Changes to Tax Treatment of Stock Options – Adopted
On July 11, 2019, the parliament adopted the proposal to amend the Law on Individual Income Tax ("LIIT") regarding the tax treatment of stock options, as previously reported. The amendments will enter into force on February 1, 2020.
Under the amendments, employees exercising stock options will be exempt from both income tax and social security contributions, provided that the option is gratuitous or at a reduced price and exercised no earlier than 3 years after proposition.
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