Lower taxation on share options for start-ups and scale-ups

For whom?

• start-ups and scale-ups that offer their employees share options

What changes?

Do you own a start-up or scale-up? It will be easier to reward your employees with share options. Share options allow employees to share in the growth of your business financially. If the shares have increased in value after some time, they can still buy these for the original price.

The tax rules for shares in start-ups and scale-ups and for offering share options will change. The main changes are:

• Lower taxation on share options: Your employees will pay less taxes on their share options. In the future a smaller part of the advantage from share options will count towards taxes. This makes share options more attractive.
• Paying tax on sale at the latest: Your employees will have to pay tax at the latest when they sell the shares from their share option rights. This offers more financial flexibility to employees and former employees.

A start-up or scale-up is a business that, for example:

• focuses on fast growth
• has a revenue model that can easily grow along
• develops or improves products, services, processes, or technologies

Do you want to make use of the new rules for share options? Then your business must be recognised as a start-up or scale-up. Specific conditions apply for this. You need to apply for an assessment from the Netherlands Enterprise Agency (RVO). Does your business no longer meet the criteria? Then you must report this to RVO.

When?

This change in the Income Tax Act is expected to take effect on 1 January 2027.