How does Sweden tax stock options?
posted on
Jul 16, 2019 12:06AM
One last thought before I retire for the evening....it struck me that Dr. Johansson's option exercise and subsequent sale....the options were priced at 65 cents, the same as DM and at least a couple other insiders. Yet the good Doctor was the only one who engaged in selling any.
I was wondering how Sweden taxes stock options, and I came across this article:
While the article doesn't pertain to this situation, it does point toward Sweden having what seems to be harsher tax laws than other EU countries, and I would assume (dangerous perhaps) harsher than those of Canada and the US. While many have stated that the sale was likely due to tax reasons, I don't think there's (as yet) been anything deifnitive on that front.
I just came across this site:
Included is this point:
1.2.1 New legislation was introduced driven by demands from a group of large multinational companies. The new legislation defines employee stock options as rights which are not in themselves classified as marketable securities (see section 2 below) 2 . The new legislation took effect for employee stock options vesting on or after 1 July 1998, and deferred the tax point until exercise of the option.
This suggests to me that as soon as Dr Johannson exercised it conceivably triggered a tax liability.
Nightie night.