Hi evryone
As we are based in Australia, but with a US Holding Company, it provides us with some unique challenges. We want to issue Options to both Australian staff and US staff out of our Options pool, but the tax regulations in each country are not-so-subtly different. In Australia we have to arrive at a strike price for the shares using a Safe Habour Valuation methodology every time we want to issue options. In the US we only need to do a 409A valuation if there is a material event. So, the challenge is that we can be issuing options to staff in the two countries but at very different strike prices. Also, the tax treatment of the options is very different in the two countries when employees exercise their options. In the US it creates a tax event with tax potentially payable to the IRS, but in Australia there is no tax payable on exercising options, only when the shares are sold.
It's been a steep learning curve, ut the Carta team has been fantastic at educating us about these nuances.
Cheers
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Original Message:
Sent: 4/13/2023 1:17:00 PM
From: Olivia Collins
Subject: QOTD: How's your week going?
Hello!
I'm Olivia Collins, Carta's Communications Manager. It's great to see so many new members in Carta Community this week!
I wanted to share this week's Question of the Day: How is your week going so far? What challenges are you currently working through that others can relate to?
Let us know in the comments below.
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Olivia Collins
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