the more things change… china safe may 2013. introductions background −registration of equity...
TRANSCRIPT
The more things change…
China SAFE
MAY 2013
•Introductions•Background
− Registration of equity programs required before offers can be made
− Repatriation requirement and responsibility for enforcement
− Approval certificate and special-purpose foreign exchange account(s)
− Circular 7 streamlining… not so much?
… the more they stay the same?
2
•Employee demand / retention concerns•Cost analysis of filing and ongoing resources•Alternatives without SAFE filing
•And where to file?
Deciding to file
3
• Application letter and new registration form• Some standardization/simplification of supporting
documents and “proof” of plans, e.g., SEC forms and EDGAR screenshots
• Undertaking letter, eligible employees, and non-PRC nationals?
• Local entity information• Review planned implementation with broker/stock plan
administrator
Preparing the application under Circular 7
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• Looking back at past grants, past plans, past approvals
• Fund flow conversion (or not)• Tax withholding procedures• Treatment of grants post-termination• Local entity changes
Increased SAFE scrutiny?
5
• Internal administrative processes• Coordination of US entity, broker, finance team, local
payroll, individual participants, etc.• Tax payment and reimbursement
Practical implementation considerations
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• Annual outbound quota renewals• Quarterly statistical reporting• Notification of changes regarding plans, award terms,
corporate structure
Compliance going forward under Circular 7
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• Kim MalviciniAlexion [email protected]
• Keith [email protected]
• Joyce ChenOrrick, Herrington & Sutcliffe [email protected]
Questions?
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