Law N° 27802, art. 105, has been published on March 6, and it stipulates that stock option and other equity plans are now considered exempt from social security contributions.
The change clarifies that certain employer-provided equity benefits are excluded from contributory remuneration.
Key details:
Law 27,802 – Section 105: forms of payment and supplementary benefits
Salary must be paid in money, either in local or foreign currency.
Supplementary benefits that do not qualify as social benefits under Section 103 bis of this la—whether in cash or in kind—are considered part of the employee’s remuneration, except for:
Profit-sharing or gain-sharing schemes, equity rights, dividend collection, and the realization of shares or securities granted by the employer during the term of the employment contract, as agreed by the parties or voluntarily decided by the employer, at the time and under the terms defined by the employer, in accordance with the applicable commercial law regulations in each case and within the limits established by the Enforcement Authority.
Employers may benefit from a zero social security cost when granting qualifying equity-based compensation, as certain instruments are excluded from the contribution base. This change enhances the attractiveness of equity plans as a tax-efficient tool for employee compensation and retention, particularly for senior employees.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Lilian Andrea Falcon
Director
Javier Ignacio Fernandez Biondi
Senior Manager
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