Stock Options

In a new Finance law for social security (not yet published), another exception to the principle of exclusion of the advantage issued from the exercise of the option of the base of social security contributions has been provided and ratified.

Currently, the advantage issued from the exercise of the option (difference between the value of the security at the time of the exercise of the option and the price of the option), is indeed exempt from social security contributions, apart from the part of the discount exceeding 5% (or 10% for options granted before July 1st, 1993) of the security price at the time when the option is granted.

Article 11 of the new law challenges this exemption if certain conditions are not fulfilled.