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An executive inquired whether the 40% tax reduction for irregular income could be applied when exercising stock options granted over several years. The Directorate-General for Taxes (DGT) ruled that if options are granted annually, they fail to meet the requirement of not being obtained periodically or recurrently.
This ruling limits the tax benefits available to executives receiving stock options, as annual grants will be treated as regular income rather than irregular income for tax purposes.
The tax team reviews your specific situation.
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