Tax on Matched Shares

 

Will I have tax to pay when my Matched Shares are allocated on 6 April 2020?

This will depend on where you are located. Tax notes for each country can be accessed under the ‘Shareplus 2017 Tax Guides’ section of the ‘Documents’ tab once you login to your Shareworks account. To access your Shareworks account, please go to BHPBshareplus.com and click on the ‘View your portfolio and personal information’ button.

How do I pay this tax?

In some countries BHP has a mandatory obligation to collect this tax from you when the Matched Shares are allocated. 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 those countries where BHP does not have a mandatory obligation to collect 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 tax notes (as described above) for further information.

If I am located in a country that has mandatory tax, can I pay my tax direct to the company instead of having shares sold to cover the liability?

No. It is company policy that taxes are collected by sale of Matched Shares. Exceptions will only be made for those participants who have been advised that they are prohibited from selling shares under Our Requirements for Securities Dealing.

What tax rate will you apply when withholding the mandatory tax?

We will apply an estimated tax rate for each individual as provided by payroll.

PwC has communicated with international assignees prior to the Matched Share allocation, and have calculated appropriate rates for those individuals, as they will often have a partial tax liability in more than one country.

Can I obtain information about the vesting to assist me in preparing my income tax return?

Yes. Following the vesting event you will be able to run a statement on Shareworks which will specify the number of shares withheld or sold for withholding tax and price obtained to cover the tax liability. 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 for this small excess amount may therefore arise for you when you complete your individual 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.