NL Tax Alert: new stock option taxation rules adopted
Yesterday, the Dutch House of Representatives passed a bill to defer the moment employee stock options are taxed. Currently, stock options are taxed upon exercise by the employee. Particularly start- and scale-ups oftentimes have insufficient funds to pay the tax due upon exercise. Under the new rules, stock options are taxed when the underlying shares become tradeable (against the fair value at that time). Employees may still opt for taxation upon exercise; hence an employer should inform its employees and administer their choices.