OTTAWA - Executives at big established companies who get paid with large stock grants will owe more in tax under changes promised in the new federal budget. Under the current rules, employee stock option benefits are taxed at half the normal rate of personal income — the same rate as capital gains. Executives at big established companies who get paid with large stock grants will owe more in tax under changes promised in the new federal budget. “Capping the stock option deduction is a welcome surprise in this budget to partially close one of the most regressive tax loopholes. Employee stock options allow workers to buy shares of their employers at a set price, which might be less than the market price.

Source: thestar March 19, 2019 20:22 UTC