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Transactions through foreign brokerage companies now allowed for foreign listed stocks acquired through stock compensation plans
Following efforts of the ECCK and a position paper submitted in December 2023 by the ECCK Tax Committee on behalf of ECCK member companies, a Presidential Decree regarding Partial Amendments of the Foreign Exchange Transactions Act was announced on March 5.
The announcement confirms that foreign listed stocks acquired through stock based compensation plans can be traded through both domestic and foreign brokerage companies. Previous announcements by the Financial Supervisory Services had made it unclear whether trading such stocks through foreign brokers was allowed. The Presidential Decree also confirms that any stocks previously traded through foreign brokers before the amendment will not be subject to any penalties. Note however that if sale proceeds are deposited in a foreign bank or brokerage account, not in a domestic bank account, it should be reported through a foreign exchange bank.
The confirmation that foreign stocks acquired through stock based compensation plans can be traded through foreign brokers is welcomed by the ECCK in that it provides member companies with much needed certainty on this important issue.
For further details, please find the official Press Release from the Financial Supervisory Service. ( HERE )
Transactions through foreign brokerage companies now allowed for foreign listed stocks acquired through stock compensation plans
Following efforts of the ECCK and a position paper submitted in December 2023 by the ECCK Tax Committee on behalf of ECCK member companies, a Presidential Decree regarding Partial Amendments of the Foreign Exchange Transactions Act was announced on March 5.
The announcement confirms that foreign listed stocks acquired through stock based compensation plans can be traded through both domestic and foreign brokerage companies. Previous announcements by the Financial Supervisory Services had made it unclear whether trading such stocks through foreign brokers was allowed. The Presidential Decree also confirms that any stocks previously traded through foreign brokers before the amendment will not be subject to any penalties. Note however that if sale proceeds are deposited in a foreign bank or brokerage account, not in a domestic bank account, it should be reported through a foreign exchange bank.
The confirmation that foreign stocks acquired through stock based compensation plans can be traded through foreign brokers is welcomed by the ECCK in that it provides member companies with much needed certainty on this important issue.
For further details, please find the official Press Release from the Financial Supervisory Service. ( HERE )