State Secretary Keijzer offers the House of Representatives a report of the research that has been conducted on the taxation of employee share option rights in ten countries that are relevant to the Netherlands as a competitive location for startups and scale-ups.
The investigation shows that most countries have in general taxation when exercising a share option right where the benefit is taxed as wages and in addition taxation on capital gain.
If specific conditions are met, which vary from country to country, the majority of countries may either deferred taxation until the time of sale or a lower rate applies to sales or a combination of the two.
Taken into account this survey the Cabinet announces new legislation introducing an election to be taxed either at exercise or when the shares obtained at exercise becomes tradeble. The current issues on payment of taxes while no cash is available should then solved.
The precise proposal will be published in a few days in view of an internet consultation procedure.
It is the intention of the Secretary of State for Finance to include the new tax regime in the Tax Plan 2022.