2018 Global Employee Equity at a glance: United Arab Emirates | White & Case LLP International Law Firm, Global Law Practice
2018 Global Employee Equity at a glance: United Arab Emirates

2018 Global Employee Equity at a glance: United Arab Emirates

Welcome to the United Arab Emirates page of our Global Employee Equity at a glance series. To view other countries in this series, please visit our 2018 Global Employee Equity at a glance page.

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TABLE OF CONTENTS

Stock Option Plans
Employment
Regulatory
Tax

Restricted Stock and RSUs
Employment
Regulatory
Tax

Employee Stock Purchase Plans
Employment
Regulatory
Tax

 

Stock Option Plans: Employment

Labor Concerns

There is a risk of employees claiming that they are entitled to compensation for loss of rights under the Plan where the Plan is amended or discontinued or where their employment is terminated.

Communications

Although there is no requirement to do so, it is recommended that the Plan documents be translated.

Governmental filings must be made in Arabic.

Electronic execution of award agreements by employees is generally acceptable.

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Stock Option Plans: Regulatory

Securities Compliance

Neither the grant nor the exercise of Options is likely to trigger any prospectus requirements.

Certain restrictions may apply if the Subsidiary is incorporated or registered in the Dubai International Financial Centre.

Foreign Exchange

There are no foreign exchange restrictions applicable to the Plan.

Data Protection

Processing of employee data for purposes directly connected to the employment relationship can generally be justified on the basis that the processing is necessary to fulfill the contract of employment. Purposes outside that category need to be assessed on a case-by-case basis and opt-in consent may be required in some cases. In all cases, companies should provide employees with a privacy notice describing what personal data is being collected and how the data is being used (including details of data sharing with third parties).

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Stock Option Plans: Tax

Employee Tax Treatment

An employee is not subject to tax in relation to the Plan.

Social Security Contributions

Social security contributions are not due from either the Subsidiary or the employee.

Tax-Favored Program

There is no tax-favored program applicable to Stock Option Plans.

Withholding and Reporting

The Subsidiary has no withholding or reporting obligations.

Employer Tax Treatment

A deduction is not applicable.

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Restricted Stock and RSUs: Employment

Labor Concerns

There is a risk of employees claiming that they are entitled to compensation for loss of rights under the Plan where the Plan is amended or discontinued or where their employment is terminated.

Communications

Although there is no requirement to do so, it is recommended that the Plan documents be translated.

Governmental filings must be made in Arabic.

Electronic execution of award agreements by employees is generally acceptable.

[Go back to top of page]

 

Restricted Stock and RSUs: Regulatory

Securities Compliance

Neither the grant nor the vesting of Restricted Stock or RSUs is likely to trigger any prospectus requirements.

Certain restrictions may apply if the Subsidiary is incorporated or registered in the Dubai International Financial Centre.

Foreign Exchange

There are no foreign exchange restrictions applicable to the Plan.

Data Protection

Processing of employee data for purposes directly connected to the employment relationship can generally be justified on the basis that the processing is necessary to fulfill the contract of employment. Purposes outside that category need to be assessed on a case-by-case basis and opt-in consent may be required in some cases. In all cases, companies should provide employees with a privacy notice describing what personal data is being collected and how the data is being used (including details of data sharing with third parties).

[Go back to top of page]

 

Restricted Stock and RSUs: Tax

Employee Tax Treatment

An employee is not subject to tax in relation to the Plan.

Social Security Contributions

Social security contributions are not due from either the Subsidiary or the employee.

Tax-Favored Program

There is no tax-favored program applicable to restricted stock or RSU plans.

Withholding and Reporting

The Subsidiary has no withholding or reporting obligations.

Employer Tax Treatment

A deduction is not applicable.

[Go back to top of page]

 

Employee Stock Purchase Plans: Employment

Labor Concerns

There is a risk of employees claiming that they are entitled to compensation for loss of rights under the Plan where the Plan is amended or discontinued or where their employment is terminated.

Communications

Although there is no requirement to do so, it is recommended that the Plan documents be translated.

Governmental filings must be made in Arabic.

Electronic execution of award agreements by employees is generally acceptable.

[Go back to top of page]

 

Employee Stock Purchase Plans: Regulatory

Securities Compliance

Neither the grant nor the exercise of purchase rights will trigger any prospectus requirements.

Certain restrictions may apply if the Subsidiary is incorporated or registered in the Dubai International Financial Centre.

Foreign Exchange

There are no foreign exchange restrictions applicable to the Plan.

Data Protection

Processing of employee data for purposes directly connected to the employment relationship can generally be justified on the basis that the processing is necessary to fulfill the contract of employment. Purposes outside that category need to be assessed on a case-by-case basis and opt-in consent may be required in some cases. In all cases, companies should provide employees with a privacy notice describing what personal data is being collected and how the data is being used (including details of data sharing with third parties).

[Go back to top of page]

 

Employee Stock Purchase Plans: Tax

Employee Tax Treatment

An employee is not subject to tax in relation to the Plan.

Social Security Contributions

Social security contributions are not due from either the Subsidiary or the employee.

Tax-Favored Program

There is no tax-favored program applicable to employee Stock Purchase Plans.

Withholding and Reporting

The Subsidiary has no withholding or reporting obligations.

Employer Tax Treatment

A deduction is not applicable.

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2018 Global Employee Equity at a glance

Employment, Compensation & Benefits practice group

 

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