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ESOP in Europe how is it taxed?

If I have an ESOP in Europe which is 50% employee and 50% employer contribution. It's mutual fund and was told I am not getting any tax slips. If I withdraw where should i declare this income? Also do I have to declare entire contribution or just employer contribution or employee contribution? I 

Thanks a lot.

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Accepted Solutions

ESOP in Europe how is it taxed?

It depends on a few different factors including

  • if you're an employee of the company, the paperwork you receive to report the income at tax time. The employer's share of the ESOP may be included as a taxable benefit.
  • when the withdrawal is made, are you able to withdraw the entire sum or just your contributions? If only your contributions are withdrawn, were the stock options purchased as a discount? Was the discount reported as a taxable benefit on your income slip (T4)?

Because there are a number of different possibilities for tax-treatment, it's best to contact CRA directly for instruction on the proper reporting.

https://turbotax.community.intuit.ca/replies/2647704


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2 Replies

ESOP in Europe how is it taxed?

It depends on a few different factors including

  • if you're an employee of the company, the paperwork you receive to report the income at tax time. The employer's share of the ESOP may be included as a taxable benefit.
  • when the withdrawal is made, are you able to withdraw the entire sum or just your contributions? If only your contributions are withdrawn, were the stock options purchased as a discount? Was the discount reported as a taxable benefit on your income slip (T4)?

Because there are a number of different possibilities for tax-treatment, it's best to contact CRA directly for instruction on the proper reporting.

https://turbotax.community.intuit.ca/replies/2647704


ESOP in Europe how is it taxed?

Thanks Jennifer. Yes employer's share was already taxed every pay. I am planning to withdraw everything and no discount was applied.