Denmark: Proposed Tax Friendly Stock Options
The Danish government is considering a bill which will change the tax position on employee stock options. Under the proposed changes stock options will only be taxed at sale and with a maximum tax rate of 42% rather than the maximum 52% tax applied to salaries. The flipside of the new provisions is that the preferential tax treatment would only be available where the value of the stock is no more than 10% of the employee’s annual remuneration. From a company’s point of view, the costs would not be deductible for corporation tax.