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The Legal Guide, CA5.17 contains significant guidance on the tax treatment of stock options. There are also guidelines regarding the mandatory reporting of remuneration in the form of shares. The details provided below summarises the overview in the general case.

If an employee receives employee shares as part of an employment relationship, the employee is taxed on market value of the shares at the time of acquisition of rights, less any payment made by the employee out of income that has already been taxed.

This is taxed as A-income (ie income subject to withholding) and it is added to the salary earned in the pay period during which the shares were acquired. The SKAT confirmed this in detail in SKM2024.495.SR for an employee working abroad, and thus granted the employee relief under Tax Assessment Act, s 33A. See also 6.2).

If conditions are attached to the award then the acquisition of the right is considered deferred until the time when the