Plan: Let employee benefit from company profit – you should know this about shares as a gift | Money

Inflation is still high, groceries are expensive. CNV trade union believes that employees are not compensated enough and sees a solution in the tax-free issuance of company shares. Then you immediately benefit from the profit of your company: shares increase in value if the company you work for does well. The only problem: you currently pay tax on acquiring those shares. The ‘present’ therefore costs you money.

In Germany, it is already possible for companies to donate shares tax-free up to 1440 euros per year. CNV is now calling on the government to make the gift of shares up to an amount of 2000 euros tax-free.

At the moment, mainly listed companies work with employee shares and offer their employees the opportunity to buy them. In the Netherlands, about 10 percent of employees share in the profit. In France, this percentage is much higher, according to CNV: no less than 80 percent.

Young and fast-growing companies that want to retain talent also often use the option to buy shares. “Employers offer stock options to talented employees who want to keep them for a long time,” says financial planner Nihal Vogels. “That means that you actually buy a package of shares at the current market value or sometimes at a discount. After five years, for example, these can only be traded.”

“At the moment, giving company shares is taxed as wages,” says René Bruel of ABN Amro MeesPierson. “Imagine: your employer gives you 100 shares of 20 euros each, then you have to pay wage tax on those 2000 euros, because it is seen as wages.” Depending on how much you earn per year, that is a certain percentage. If you earn a maximum of 73,000 euros on an annual basis, this is almost 37 percent of the value of the shares.

Even if you get stock options, that kite goes up. If you are given the opportunity to buy shares for 20 euros and the share price is 30 euros, you have to pay tax on the difference (10 euros). Vogels: ,,If you now receive shares in the company where you work, you immediately pay tax on the market value now, while you can only convert them into money in five years. So you have to pay the tax out of your own pocket first.

“Someone with a high income probably has that money in their savings account,” says Bruel. “But if you have to pay 37 percent tax on 2000 euros in shares in one go, the question is where an employee with a lower wage can get that money from.”

First of all, it depends on the company you work for whether it is an option to buy shares. And if you don’t sell the shares right away, but hold them for a longer period in the hope that they will increase in value, you have to pay that tax out of your own pocket. In the worst case scenario that your company goes bankrupt, your shares are worth nothing and it has therefore only cost you money.

Bruel: ,,At the moment it is easier for someone with a well-stocked savings account than for someone who just has a piggy bank to replace a broken refrigerator. But if it becomes possible for employers to donate shares tax-free, it will not only be interesting for the high earners.” CNV hopes that by donating shares tax-free, all layers within the company will benefit from the profit.

And then there is something else to watch out for, says Vogels. “Investing involves risks. What if you leave the company early? Can you take the shares with you and at what value? It is wise if a financial advisor looks at what sensible choices are for you. Because not everyone knows what the pros and cons are.”

Once you own shares and have paid tax through your wages, they fall under box 3. This means that the value of the shares is included in your assets. If you have a lot of shares and savings, you pay tax on them. Investments are taxed more heavily than savings.

The first EUR 114,000 (partners) or EUR 57,000 (single) is exempt from wealth tax. If you have less money, you don’t have to pay taxes. If you have more capital, you pay 32 percent tax on the return.

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