December 10, 2020
Canada's Fall Economic Statement reintroduces stock option proposals
The Fall Economic Statement reintroduces changes to the taxation of employee stock options first introduced in the 2019 federal budget. The changes introduce a $200,000 annual limit on employee stock options that may qualify for preferential tax treatment. This limit will not apply to stock options granted by Canadian-controlled private corporations (CCPCs) or non-CCPCs with annual gross revenue of $500 million or less.
A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.
Full text of Tax Alert