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Tax Adviser Knut Riedel

Tax Adviser Knut Riedel
Kistlerhofstraße 168
81379 München
+49 (0)89 - 78 31 50
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If your employer grants you stock options during a time you are working outside of Germany, but you exercise these stock options during your assignment in Germany, it is questionable which country is entitled to tax the gain.
Exercising non-tradable stock options in Germany is a taxable event in this country (granting these options is not taxable). Subject to tax is in general the difference between the market value of the share and the strike price.
Nevertheless, Germany has only the right of a proportionate taxation for the period the person has been working in this country.
In case the tax regulations of the involved countries differ you may face a double taxation. For example the Belgium tax regulations stipulate a taxable event in the moment the stock options are granted. However, exercising these stock options in Germany is taxable in Germany, which results in double taxation.
Most of the double taxation agreements allow an agreement procedure to clear a double taxation.
We are looking forward to help you in this matter.