I n the UK, the value of the vested shares is subject to income tax and national insurance. In Germany, it creates a “dry income” problem where the employee is taxed on the value of the shares at exercise, even though they haven’t sold them yet and have no cash to pay the tax.
In Brazil, it could be tied to specific tax and labour law interpretations, creating a significant audit risk. The result? A celebration of success becomes a financial and legal headache, attracting fines, penalties, and a wave of confused and frustrated employees asking, “Where’s my money?”
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ISSUE 16 GLOBAL PAYROLL MAGAZINE
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