post A QUESTION
...in our Q&A service, and we will have one of our experts reply:
Expert Advice at your Fingertips
We reckon none of our competitors can match us for the accuracy of our information and the speed of our response. Test us out by asking us a question. We will send an email response to you as soon as we can, and publish the best questions on this page (with your details removed).
QUESTION INDIA VALUATION OF OPTIONS
Even though Fringe Benefit tax in India has been abolished and employees will now be taxed on the exercise of the option, is it correct that options still need to be valued by a Merchant Banker in India?
ANSWER
Yes, unfortunately, while employees will now be taxed at a rate of 33% on the difference between the option price and the market value of the shares on exercise, as most stock exchanges are not recognised by the Indian Central Government, a Merchant Banker in India will need to be appointed to value the underlying shares.
QUESTION RUSSIAN SHARE PLANS
I read recently that the new legislation makes operating employee share plans in Russia far easier and that no approvals are now required for offers to employees? Is this correct?
ANSWER
Unfortunately, the effects of the new legisaltion and their application to employee share plans is still unclear. Consequently, until this has been clarified companies should continue to exercise caution before operating any kind of share plan in Russia, particularly where it involves Russian nationals or newly issued shares.
