As a reminder, the Economic Recovery Act of 27 March 2009 (published in the Belgian Official Journal of 7 April 2009) provided for the possibility to extend the exercise period of stock options stemming from plans concluded between 1 January 2003 and 31 August 2008 without any tax.
The employer may thus extend, by common consent with the beneficiaries, the exercise period of the current stock options by a maximum period of 5 years without any complementary benefit for the beneficiaries.
The tax authorities have just published a circular detailing the terms of applicability providing, among others:
- it must concern stock options already granted but not yet exercised or already expired due to the conditions of the plan;
- the options must have been granted to the beneficiary between 2 November 2002 and 31 August 2008;
- each beneficiary may extend all his options for a total fiscal amount of EUR 100,000, the surplus is not taken into account.
Regarding the formalities:
- the company that granted the options must conclude a written agreement with the beneficiaries before 30 June 2009;
- said company must then notify the agreement to the tax authorities before Friday 31 July 2009.
Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue, please seek specific advice relevant to your particular circumstances.