EQUITY GUIDE

OFFERING EQUITY TO YOUR TEAM IN

The

Poland 🇵🇱

Looking to offer equity to international talent joining your team? No matter where in the world your team members work, Easop makes it easy for you to offer equity compliantly to direct employees, EoR employees and contractors hassle-free, worry-free, and cost-efficiently!

Firstly, who can receive NSOs?

Direct employees

YES

NO

EOR employees

YES

NO

CONTRACTORS

YES

NO

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The tax information below is an extremely brief summary for standard situations of the referred relationship, and each situation may of course be different from the norm and have its own specificities.

More comprehensive information for this country and its work relationships is available on Easop.

General Taxation

Learn about equity schemes and taxation policies in
the
Poland 🇵🇱
.

At grant 👉 No taxation at grant.

At exercise 👉 The tax treatment of the gain made upon exercise of the stock options is not entirely clear, as the spread (i.e. the difference between the fair market value (FMV) of the shares at the time of exercise and the exercise price paid by the grantee) could either be taxed as “other sources of revenue” or as employment income.

At sale 👉 Any gain the grantee would be subject to capital gains tax.

At grant 👉 No taxation at grant.

At exercise 👉 The tax treatment of the gain made upon exercise of the stock options is not entirely clear, as the spread (i.e. the difference between the fair market value (FMV) of the shares at the time of exercise and the exercise price paid by the grantee) could either be taxed as “other sources of revenue” or as employment income.

At sale 👉 Any gain the grantee would be subject to capital gains tax.

At grant 👉 No taxation at grant.

At exercise 👉 The tax treatment of the gain made upon exercise of the stock options is not entirely clear, and could depend on the type of agreement between the company and the contractor (and the entity the contractor works for).

At sale 👉 Any gain the grantee would be subject to capital gains tax.

Tax advantages

Learn about equity schemes and taxation policies in
the
Poland 🇵🇱
.

There’s a tax-favored scheme available, whereby taxation can be deferred to the time of sale.

There’s no tax-favored scheme for EoR employees.

If the contractor works under a civil law contract, there’s a legally foreseen tax-favored scheme potentially postponing the taxation to the time of sale of the shares which may be available.

It's also worth noting that capital gains are less heavily taxed compared to professional income, providing a slight tax advantage (compared to standard cash bonuses). So, generally, the earlier the contractor exercises, the better from a tax perspective, as any increase in value of the shares between the time of exercise and the time of sale will be subject to a lower tax rate.

Pay attention to:

As we mentioned, you can certainly grant stock options to contractors, but you should also be aware that doing so could increase the misclassification risk (i.e. the contractor relationship being reclassified as an employer-employee relationship, with all the associated tax consequences).

The issuance of a stock option grant will never be the only factor for determining misclassification. There are others such as control over the contractor’s work, exclusivity, and term of the services that will be considered should a question of misclassification arise. But you should know that a stock option grant is one of those factors.

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