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Pretty much depends on the country where you file your taxes. In general, you pay taxes on the difference between the nominal value (strike price) and the current market price of the shares because that's the compensation you received instead of an ordinary salary.

What happens afterwards depends on both if you sell the resulting shares at a profit or at a loss and when you sell them. Typically, taxation amounts to a lot less if you hold the shares for more than a year.

See https://turbotax.intuit.com/tax-tools/tax-tips/Investments-a... for more information on how this is dealt with in the US (including which tax forms to file).




I am not an expert.

That said, based on that article, there appears to be a difference between Incentive Stock Options (ISOs) and Non-Qualified Stock Options. You linked to information on that latter. Here is information on ISOs from Intuit: https://turbotax.intuit.com/tax-tools/tax-tips/Investments-a...

At a glance, ISOs appear to be more favorable, tax-wise, in the US - they trigger AMT but not "direct" income tax.




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