NSO

You can grant non-qualified stock options (NSOs) to local residents employed via EoR in Egypt.

Note that, theoretically, it’s mandatory to have the equity award documentation into Arabic by a sworn translator.

• In principle, at the time of exercise, the spread (i.e., the difference between the fair market value of the shares at the time of exercise and the exercise price paid by the grantee) will likely be taxed as regular income and be subject to income tax and social security contributions.
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• At the time of sale, the gains will be treated as “commercial and industrial activity” and added to the grantee’s global income to be taxed just like salary, but without any social security charges.
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• There is no tax-favored scheme that could apply to NSO granted by a foreign company.

NSO

You can grant non-qualified stock options (NSOs) to local residents employed as contractors in Egypt

• Any gain for the grantee in the lifecycle of the stock options will be treated as regular income from a commercial activity: this includes the spread at the time of exercise (i.e. the difference between the fair market value of the shares at the time of exercise and the exercise price paid by the grantee) and possible gains at the time of sale of the underlying shares.
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• There is no tax-favored scheme that could apply to NSO granted by a foreign company.