Navigating the new employee share schemes tax rules
Source: Taxation In Australia Journal Article
Published Date: 1 Oct 2015
Significant changes have recently been made to the rules about the taxation of employee share schemes. In particular, the changes have reversed some amendments made in 2009 to the taxing point for rights to shares, and have introduced a further taxation concession for employees of certain small startup companies. Rights to acquire shares granted on or after 1 July 2015 no longer need to satisfy the real risk of forfeiture test, which was introduced in 2009, to qualify for tax deferral and are now generally taxed on exercise.
This article examines the new rules in detail. The article discusses how the changes may be applied in practice, which shares and options qualify for the new startup tax concessions, which employees are eligible, key features of the tax concession for options and shares, valuing shares of unlisted companies, and employee share scheme reporting for startup shares and options.
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Details
- Published By: Shaun Cartoon FTI
- Published On:1 Oct 2015
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