October 4, 2021
The Netherlands announces changes to the taxable moment of employee stock options
New legislation for employee stock options was announced on 21 September 2021 and will go into effect on 1 January 2022. In the Netherlands, employee stock options are taxable as employment income as a benefit in kind (up to 49.5%). The taxable event of stock options is currently the moment of exercise (or alienation) of the stock option.
Under the newly announced legislation, the taxable event for stock options will in principle be moved to the moment that the shares, received by exercising the stock options, become tradeable. However, it is possible to choose for taxation at the moment of exercise if an employee makes this choice via a written request to the employer. The plans are still subject to approval by the Dutch Parliament.
A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.
Full text of Tax Alert