Employee Incentives, Tax & Benefits
Expert advisory on share option schemes, equity compensation, tax-efficient benefits, and MPF arrangements for employers and employees in Hong Kong.
Our Employee Incentives, Tax & Benefits Services
Share Option Schemes & Equity Compensation
- Designing and drafting share option plans, restricted share unit schemes, and share award programmes
- Advising on Hong Kong Stock Exchange listing rule requirements for equity incentive plans
- Structuring equity grants to optimise tax treatment under Hong Kong salaries tax
- Advising on vesting schedules, performance conditions, and exercise mechanics
- Handling the tax reporting obligations associated with equity compensation
- Advising on the treatment of equity awards upon termination of employment
Bonus Structures & Deferred Compensation
- Designing discretionary and formulaic bonus programmes
- Structuring deferred compensation arrangements to align with business objectives
- Advising on clawback provisions and malus arrangements
- Drafting bonus plan documentation and participant communications
- Handling disputes over bonus entitlements and discretionary payments
MPF Arrangements & Retirement Benefits
- Advising on employer obligations under the Mandatory Provident Fund Schemes Ordinance
- Structuring voluntary MPF contributions and top-up arrangements
- Advising on the tax treatment of MPF contributions and benefits
- Handling MPF scheme selection and trustee appointment matters
- Advising on Occupational Retirement Schemes Ordinance (ORSO) registered schemes
- Managing the transition between retirement benefit arrangements
Tax-Efficient Compensation Planning
- Structuring remuneration packages to optimise Hong Kong salaries tax exposure
- Advising on the tax treatment of housing benefits, share-based payments, and perquisites
- Planning compensation structures for internationally mobile employees
- Advising on section 8 salaries tax obligations and exemptions
- Coordinating tax planning with employment law and immigration requirements
Employee Benefit Trusts & Phantom Equity
- Establishing and administering employee benefit trusts for equity incentive plans
- Designing phantom equity and cash-settled incentive arrangements
- Advising on the accounting, tax, and regulatory treatment of trust-based arrangements
- Structuring carried interest arrangements for fund management professionals
- Advising on the interaction between trust structures and employment law obligations
International Employee Taxation
- Advising on the Hong Kong tax obligations of inbound and outbound assignees
- Structuring tax equalisation and tax protection programmes
- Coordinating with overseas tax advisers on multi-jurisdictional tax planning
- Advising on double taxation agreement relief and foreign tax credits
- Handling Inland Revenue Department enquiries and assessments relating to international employment
Our Approach
Tailored Programme Design
Regulatory Compliance
Cross-Border Coordination
Commercial Pragmatism
