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October 4, 2021

The Netherlands announces changes to the taxable moment of employee stock options

On September 21, new legislation for employee stock options was announced that will go into effect on January 1, 2022. In the Netherlands, employee stock options are taxable as employment income as a benefit in kind (up to 49.5%). The taxable event of stock options is currently the moment of exercise (or alienation) of the stock option. Per the newly announced legislation, the taxable event for stock options will in principle be moved to the moment that the shares, received by exercising the stock options, become tradeable. Note that the plans are still subject to approval by the Dutch Parliament.

A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.


Full text of Tax Alert