Tax Headline Data / Stock Option Plan / Algeria

Grant

• There are no income or social security taxes.

Exercise

• There are no income or social security taxes.

Sale

• There are no income, social security or capital gain taxes.

Other / Notes

Additional Issues - Note

The tax implications of share awards have not been addressed here. Refer to the Legal Report - Exchange Controls section for further information.

Non-Employees

If the Participant is engaged as an employee through a Professional Employer Organisation (PEO) or other Employer of Record (EoR) then the above tax treatment will typically apply save that the PEO or EoR will be responsible for accounting to the tax authorities for any withheld taxes.  The terms of the engagement between the Company and the PEO or EoR should provide for how these taxes will be accounted for.

If the Participant is engaged as a consultant then, typically, all taxes arising in connection with the Award should ordinarily be for the account of the Participant and there should be no withholding obligation. The Participant should be encouraged to seek independent advice on their own tax position. Before adopting this tax treatment, however, the Company should carefully consider the correct status of the Participant: it is a question of fact whether the Participant is engaged as an employee or a consultant and the tax authorities may seek unpaid withholding taxes if the Company gets this wrong.

Special employee tax advantaged arrangements are not generally available either to consultants or to employees engaged via a PEO or EoR.