Employee Share Schemes

They incentivise and motivate employees to contribute to the growth and profitability of the company. In the global demand for talent, share schemes are increasingly becoming a component of salary packages in New Zealand. Given significant legislative reform in this area, it is important to ensure that the plan is up to date for the existing tax landscape and continues to meet the strategic objectives of the business.

We work with widely held companies to manage the risks associated with providing share scheme benefits including the timing of reporting the income to Inland Revenue and the associated tax obligations. We support privately held companies and start-up businesses with succession planning and market value considerations with a view to ensuring that participation does not create unforeseen or understood tax liabilities for employees. We also work with employees receiving share scheme benefits to manage their tax compliance obligations on a timely basis.

Our services cover a full spectrum of tax support including:

• Advising on reporting and disclosure obligations for employers
• Advising on design and alternatives for development of new share schemes
• ESS health check - Reviewing existing plan documentation from a governance perspective
• Advising on tax impacts of the existing plans and compliance obligations for the company
• Redesigning existing plans for new tax framework
• Share awards to contractors or outside of employment arrangements
• Preparing summaries for participants to ensure that their tax obligations are understood and managed
• Employee share scheme presentations to participants
• Managing cross border considerations and trailing share impact for employees and employers
• Advising vendors and purchasers of the impact of existing schemes in M&A transactions
• Working with KPMG accounting and valuation experts to provide a full suite solution
• Succession planning for privately held companies and managing the entry and exit of shareholders