Share incentive schemes are one of the most important performance based remuneration systems for senior/executive managers and fund managers. In South African share based payments are also used to address the imbalances of the past. Different share schemes have different tax implications for the entity involved, for instance, the share trust where a trust is used as a vehicle to issue the instruments to employees have tax implications for the employees receiving the instruments.
Our tax specialists can assist with advising on the tax implications of share incentive schemes for all parties during the drafting of the share scheme agreements to ensure efficiency of the tax charge. We provide advice on the restructuring of B-BBEE related share schemes and non-B-BBEE schemes as well as assisting with the application for rulings from SARS where applicable.