Article 57 of the Amended Finance Act 2010 provides for a withholding tax on benefits and gains realized on or after 1 April 2011 by persons not domiciled in France resulting from the exercise of options stock, the bonus share (AGM).
This new withholding will cover the benefits and gains made by persons not domiciled in France for the year of transfer of title or year of the exercise of options (in respect of discounts related to stock options), or the year of delivery of the securities (in the case of plans not qualifying).
What rate?
Except option for Taxation of salaries and wages and therefore the conditions to benefit from special tax regimes are met, the rate of withholding will be those anticipated by these regimes, namely:
- in terms of benefits from exercise of stock options: 30% for the fraction that does not exceed € 152 500 and 41% (assignments made on or after 1-1-2011) for amounts above that amount. These rates will be reduced respectively to 18% and 30% when carrying additional two years;
- for gains acquisition of bonus shares: 30%;
The withholding will discharge the income tax in respect of earnings acquisition of bonus shares. However, the withholding tax on capital gains from stock option vesting will not be discharged.
A tax issue? click here>>
0 comments:
Post a Comment