Employee share scheme (ESS) – cross border considerations

Do you know if the ESS interests you hold are taxable in Australia?

From 1 July 2009, the ESS rules have been significantly changed.  As part of the integrity measure, employers under the new rules are required to provide tax information about the ESS interests to both ATO and their employees.

However, the employers do not have to examine the employees’ individual circumstances to determine the taxable amount.  There are many instances where the taxable value should be reduced. For example, the shares or rights are granted prior to arrival to Australia.

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