- There are no income or social security taxes.
- The taxable amount is the amount by which the market value of the shares on exercise exceeds the exercise price.
Other / Notes
Once a Participant has acquired shares in the Company, they will pay Income Tax on dividends received at a maximum rate of 14%. The Income Tax is payable by the Participant and there are no withholding or reporting obligations for the Local Company.
The Local Company must file areport with the State Tax Service by the 20th day of the month following the quarter in which the tax event arises.
Corporate Tax Deduction
The availability of a corporate tax deduction for share based awards is unclear, even where a recharge arrangement is in place. Local advice is recommended.