I hope most of you have seen our client alert on the recent Israeli Supreme Court ruling that confirmed that stock-based compensation has to be included in the cost base of Israeli subsidiaries of multinational companies. As a result of the decision, we have already seen a flurry of activity as many companies are evaluating how to obtain a tax deduction for awards granted to Israeli employees. As a reminder, for companies with a cost-plus…
When granting equity awards, one of the most important questions is the tax effect of such awards. Granting awards that have a negative tax impact on the employee or the company is counter-productive and should lead companies to consider other ways to incentivize their employees. On the other hand, should companies maximize the availability of favorable tax treatment for equity awards in certain countries? This is not an easy question to answer. Favorable Tax Treatment…