{"id":3269,"date":"2019-12-12T00:00:00","date_gmt":"2019-12-12T00:00:00","guid":{"rendered":"https:\/\/new.leinonen.eu\/ltu\/changes-in-stock-options-taxation\/"},"modified":"2019-12-12T00:00:00","modified_gmt":"2019-12-12T00:00:00","slug":"changes-in-stock-options-taxation","status":"publish","type":"post","link":"https:\/\/leinonen.eu\/ltu\/news\/changes-in-stock-options-taxation\/","title":{"rendered":"Changes in Stock Options taxation"},"content":{"rendered":"<div>\n<p>On 1 February 2020 amendment of part 1 of Article 17 of Lithuanian Law on Personal Income Tax (PIT), which lists non-taxable income of the residents of Lithuania, comes into force.<\/p>\n<p>The provision of the amendment states, that if the <u>shares acquired free of charge or at preferential price not earlier than 3 years<\/u> after the grant of <u>the stock options<\/u> from the <u>employer<\/u> or a <u>person related to the employer<\/u>, such benefit received is not considered to be subject to PIT.<\/p>\n<p>Please note, the provision of this amendment applies to the benefit received according to the stock options agreements concluded after 1 February 2020, i.e. benefit shall not be considered as subject to PIT, if the shares are acquired free of charge or at preferential price no sooner than 1 February 2023.<\/p>\n<p>Prior this amendment, Law on PIT stated, that the employee or employer becomes liable to PIT, when an employee becomes the owner of shares and difference between granted price and the market price of shares is considered as subject to PIT. <\/p>\n<p><\/p>\n<p>Please note, that shares received according to stock options agreements are exempted from Social Security Contributions, if the shares are granted to the <u>employees <\/u>and <u>if the shares are acquired not earlier than 3 years after the grant of the stock options<\/u>. Please note that there are additional conditions.<\/p>\n<p>With this amendment, stock options become more attractive employees\u2019 motivation tool.<\/p>\n<p>\u00a0<\/p>\n<p>Please be informed, that Leinonen tax team can provide tax advices related to PIT and various employees\u2019 benefit taxation which may be relevant to Your business and your employees.<\/p>\n<p>Information above was prepared by Leinonen Lithuania Tax Team.<\/p>\n<p> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>On 1 February 2020 amendment of part 1 of Article 17 of Lithuanian Law on Personal Income Tax (PIT), which lists non-taxable income of the residents of Lithuania, comes into force. The provision of the amendment states, that if the shares acquired free of charge or at preferential price not earlier than 3 years after [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"coauthors":[115],"class_list":["post-3269","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Changes in Stock Options taxation &#8211; Leinonen Lithuania<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/leinonen.eu\/ltu\/news\/changes-in-stock-options-taxation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Changes in Stock Options taxation &#8211; Leinonen Lithuania\" \/>\n<meta property=\"og:description\" content=\"On 1 February 2020 amendment of part 1 of Article 17 of Lithuanian Law on Personal Income Tax (PIT), which lists non-taxable income of the residents of Lithuania, comes into force. The provision of the amendment states, that if the shares acquired free of charge or at preferential price not earlier than 3 years after [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/leinonen.eu\/ltu\/news\/changes-in-stock-options-taxation\/\" \/>\n<meta property=\"og:site_name\" content=\"Leinonen Lithuania\" \/>\n<meta property=\"article:published_time\" content=\"2019-12-12T00:00:00+00:00\" \/>\n<meta name=\"author\" content=\"Evelina Daus\u0117nait\u0117\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@leinonengroup\" \/>\n<meta name=\"twitter:site\" content=\"@leinonengroup\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Evelina Daus\u0117nait\u0117\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/leinonen.eu\/ltu\/news\/changes-in-stock-options-taxation\/\",\"url\":\"https:\/\/leinonen.eu\/ltu\/news\/changes-in-stock-options-taxation\/\",\"name\":\"Changes in Stock Options taxation &#8211; Leinonen Lithuania\",\"isPartOf\":{\"@id\":\"https:\/\/leinonen.eu\/ltu\/#website\"},\"datePublished\":\"2019-12-12T00:00:00+00:00\",\"author\":{\"@id\":\"https:\/\/leinonen.eu\/ltu\/#\/schema\/person\/2fc3818e485d2badd9d4ef53b4d8f435\"},\"breadcrumb\":{\"@id\":\"https:\/\/leinonen.eu\/ltu\/news\/changes-in-stock-options-taxation\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/leinonen.eu\/ltu\/news\/changes-in-stock-options-taxation\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/leinonen.eu\/ltu\/news\/changes-in-stock-options-taxation\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/leinonen.eu\/ltu\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Changes in Stock Options taxation\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/leinonen.eu\/ltu\/#website\",\"url\":\"https:\/\/leinonen.eu\/ltu\/\",\"name\":\"Leinonen Lithuania\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/leinonen.eu\/ltu\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/leinonen.eu\/ltu\/#\/schema\/person\/2fc3818e485d2badd9d4ef53b4d8f435\",\"name\":\"Evelina Daus\u0117nait\u0117\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/leinonen.eu\/ltu\/#\/schema\/person\/image\/722d4af0a25d4b5f57902822e5049966\",\"url\":\"https:\/\/leinonen.eu\/app\/uploads\/2022\/11\/IMAGE-2022-11-22-62957-PM-96x96.jpg\",\"contentUrl\":\"https:\/\/leinonen.eu\/app\/uploads\/2022\/11\/IMAGE-2022-11-22-62957-PM-96x96.jpg\",\"caption\":\"Evelina Daus\u0117nait\u0117\"},\"url\":\"https:\/\/leinonen.eu\/ltu\/news\/author\/evelina-dausenaite\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Changes in Stock Options taxation &#8211; Leinonen Lithuania","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/leinonen.eu\/ltu\/news\/changes-in-stock-options-taxation\/","og_locale":"en_US","og_type":"article","og_title":"Changes in Stock Options taxation &#8211; Leinonen Lithuania","og_description":"On 1 February 2020 amendment of part 1 of Article 17 of Lithuanian Law on Personal Income Tax (PIT), which lists non-taxable income of the residents of Lithuania, comes into force. The provision of the amendment states, that if the shares acquired free of charge or at preferential price not earlier than 3 years after [&hellip;]","og_url":"https:\/\/leinonen.eu\/ltu\/news\/changes-in-stock-options-taxation\/","og_site_name":"Leinonen Lithuania","article_published_time":"2019-12-12T00:00:00+00:00","author":"Evelina Daus\u0117nait\u0117","twitter_card":"summary_large_image","twitter_creator":"@leinonengroup","twitter_site":"@leinonengroup","twitter_misc":{"Written by":"Evelina Daus\u0117nait\u0117","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/leinonen.eu\/ltu\/news\/changes-in-stock-options-taxation\/","url":"https:\/\/leinonen.eu\/ltu\/news\/changes-in-stock-options-taxation\/","name":"Changes in Stock Options taxation &#8211; Leinonen Lithuania","isPartOf":{"@id":"https:\/\/leinonen.eu\/ltu\/#website"},"datePublished":"2019-12-12T00:00:00+00:00","author":{"@id":"https:\/\/leinonen.eu\/ltu\/#\/schema\/person\/2fc3818e485d2badd9d4ef53b4d8f435"},"breadcrumb":{"@id":"https:\/\/leinonen.eu\/ltu\/news\/changes-in-stock-options-taxation\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/leinonen.eu\/ltu\/news\/changes-in-stock-options-taxation\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/leinonen.eu\/ltu\/news\/changes-in-stock-options-taxation\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/leinonen.eu\/ltu\/"},{"@type":"ListItem","position":2,"name":"Changes in Stock Options taxation"}]},{"@type":"WebSite","@id":"https:\/\/leinonen.eu\/ltu\/#website","url":"https:\/\/leinonen.eu\/ltu\/","name":"Leinonen Lithuania","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/leinonen.eu\/ltu\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/leinonen.eu\/ltu\/#\/schema\/person\/2fc3818e485d2badd9d4ef53b4d8f435","name":"Evelina Daus\u0117nait\u0117","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/leinonen.eu\/ltu\/#\/schema\/person\/image\/722d4af0a25d4b5f57902822e5049966","url":"https:\/\/leinonen.eu\/app\/uploads\/2022\/11\/IMAGE-2022-11-22-62957-PM-96x96.jpg","contentUrl":"https:\/\/leinonen.eu\/app\/uploads\/2022\/11\/IMAGE-2022-11-22-62957-PM-96x96.jpg","caption":"Evelina Daus\u0117nait\u0117"},"url":"https:\/\/leinonen.eu\/ltu\/news\/author\/evelina-dausenaite\/"}]}},"_links":{"self":[{"href":"https:\/\/leinonen.eu\/ltu\/wp-json\/wp\/v2\/posts\/3269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/leinonen.eu\/ltu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/leinonen.eu\/ltu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/leinonen.eu\/ltu\/wp-json\/wp\/v2\/users\/30"}],"replies":[{"embeddable":true,"href":"https:\/\/leinonen.eu\/ltu\/wp-json\/wp\/v2\/comments?post=3269"}],"version-history":[{"count":0,"href":"https:\/\/leinonen.eu\/ltu\/wp-json\/wp\/v2\/posts\/3269\/revisions"}],"wp:attachment":[{"href":"https:\/\/leinonen.eu\/ltu\/wp-json\/wp\/v2\/media?parent=3269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/leinonen.eu\/ltu\/wp-json\/wp\/v2\/categories?post=3269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/leinonen.eu\/ltu\/wp-json\/wp\/v2\/tags?post=3269"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/leinonen.eu\/ltu\/wp-json\/wp\/v2\/coauthors?post=3269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}