23 September 2016 Japan expands scope of reporting requirements for stock based compensation Based on existing requirements, local employers are required to report stock based compensation derived by resident employees from the foreign parent company to the tax authority. As a reminder, the scope was expanded to include non-residents, with effect from the start of calendar year 2016. The reporting requirement for non-residents will lead to an additional administrative burden for companies. In certain cases, better exchange of information between Japanese entities and their foreign parent companies may be required to facilitate the preparation of the report. A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details. Document ID: 2016-1613 |
