Tax Alert – Canada

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Proposed changes to stock option rules: update

No. 26, 20 June 2019

On 17 June 2019, federal Finance Minister Bill Morneau tabled a Notice of Ways and Means Motion that contains proposed changes to the tax treatment of employee stock options that were announced in the 19 March 2019 federal budget. The proposals include a $200,000 annual limit on employee stock option grants that can receive tax-preferred treatment under the current employee stock option rules.

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 16 September 2019.

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Tax Alert 2019 Issue No. 26
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