Guidelines have been issued regarding the implementation of overseas stock bonus programs.
The State Bank of Vietnam has issued Circular 23/2023/TT-NHNN amending and supplementing a number of articles of Circular No. 10/2016/TT-NHNN guiding some contents of Decree No. 135/2015/ND-CP dated December 31, 2015 of the Government on indirect investment abroad.
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Circular 23/2023/TT-NHNN amends and supplements Article 8 on the principles for implementing the program of awarding shares issued abroad.
Accordingly, the implementation of a stock bonus program for overseas-issued shares must ensure the following principles:
Stock bonus programs issued overseas that are open to Vietnamese employees can only be implemented through the organization implementing the stock bonus program.
Foreign currency earned from dividends and other legitimate income related to overseas stock bonus programs must be transferred to Vietnamese employees through the program account specified in Article 12 of this Circular.
Comply with regulations on foreign exchange management, income tax obligations, and other relevant provisions of Vietnamese law.
Compared to current regulations, Circular 23/2023/TT-NHNN has removed the requirement for registration confirmation from the State Bank of Vietnam before implementing a stock bonus program for overseas-issued shares.
In addition, Circular 23/2023/TT-NHNN also amends and supplements Article 9 regarding forms of reward:
1. Direct bonus in the form of shares.
2. Other forms of stock awards abroad do not generate cash outflows overseas.
Circular 23/2023/TT-NHNN adds other forms of stock bonuses abroad that do not generate outflows of funds, whereas current regulations only address direct stock bonuses and stock option bonuses with preferential conditions.
This circular takes effect from August 12, 2024.
Source: https://baodautu.vn/da-co-huong-dan-ve-viec-thuc-hien-chuong-trinh-thuong-co-phieu-phat-hanh-o-nuoc-ngoai-d219817.html
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