Employee shares
If you as an employee participate in one or more share programs, there are several things you should be aware of, including tax.
It is important that you are aware of the reporting obligations you have, as well as being capable to do the calculation of share gains on sale under Danish tax rules. If you have earned shares abroad, it is also important to ensure that you are not subject to double taxation.
Many employers offer their employees various share programs. For employers, it is a good tool for retaining and motivating employees.
The typical share programs offered to employees include warrants, options, RSU (restricted stock units), PSU (Performance stock units) or shares purchased through the ESPP program (Employee share purchase plan). In addition, there are several employees who receive employee shares where the shares are covered by the rules in section 7P of the Danish Tax Assessment Act. This means that the employee's payment of tax is deferred until the shares are sold.
In situations where you move to or move out of Denmark, it is important to ensure that you pay the correct tax and are not double-taxed. This applies not only in the year of entry or exit, but also in subsequent years.
There is no doubt that the rules regarding employee shares are complex and can often seem overwhelming for you as an employee. Regardless of how your share program is structured, you are always welcome to contact us.
We are ready to assist you
We look forward to hearing from you.
