Why Do I Need to Declare Equity on Remote Equity?

When you grant equity to employees hired through Remote's Employer of Record (EOR) service, Remote becomes the legal employer of record in each country. This means Remote is legally responsible for ensuring that equity-related taxable events are correctly reported, withheld, and remitted to local tax authorities — on your behalf.

For Remote to fufill these obligations, it needs to know about every equity event that affects your EOR employees. Declaring equity on Remote Equity is how you provide that information.

Why declarations are a legal requirement

As the legal employer, Remote is liable for payroll tax compliance in each employee's country. When an equity event occurs (a grant, a vesting, an exercise...), it may generate a tax obligation — typically in the form of income tax and social contributions — that must be processed through payroll. If Remote is not informed, it cannot withhold the correct amount, which can result in:

• Tax shortfalls: The employee may owe taxes that weren't withheld, creating personal liability.
• Penalties for Remote and your company: Late or incorrect reporting can trigger fines from local tax authorities.
• Payroll corrections: Retroactive adjustments are complex, costly, and disruptive for employees.

For more on the financial risk of non-compliance, see How much can not being compliant with equity tax regulations cost?.

What you are required to declare

You must declare all equity events for your EOR employees on Remote Equity, including:

• Option and RSU grants (including grants made before the employee joined Remote — see Do I have to include option grants that were issued to employees prior to their employment under Remote EOR?)
• Vesting events for RSUs (see How to declare RSU vesting?)
• Exercises (see How do I declare an exercise?)

For a full overview of what types of equity to declare, see What type of equity compensation should I declare on Remote Equity?.

How to declare

You can declare equity events manually in the Remote platform, or automatically by connecting your cap table management system (Carta or Pulley). For setup guidance, see How do I declare a grant? or How to declare equity if I use Carta as Capitalisation Table Management Solution?.

If you have questions about your specific obligations, contact your Remote account team.