Global Rewards Update: Spain - 24 September 2009Spanish supreme court overrides personal income tax (PIT) regulation concerning stock option gains |
Since 2003, under certain circumstances, the Spanish PIT Act has provided a 40% reduction in the amount of stock option gain subject to Spanish income tax where the income is considered to be “irregular income”. The reduction is only applicable to stock option awards, and the act provides two requirements which must be met in order for income to qualify for this preferential tax treatment:
- The income is generated over a period of at least 2 years
- The income is neither recurrent nor periodical
On 30 April 2009, the Spanish Supreme Court ruled that the second requirement in the regulations (no annual grants by the employer) was unsupported by the language in the Act itself and, consequently, is illegal.
For more details, download the alert update below.
Global Rewards Update - Spain
(39.40 KB)
