Many entrepreneurs want to involve or keep their staff more involved in the company. Options on shares in the company are a sought-after tool in this regard. The aim is to make the use of these employee options more attractive.
Option
An option is the right to acquire shares at a certain price over a certain period of time. When options are granted to employees, there may be an employment benefit, which is taxed with payroll tax.
The value of the right is not considered as the benefit from employment. Taxed with payroll tax is the benefit enjoyed at the time the option is exercised. That is the time when the option is exchanged for the shares (or the option is disposed of or surrendered).
Levy moment shifted
In a draft bill, State Secretary Vijlbrief proposes to shift the taxation moment for employee options to the moment when the shares acquired on exercise can be traded. This will make the use of employee options more attractive, especially for start-ups and scale-ups, but the proposed scheme will be introduced for all employers.
If the option entitles the employee to listed shares, the time of taxation is generally equal to the time of exercise of the option. Taxed is the value of the listed shares less what the employee pays for the acquisition of the shares.
If the shares are not tradable due to contractual arrangements, the taxation moment can be carried forward for up to 5 years.
The employee, who does not yet acquire marketable shares, may still choose to have the settlement take place at the time the option is exercised.
The draft bill is before internet consultatie.