France: taxation of stock-options and free-share plan
On October 30, 2007, the French government adopted a legislative project relating to stock options and free options taxation which will be enforceable at the end of December 2007, though it may be slightly changed before the end of December.
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The following taxations would be then applicable to options of shares granted from October 16, 2007:
- 2.5% paid by the company on the value of the options at the time of the decision of granting;
- 10% paid by the company on the value of free shares granted from October 16, 2007 at the of the decision of granting;
- 2.5% paid by the employee on the gain received from the exercise of options or the sale of free shares.
In addition, the French government is considering requiring that a profit-sharing plan, an incentive bonus plan or a free-share attribution plan would have to be implemented prior to the grant of stock options. This new rule would probably be enforceable in mid-2008.
The interest of the French government in the profit-sharing and incentive bonus plans is confirmed through a decree dated on October 24, 2007, which helps at facilitating notably the management of plans or increasing the information provided to the employees.
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© Chilli Publishing Ltd 2007 |
4 DEC 2007 |
