Equity-based compensation as an incentive
More and more companies are finding that both they and their employees benefit from equity-based compensation. It is a means for employers to increase their employees’ loyalty, and it may serve as an incentive, offering employees an additional fringe benefit and the prospect of income from their stake in the company.
How can KPMG Meijburg & Co assist you?
We provide tailored advice to organizations that want to know more about equity-based compensation. Our team of specialists focus on all aspects of taxation in this area. When an equity-based compensation plan is introduced, they identify its implications in terms of payroll tax and social security contributions, employed persons’ insurance contributions, and corporate income tax..
How will you benefit?
Introducing an equity-based compensation plan is a highly complex matter, and not just in terms of taxation. In consultation with you, we will:
- ensure that the plan not only maximizes the tax benefits (with minimum exposure), but also takes account of your wishes and circumstances; and
- perform a detailed analysis, weighing the various types of equity-based compensation (such as stock option plans, unit-linked savings plans, and profit-sharing plans) and the relative influence of the participants (such as depositary receipts for shares and stock appreciation rights).
If you wish, we will also coordinate the plan’s legal structure.
Why choose KPMG Meijburg & Co?
We have years of experience in providing advice to numerous companies on this issue, and have developed expertise enabling us to effectively assist you in your choice of the right form of equity-based compensation and its implementation. Our specialists in this field match the key tax aspects (payroll tax, dividend withholding tax, personal income tax, and corporate income tax) with the interests of your company.