Global

Details

  • Service: Tax, International Corporate Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 12/22/2012

Luxembourg - Guidance on taxation of stock options 

December 22:   The Luxembourg tax authorities issued a new circular (LIR n° 104/2 (20 December 2012)) concerning the taxation of stock option plans. This circular is effective 1 January 2013, and replaces prior guidance dated 11 January 2002.

The guidance provides different rules for transferable and non-transferable stock options.


Concerning the taxation of stock options, the benefit (previously taxed as employment income) is added to the acquisition cost for purposes of computing the taxable gain on the ultimate disposal of the option or share.


The benefit-in-kind may be taxable as employment income, if in essence employees that are not shareholders have similar benefits; otherwise, this benefit is to be regarded as a dividend if it is granted to a shareholder in respect of his shareholder status.


Read a December 2012 report [PDF 100 KB] prepared by the KPMG member firm in Luxembourg: New Tax Circular on Stock-Options




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