Individual Tax Alert (05/04/2013) - 2
The High Council of Finance disagrees with Minister of Finance’s suggestion to change stock option tax regime
When the High Council of Finance’s (hereafter HCF) “Taxation and Para-taxation” Division was established, former Minister of Finance Vanackere presented a list of propositions to simplify the tax legislation established by the tax administration. Minister Geens is continuing this administrative simplification project.
One of the suggestions was to change the point of stock option taxation from the moment of grant to that of exercise (or transfer). Consequently, the current lump sum taxation for non-quoted options would also change. The tax administration proposes taxation on the difference between market value upon exercise and the exercise price (or amount received at the moment of transfer). A reduction could be foreseen in relation to the options’ holding period.
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