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Superior Chamber of Tax Appeals has been ruling on stock options favorably to the treasury

To date, only two decisions have been formalized by the Superior Chamber of Tax Appeals on the incidence of social security contributions and withholding income tax on gains earned by individuals as a result of Stock Options programs. The most recently published decision was issued in a generic way, so that an inattentive reading could lead to the conclusion that CARF’s understanding is that any payments made to employees under the heading of Stock Options would be characterized as compensation. In fact, the determination of the nature of the Plan depends on the form of its structure and conditions.

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