Post by account_disabled on Feb 17, 2024 6:58:25 GMT -5
In that case he would have to declare that gain or loss (if he sells it for less than when he bought it) in the personal income tax, paying taxes on that capital gain. Cabify is one of the Spanish startups that has publicly requested that the treatment of 'stock options' be improved Cabify is one of the Spanish startups that has publicly requested that the treatment of 'stock options' be improvedREUTERS/Jon Nazca Why do stock options have this taxation? You have to go back to the last century to remember the reason. "In Spain, some phenomena occurred in the 90s with large companies whose executives tried to camouflage salaries to benefit in tax terms, and the Treasury decided to toughen the tax treatment," reports the Spanish Startup Association. One of the most famous cases at that time was that of Telefónica , whose president at the time, Juan Villalonga , obtained more than 21.3 million pesetas (about 126,000 euros) in 14 days thanks to receiving and selling stock options, as revealed in that moment The World .
In total, the company compensated its top one hundred executives with 491 million euros using stock options , which led the Government at that time to toughen its tax treatment , considering them a way of diverting salaries to a formula to pay less taxes. Phantom Shares , the shortcut for Spanish startups The taxes that stock options entail on workers Europe Cell Phone Number List have caused Spanish startups to stop using them. " For your employee to have to pay taxes for something that he cannot make liquid is to give him a poisoned candy. I am convinced that whoever tightened the taxation of stock options did not fall for this, but the reality is that the one who is harmed the most is the small and medium-sized business," says Pablo Reaño, founder and CEO of the technology consultancy WePlan Analytics, in statements to Business Insider Spain . Johanna Gallo, from APlanet, agrees.
We are not giving them because it is worse for the employees, they have to pay to receive those stocks , which are also not liquid because the company is not listed, for them it is not advantageous at all," she explains. "This remuneration system has lost prominence in recent times to the detriment of other systems such as phantom shares , especially as a consequence of a treatment of stock options that is not sufficiently attractive at a tax level ," says Ignasi Costas , from the DWF law firm. -RCD, which has more than 50 professionals serving startups. Phantom shares: the way to attract, reward and retain talent in the Spanish Startup Phantom shares differ from stock options in that they do not grant the right to acquire shares in the future, but they do recognize "equivalent economic rights" to the worker, says Costa. "They represent an agreement between it and the company for the payment of a certain percentage of the difference between the value of the company at the time it is agreed upon (current value) and the value when the established period elapses (in practice it is the payment of a monetary bonus)", he adds. "The fundamental difference is that you only have economic rights, but not political ones, while with stocks you have both.
In total, the company compensated its top one hundred executives with 491 million euros using stock options , which led the Government at that time to toughen its tax treatment , considering them a way of diverting salaries to a formula to pay less taxes. Phantom Shares , the shortcut for Spanish startups The taxes that stock options entail on workers Europe Cell Phone Number List have caused Spanish startups to stop using them. " For your employee to have to pay taxes for something that he cannot make liquid is to give him a poisoned candy. I am convinced that whoever tightened the taxation of stock options did not fall for this, but the reality is that the one who is harmed the most is the small and medium-sized business," says Pablo Reaño, founder and CEO of the technology consultancy WePlan Analytics, in statements to Business Insider Spain . Johanna Gallo, from APlanet, agrees.
We are not giving them because it is worse for the employees, they have to pay to receive those stocks , which are also not liquid because the company is not listed, for them it is not advantageous at all," she explains. "This remuneration system has lost prominence in recent times to the detriment of other systems such as phantom shares , especially as a consequence of a treatment of stock options that is not sufficiently attractive at a tax level ," says Ignasi Costas , from the DWF law firm. -RCD, which has more than 50 professionals serving startups. Phantom shares: the way to attract, reward and retain talent in the Spanish Startup Phantom shares differ from stock options in that they do not grant the right to acquire shares in the future, but they do recognize "equivalent economic rights" to the worker, says Costa. "They represent an agreement between it and the company for the payment of a certain percentage of the difference between the value of the company at the time it is agreed upon (current value) and the value when the established period elapses (in practice it is the payment of a monetary bonus)", he adds. "The fundamental difference is that you only have economic rights, but not political ones, while with stocks you have both.