21 June 2019 Update provided regarding Canada's proposed changes to employee stock option rules Federal Finance Minister Bill Morneau tabled a Notice of Ways and Means Motion (NWMM) on June 217, that contains proposed changes to the tax treatment of employee stock options that were announced in the March 19 federal budget. The proposals include a $200,000 annual limit on employee stock option grants that can receive the tax-preferred treatment available under the current employee stock option rules. According to the Department of Finance, the intention of the new rules is to restrict the preferential treatment for employees of large, long-established, mature firms and provide for a full stock option deduction for stock option benefits granted by "start-ups and emerging Canadian businesses." In addition, stakeholders are invited to provide input on the characteristics of companies that should be considered start-ups, emerging and scale-up under the new rules by September 16. Document ID: 2019-1138 |
