employer when the shares are purchased.

    Data protection

    Obtaining an employee's written consent for the processing and transfer of his or her personal data is the most common approach to comply with certain aspects of data protection requirements. The employer also is required to register any database that includes an employee's personal data with the Argentine privacy authorities.

    Benefits received from a purchase right may be considered part of the employment relationship and included in a severance payment if purchase rights are repeatedly granted to an employee. Upon involuntary termination of employment, an employee may be entitled to continued participation in the plan. In order to reduce the risk of employee claims, the offer document signed by an employee should provide, among other things, that participation in the plan ceases upon termination of employment, and that the plan and any awards under it are discretionary.

    In light of restrictions on payroll deductions, alternative arrangements may be necessary for contributions to the plan.

    Labor

    Not applicable.

    Communications

    Although plan materials are not required to be translated into Spanish, it is recommended, to ensure that employees understand the terms of their awards. Award materials should be addressed to individual employees in order to avoid securities law requirements.

  • Key contacts
    Guillermo Cabanellas
    Guillermo Cabanellas
    Senior Partner DLA Piper (Argentina) [email protected] T +5411 41145500 View bio
    Augusto Nicolás Mancinelli
    Augusto Nicolás Mancinelli
    Of Counsel DLA Piper (Argentina) [email protected] T +5411 41145500 View bio
    Dean Fealk is the global contact for Global Equity.
    Dean Fealk is the global contact for Global Equity.
    [email protected] View bio

Stock options

Communications

Argentina

Although plan materials are not required to be translated into Spanish, it is recommended, to ensure that employees understand the terms of their awards. Award materials should be addressed to individual employees in order to avoid securities law requirements.

Australia

Translation

There are no translation requirements. Any filing with the government must be in English.

Electronic communication

It is permissible to execute award agreements electronically.

Austria

Although plan materials are not required to be translated, translation is required for any government filing, and is recommended to ensure that employees understand the terms of their awards.

Belgium

Translation

There is in Belgium specific legislation on the use of languages in employment matters, requiring the use of French for the Walloon region, Dutch for the Flemish region, and French for the French speaking workers and Dutch for the Dutch speaking workers for the Brussels region. This legislation applies nevertheless only to communication between the employer and the worker, hence not to communication between any other entity (notably the foreign parent company) that would grant stock options. Any filing with the government may be required in French or Dutch.

Electronic communication

In some circumstances, it may be acceptable for award agreements to be electronically executed.

Brazil

Although plan materials are not required to be translated, translation is required for any government filing, and is recommended to ensure that employees understand the terms of their awards.

Canada

Translation

Unless an employee in Quebec waives his or her right to receive plan materials in French, such materials must be translated into French.

Electronic communication

It should be feasible for an employee to execute his or her award agreement electronically.

Chile

The Labor Authority has asserted that plan materials should be translated; however, translation is not legally required. Government filings and any employee consent authorizing the cross-border transfer of personal data must be in Spanish.

China

Any filing with the government must be translated.

Colombia

Translation

It is not mandatory to have the respective documents translated into Spanish if all employees are proficient in English. However, Spanish is strongly advisable as the Colombian authorities could require any employment related document to be in Spanish or translated into Spanish (by a certified translator) and duly apostilled (if applicable).

Electronic communication

It is not mandatory for an employee to be able to execute his or her award agreement electronically.

Czech Republic

Although not required, translation of documents is recommended.  Any filing with the government is required to be translated.

Denmark

Employers must provide a summary of their employees' rights under the 2004 Danish Stock Option Act in local language. Government filings must be translated.

Ecuador

Although not required, translation of the plan documents is recommended.  Any filings with the government are required to be translated.

Egypt

Although not required, it is recommended that plan documents be translated. Any filings with the government are required to be translated in Arabic.

Finland

Although not required, translation of plan documents is recommended, as a contract may be unenforceable if it is concluded in a language that the participant cannot understand.

France

Although not required, translation of plan documents is recommended, as a contract may be unenforceable if it is concluded in a language that the participant cannot understand.

Germany

Translation

Although not required, it is recommended that documents regarding option plans be translated. Any filings with the government are required to be translated.

Electronic communication

It should be valid for an employee to execute the award agreement electronically.

Greece

Translation

Translation is not required, so long as the employees acknowledge that they understand the grant materials. Any filings with the government are required to be translated.

Electronic communication

It should be valid for an employee to execute the award agreement electronically.

Hong Kong

If the employee has limited proficiency in English, it is recommended that plan documents be translated into Chinese.

Hungary

Translation

Although it is not legally required, it is recommended that documents regarding employee option plans be translated.

Electronic communication

It is generally acceptable for award agreements to be electronically executed.

India

There are no translation requirements. Any filing with the government must be in English.

Indonesia

Although not legally required, it is recommended that documents regarding option plans be translated. Any filing with the government must be translated.

Ireland

Translation

All government filings must be in English.

Electronic communication

It should be valid for an employee to execute the award agreement electronically.

Israel

Translation of plan-related materials may be required to satisfy securities requirements, if applicable. Any government filings are required to be translated. For labor law purposes, translation is required if English is not the language used in general for communications with employees.

Italy

Although not required, it is recommended that all documents regarding option plans be translated. Any government filings are required to be translated.

Japan

Although not legally required, it is recommended that documents regarding employee option plans be translated. All government filings are required to be translated.

Malaysia

Translation

With the exception of the written notice required under the PDPA, there is no legal requirement for the plan materials to be translated into Bahasa Malaysia. However, for employees who are literate in a language other than English, it is recommended for the documents to be provided in that language.

Electronic communication

With the exception of the written notice required under the PDPA, there is no legal requirement for the plan materials to be translated into Bahasa Malaysia. However, for employees who are literate in a language other than English, it is recommended for the documents to be provided in that language.

Mexico

Translation

Although it is not legally required, it is recommended that documents regarding employee option plans be translated. All government filings are required to be translated.

Electronic communication

It should be valid for an employee to execute the award agreement electronically.

Netherlands

Translation

A translation of the plan is not required. However, the local tax authorities may require a translation if the plan is submitted for a tax ruling. A translation may further be recommended to ensure that employees understand the terms of their awards.

Electronic communication

It is generally acceptable for award agreements to be electronically executed.

New Zealand

Generally, the offering document must be in English.

Norway

Although it is not legally required, it is recommended to translate documents regarding employee stock plans. Any filings with the government are required to be in Norwegian or English.

 

Philippines

Documents regarding employee stock plans may be in English and there is no legal requirement that such document be translated. Any filing with the government may be, and is usually in English.

Poland

Although not legally required, it is recommended that documents regarding employee option plans be translated. Any filing with the government must be translated.

Portugal

Translation

Although not legally required, it is recommended that documents regarding employee option plans be translated. Any filing with the government must be translated.

Electronic communication

In most circumstances, it is acceptable for award agreements to be electronically executed.

Russia

Although not legally required, it is recommended that documents regarding employee option plans be translated. Any filing with the government must be translated.

Saudi Arabia

Although not legally required, it is recommended that documents regarding employee option plans be translated. Any filing with the government must be translated.

Singapore

There are no translation requirements. Any filing with the government must be in English.

Slovak Republic

Translation

The Slovak Act on State Language requires the written legal acts within the labor law or similar legal relationships to be executed in the Slovak language. Such documents may be bilingual.

Electronic communication

In some circumstances, it may be acceptable for award agreements to be electronically executed.

South Africa

Although not legally required, it is recommended that documents regarding employee option plans be translated. Any government filings must be translated.

South Korea

Although not legally required, it is recommended that the plan documents be translated. Any government filings are required to be translated.

Spain

Translation

Although not legally required, it is recommended that documents regarding employee option plans be translated. Any government and legal filings are required to be translated.

Electronic communication

In some circumstances, it may be acceptable for award agreements to be electronically executed.

Sweden

The translation of option plan documents is not required, unless requested by an employee. Any government filings are required to be translated.

Switzerland

Although it is not legally required, it is recommended that documents regarding employee option plans be translated. Any filings with the government are required to be translated.

Taiwan

Although not legally required, it is recommended that documents regarding employee option plans be translated (especially for employees who are not fluent in English). Any filings with the government are required to be translated.

Thailand

Although not legally required, it is recommended that supporting documents regarding employee option plans be translated. Any filings of official forms with the government are required to be in Thai.

Turkey

Since stock option plans may be considered as a part of the employment contracts, translation of such documents into Turkish is required.

United Kingdom

Translation

Employee communications are not subject to any specific legal requirements.

Electronic communication

In some circumstances, it may be acceptable for award agreements to be electronically executed.

Venezuela

Although not legally required, it is recommended that documents regarding employee plans be translated. Any filings with the government are required to be translated.

Vietnam

Although not legally required, it is recommended that documents regarding stock option plans be translated. Any filings with the SBV and other competent authorities are required to be made in Vietnamese.