Why International Companies with Australian Participants Need to Prioritise ESS Tax Reporting to the ATO – And How BoardRoom Can Help
If your company is listed outside of Australia but has employees or participants based in Australia receiving equity through an Employee Share Scheme (ESS), there’s one crucial obligation you can’t afford to overlook: Australian ESS tax reporting. Each year, companies must report ESS data to the Australian Taxation Office (ATO) by 14 July and provide ESS statements to participants—a compliance requirement that applies regardless of where your company is headquartered or listed.
What Is ESS Tax Reporting?
Employee Share Scheme (ESS) tax reporting is a mandatory annual compliance obligation for companies that provide shares, rights, or options to their employees under an ESS in Australia. It requires employers to identify and report specific taxable events related to these employee equity awards. This involves providing an ESS statement to each affected employee by 14 July annually, detailing their interests and any taxable discounts, and lodging a comprehensive ESS annual report electronically with the Australian Taxation Office (ATO) by 14 August. This report includes details about all ESS interests granted, exercised, or vested during the financial year.
So, Why Does ESS Tax Reporting Matter?
Non-compliance can lead to penalties, reputational risks, and unnecessary stress for your HR and payroll teams, especially when dealing with unfamiliar local tax obligations.
To ensure your company manages the ESS reporting process well in advance of the official ATO deadlines, BoardRoom provides relevant services to help. With limited onboarding slots available to dedicate the necessary resources, it’s essential to confirm your participation with BoardRoom by 30 April.
We Understand the Cross-Border Complexity
Dealing with ESS reporting across international borders introduces unique challenges. Different jurisdictions have varying tax laws, reporting formats, and submission methods. For companies listed abroad, translating their global equity plan data, which might be held in various formats or systems, into the specific structure required by the ATO is a significant hurdle. This often involves complex data mapping, understanding Australian tax points, such as cessation of employment or exercise events, and ensuring all reportable events are correctly captured and valued according to Australian tax legislation. Getting this wrong can lead to audit triggers and penalties.
At BoardRoom, we specialise in helping international companies stay compliant with Australian ESS tax reporting requirements. With decades of experience in share registry and equity plan administration, we work with companies across the globe to simplify what can otherwise be a complex, manual, and time-consuming process.
Whether you’re managing ESOP, RSUs, options, or performance rights, our ESS tax reporting services ensure:
- Accurate ESS reporting to the ATO
- On-time delivery of ESS statements to Australian participants
- Secure and compliant handling of sensitive employee data
- Expert guidance tailored to your plan structure and jurisdiction
A Smarter Way to Meet Your Obligations
Here’s how we support you:
- We do the heavy lifting – from mapping data to ATO specifications to lodging files and distributing participant statements.
- We keep it seamless – integrating with your existing systems or plan providers.
- We stay ahead of the curve – monitoring ATO regulations so you don’t have to.
Two Key Deadlines About ESS Reporting You Can’t Miss:
- 14 July 2025 – ESS Statements must be issued to Australian participants
- 14 August 2025 – ESS data must be lodged electronically with the ATO
While 14 August is the final ATO deadline, early preparation for ESS reporting is critical, especially if you want to avoid errors, rushed reviews, or reporting headaches.
Speak to our team of experts today
Due to high demand and the personalised nature of our service, we have limited onboarding capacity ahead of the ATO submission deadline.
Reach out to us now to begin the necessary setup and data preparation for timely and accurate compliance for your reporting ahead of the 14 July participant statement deadline and the 14 August ATO lodgement deadline. Early engagement allows us to plan effectively and deliver the high standard of service our clients rely on.
Is This You?
If your company:
- Is listed in the US, UK, Singapore, or another international exchange,
- Has Australian-based employees or plan participants, and
- Offers employee equity awards or incentives,
Then you likely have an ESS reporting obligation in Australia.
Don’t Leave It to Chance
ESS tax reporting isn’t just a compliance checkbox; it’s a critical part of your global equity plan administration. Partner with a provider that knows the local landscape and speaks the language of both international business and Australian regulation.
Let’s talk about how BoardRoom can take this off your plate and ensure peace of mind this upcoming reporting season.
Interested in learning more? Connect with David Park, Business Development Manager, at david.park@boardroommlimited.com.au to schedule a call or meeting.
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