Stock Plans in South Africa

Summary Table
(Updated as of August 2024)

Offering stock awards to employees in South Africa can be complicated. A securities prospectus filing is required unless an exemption applies. Most companies are able to rely on an exemption, although special disclosure to plan participants may be required.

The stock plan must be registered with the Financial Surveillance Department; department approval may be required for any remittances made by participants to purchase shares and annual limits on remittance amounts apply.

The income is subject to employer income reporting and tax withholding; a withholding directive should be obtained from the South Africa Revenue Service in advance for each transaction.

The South African tax year is from March 1 to February 28 of the following year.

Overview of Stock Plans in South Africa