Employee shareholdings provide advantages, as shareholdings are typically acquired either at no cost or at a discounted price. This leads to a variance between the issuance price and the investment's fair value. From a tax standpoint, this benefit is included in the earned income and subject to taxes and social security contributions.
Taxation of employee share
Employee shares are taxed immediately when the shareholding is allocated to the employee. The taxable amount is calculated as the difference between the fair market value of the shares and the price at which they are allocated to the employee. A discount of 6% per annum is granted for blocked shares (up to ten years with a maximum
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Web page updated on 17 Mar 2025 15:00