Tax on Matched Shares
Will I have to pay tax on my Matched Shares?
Yes. Matched Shares are a form of income and are therefore taxable.
When will I be taxed?
This will depend on where you are located. Tax notes for each country can be accessed under the ‘Shareplus Tax Guides by Country’ section of the ‘Documents’ tab in your Shareworks account.
How do I pay this tax?
In some countries BHP has a mandatory obligation to withhold this tax from you when the Matched Shares are allocated. Some of these countries include: USA, UK, Malaysia, Canada and Chile. If you are located in one of these countries, then sufficient shares will be withheld or sold from your Matched Shares allocation in order to cover this tax obligation and pay the tax across to the relevant taxing authority. Your remaining Matched Shares will be placed in your Shareworks account.
In countries where BHP does not have a mandatory obligation to withhold the tax (such as Singapore and Australia), the income from the Matched Shares will generally be taxable via your individual tax return at the end of the tax year. Note that BHP provides your taxing information to the Australian and Singaporean tax authorities.
Please refer to the ‘Shareplus Tax Guides’ section of the ‘Documents’ tab in your Shareworks account.
Will I be notified that the withholding or sale of my Matched/Acquired Shares has completed?
You will not receive a notification that the withholding or sale has been settled. You can check the sale online at any time by logging onto your Shareworks account and clicking on the Share Purchase and Holdings tab at the top of the page, and then View Transaction History from the left hand tool bar.
What tax rate will you apply when calculating the mandatory withholding tax?
We will apply an estimated individual tax rate for each participant as provided by payroll.
I have been located in multiple countries since enrolling in Shareplus 2019 – where are my Matched Shares taxable?
If you have been located in more than one country since enrolling in Shareplus 2019, you may have a partial tax liability in more than one country. An external tax provider, engaged by BHP, will provide appropriate tax rates for those individuals.
Can I obtain information about the vesting to assist me in preparing my income tax return?
Yes. After the vesting event you can run a statement on your Shareworks account detailing the number of shares sold for withholding tax and the sale price obtained for them. As BHP can only sell whole numbers of shares to cover your tax liability, the amount collected from the sale may be slightly in excess of the tax due. A refund may therefore arise for you when you complete your tax return at the end of the tax year in your location.
For Australian employees, Australian tax statements and a tax guide will be available each July