International Employee Stock Plans: 2019 Mid-Year Developments

This White Paper highlights some recent developments in certain countries relating to employee stock plans offered by multinational companies to employees in such jurisdictions.

BELGIUM

New Tax Withholding Obligations

Effective March 1, 2019, employers in Belgium are required to withhold and report wages when an equity award is considered taxable, regardless of whether the local entity is involved in the grant process (e.g., through a recharge of costs). One unusual consequence of this new tax withholding requirement relates to the taxation of qualified stock options. Any tax qualified stock options for which the 60th day following the offer date under Belgian tax rules occurs on or after March 1, 2019, are now subject to wage withholding on the 60th day (which is considered the date of grant in Belgium). Taxes must be remitted to the tax authorities by the 15th day of the month following the month in which the date of grant occurs.