France Amends Reporting Criteria To Grant Tax-qualified Stock Options

By Author: martin well
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France has amended the reporting requirement criteria to grant tax-qualified stock options, free share and Bons de Souscription de Parts de Créateurs d’Entreprise (BSPCE) on January 31, 2012.

New Reporting criteria for Stock Options and BSPCE on or after January 1, 2012:

● Companies are required to issue individual certificates of stock options and BSPCE containing details of French-sourced portion of the income by March 1, 2012 following the exercise. A copy of the same has to be sent to the plan administrator as well.

● The individuals have to affix the certificates to their French income tax return of the year of exercise of stock options or BSPCE.

● Companies are required to furnish the information on the certificate on their employer annual wage returns (DADS).

● In case the holding period is not respected by the participant during the year of sale, the company has to issue an individual certificate by March 1 of the following year and send it to the tax office of the company and also a copy to the plan administrator.

New Reporting criteria for Free Shares ...
... on or after January 1, 2012:

● Companies are required to issue individual certificates of free share vesting containing details of French-sourced portion of the gain by March 1, 2012 following the vesting. A copy of the same has to be sent to the plan administrator.

● The beneficiaries have to affix the certificates to their French income tax return of the year of vesting of free shares.

● Companies are required to furnish the information on the certificate on their employer annual wage returns (DADS).

● In case, the usual holding period of two years is not respected by the participant or in case of a specified share exchange during the year, the company has to issue an individual certificate to the beneficiary, to the tax office of the company and to the plan administrator as well.

Awards Vesting in 2011:

● Such Companies must issue certificates against the free shares vested in 2011 and copies of the same to be furnished to the French Tax Centre by April 30, 2012.

● Employees must furnish the certificate on their tax returns for 2011.

Keeping pace with the latest amendments

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Employees must furnish the certificate on their tax returns for 2011.