New stock option legislation was approved by the Dutch Lower House and will be effective from 1 January 2023, subject to approval of the Upper House. Currently, employee stock option gains are taxable at rates up to 49.5% and the point of taxation is the date the option is exercised (or alienated).
Under this legislation, the taxation point will be the date that the shares, received when exercising the stock options, become tradeable. However, employees will be able to choose the pre-1 January 2023 tax treatment upon request. The current facility for start-up companies with respect to employee stock options will be cancelled. Voting in the Upper House is expected around September this year.
A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.
