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4min chapter
Tax Withholding Practices for Equity Awards
Equity Expert: A Podcast from the NASPP
The Different Approaches to Tax Withholding
Determining local tax withholding rates can be a real challenge for companies that offer equity outside their headquarter country. The most common approach is to withhold at the maximum individual rate, but this represents only 38% of respondents. 32% rely on their local payroll teams to provide an appropriate tax rate and 30% use statutory or supplemental rates. And then another 30% set a flat rate that is lower than themaximum individual rate.
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