Compensation Tax

Effective employee remuneration is critical to business success. Tax, and regulatory rules are increasingly complex and constantly changing. Taxand’s global compensation tax team provides proactive tax advice, regulatory oversight and best practice expertise.

Tax efficient incentive plans (examples include annual cash bonus plans, deferred cash bonus plans, stock option plans, restricted stock and restricted stock unit plans, profit sharing arrangements, sales incentives, retention plans) and global tax compliance are vital if the maximum value is to be achieved for both employers and employees.

Practical advice to help you keep your people

The sensitive nature of employee compensation means that operational accuracy and compliance is essential. Errors can be costly as they result in reputational damage as well as financial loss. As tax authorities across the globe increasingly co-operate with each other, disclosure demands escalate and tax and social security rates rise worldwide, companies need to take even greater care to achieve compliance across borders. Our Taxand advisors provide a “hands on” service to ensure remuneration plans work in practice not just theory, wherever you deploy your people.

Integrated approach to optimise value

At Taxand we work closely with our clients recognising that remuneration plans need to be effective for all stakeholders – employers, employees, shareholders as well as payroll and administration teams. We don’t just focus on tax compliance. We provide an integrated service combining tax, financial and human resources requirements. We are able to provide views on the latest compensation trends and the international regulatory environment. Our approach aims to optimise value for all parties through effective and tax compliant reward programmes.

We deliver a range of compensation related services with a global focus:

  • Long and short-term global equity (eg stock options, performance share plans, restricted share plans, restricted stock units)
  • Performance condition design and modelling
  • Employer and employee tax, social security, withholding and compliance due diligence
  • Global corporate tax deductibility optimisation
  • Employee communication and engagement programmes
  • Equity awards for international assignees
  • Cash and equity plan implications on change of control
  • Vendor selection

Our multidisciplinary team of compensation tax specialists design and implement pragmatic solutions that optimise tax efficiencies whilst delivering tailored strategic reward objectives for multinationals.

Our independence advantage means we can act quickly to deliver the answers you require and focus on developing long-term relationships delivering mutual benefit.

Our core team of employment tax and equity plan specialists is supported by our experienced corporate tax colleagues, cash and equity plan professionals. Discover how Taxand can deliver your compensation tax advantage.