The Case for Favorable Taxation of Stock Options in the Netherlands
In the Netherlands, stock options are taxed via payroll tax (at a high rate compared to, for example, capital gains tax as is the case in several other countries). While countries such as the US, the UK and Sweden have a facility whereby options are taxed more favourably, this is lacking in the Netherlands. Startups indicate that partly because of this we are not optimally positioning ourselves to attract the best international talent. The Dutch government is currently working on a measure to postpone the moment of taxation, but the tax rate is not part of this policy adjustment. If we really want to create a mature and successful ecosystem like the Netherlands, this is one of the measures that the new cabinet should take. In this way, we ensure that the flywheel can really start to turn in the Netherlands.