Our company, based in US, has a subsidiary- R&D office in India. We grant stock options to employees based in India. We complete our 409A annually in US. Our employee in India would like to exercise their stock options. It is required to compute the income tax withholding on this exercise. Our accountant in India ask us to perform a 409A valuation in India because the 409A Valuation of a parent company in US is not considered for India Tax purpose. Does anyone has similar experience that a 409A valuation is required to perform for a subsidiary and why?
