Guidance on the implementation of overseas share bonus programs is available.

Guidance on the implementation of overseas share bonus programs is available.

The State Bank has issued Circular 23/2023/TT-NHNN amending and supplementing a number of articles of Circular No. 10/2016/TT-NHNN guiding a number of contents prescribed in Decree No. 135/2015/ND-CP dated December 31, 2015 of the Government regulating indirect investment abroad.

Circular 23/2023/TT-NHNN amends and supplements Article 8 on principles for implementing the program of rewarding shares issued abroad.

Accordingly, the implementation of the program to reward shares issued abroad must ensure the following principles:

A stock award program issued abroad with participants being Vietnamese employees can only be implemented through an organization implementing the stock award program.

Foreign currency collected from dividends and other legal income related to the overseas stock bonus program must be transferred to Vietnamese employees through the program implementation account specified in Article 12 of this Circular.

Comply with regulations on foreign exchange management, income tax obligations and other relevant regulations of Vietnamese law.

Compared to current regulations, Circular 23/2023/TT-NHNN has removed the requirement for confirmation of registration by the State Bank before implementing a program to reward shares issued abroad.

In addition, Circular 23/2023/TT-NHNN also amends and supplements Article 9 on bonus forms:

1- Direct bonus in shares.

2- Other forms of stock awards abroad do not generate cash flows abroad.

Circular 23/2023/TT-NHNN adds other forms of stock awards abroad that do not generate cash flows abroad. Current regulations only mention direct stock awards and stock purchase rights awards with preferential conditions.

This Circular takes effect from August 12, 2024.

Source: https://baodautu.vn/da-co-huong-dan-ve-viec-thuc-hien-chuong-trinh-thuong-co-phieu-phat-hanh-o-nuoc-ngoai-d219817.html