“Employee Shareholding – experiences and perspectives”

Paweł Kawarski        31 August 2015        Comment (0)

While looking for ideas for next posts I have come across a report concerning the conference entitled “Employee Shareholding – experiences and perspectives” organized by Department of Labour Law of the Polish Academy of Science on 22 May 2014.

The conference hosted a number of prominent guests: scientists, representatives of Ministry of Economy, French Chamber of Industry and Commerce in Poland (La Chambre de Commerce et d’Industrie France PologneCCIFP), and entrepreneurs, including Auchan as the special guest. Many interesting issues, historical and current ones, were discussed. However, I would like to draw readers’ attention to one, particular area, namely, if there are any obstacles preventing development of employee shareholding in Poland.

The representative of CCIFP identified the following impediments:

– taxation of loans extended to employees for their subscription/purchase of shares;

– taxation of discount upon subscription of shares;

– taxation of revenues from redemption of units in FCPEs (Fonds Commun de Placement d’Entreprise, i.e., French collective employee-shareholder vehicles);

– unclear and imprecise tax regulations regarding tax treatment of share options (upon their grant and exercise);

– taxation of options;

– taxation of phantom shares.

Based on this brief report one may conclude that Polish tax regulations are the main obstacles of development of share ownership for local employees. From my observations it appears that after more than a year since the time of the conference, the situation has not changed.

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