Introduction
Direct employees
Can receive NSO?
✅ Yes!
General taxation
In principle, there will be no taxation at the time of grant, nor at the time of exercise (even though the law is not 100% clear regarding the absence of taxation at exercise, and the tax authorities could theoretically claim that a benefit already arise at the time of exercise).
At the time of sale, the gain made will be taxed as a capital gain, at a flat rate of 18%, plus a military levy.
General tax, reporting & legal paperwork difficulty score
🤯 🤯
Tax advantages
There’s no particular tax favored scheme available in Ukraine, but the general taxation rules of stock options are already favorable as such since there’s no tax to pay before the shares are sold.
Warning point
The war against Russia has certain legal implications: One of these implications is that a “martial law” is currently in place, which has as practical effect to prohibit the grantees from wiring the funds necessary to exercise their stock options from their Ukrainian bank accounts.Net exercise arrangements (or other types of incentives that don’t require payment of an exercise price, such Stock Appreciation Rights (SARs) could be used as backup options.
EoR employees
Can receive NSO?
✅ Yes!
General taxation
In principle, there will be no taxation at the time of grant, nor at the time of exercise (even though the law is not 100% clear regarding the absence of taxation at exercise, and the tax authorities could theoretically claim that a benefit already arise at the time of exercise).
At the time of sale, the gain made will be taxed as a capital gain, at a flat rate of 18%, plus a military levy.
Personal tax advisor assistance is recommended.
General tax, reporting & legal paperwork difficulty score
🤯
Tax advantages
There’s no particular tax favored scheme available in Ukraine, but the general taxation rules of stock options are already favorable as such since there’s no tax to pay before the shares are sold.
Warning point
The war against Russia has certain legal implications: One of these implications is that a “martial law” is currently in place, which has as practical effect to prohibit the grantees from wiring the funds necessary to exercise their stock options from their Ukrainian bank accounts.Net exercise arrangements (or other types of incentives that don’t require payment of an exercise price, such Stock Appreciation Rights (SARs) could be used as backup options.
Contractors
Can receive NSO?
✅ Yes!
General taxation
In principle, there will be no taxation at the time of grant, nor at the time of exercise (even though the law is not 100% clear regarding the absence of taxation at exercise, and the tax authorities could theoretically claim that a benefit already arise at the time of exercise).
At the time of sale, the gain made will be taxed as a capital gain, at a flat rate of 18%, plus a military levy.
General tax, reporting & legal paperwork difficulty score
🤯 🤯
Tax advantages
There’s no particular tax favored scheme available in Ukraine, but the general taxation rules of stock options are already favorable as such since there’s no tax to pay before the shares are sold.
Warning point
The war against Russia has certain legal implications: One of these implications is that a “martial law” is currently in place, which has as practical effect to prohibit the grantees from wiring the funds necessary to exercise their stock options from their Ukrainian bank accounts.Net exercise arrangements (or other types of incentives that don’t require payment of an exercise price, such Stock Appreciation Rights (SARs) could be used as backup options.
Want to know more about equity in
the
Ukraine 🇺🇦
?
Discover everything you need to know about taxation and reporting obligations for you and your team in
the
Ukraine 🇺🇦