Taxation of shareholder options - Part 3: Assessment of individual cases for put options

Learn in the last part of our series how the issuance of put options is treated for tax purposes, especially in the context of capital reductions.

2018

Taxation of shareholder options - Part 3: Assessment of individual cases for put options

If shareholder options are issued free of charge or at a price below the market value, this may lead to different tax consequences. The first article in this series explained the basics. The second article presented the specific tax valuations for call options. This last article deals with the details concerning put options.

Issuance of put options with capital reduction

‍When it is decided to grant the shareholders a subscription right for put options in view of a capital reduction, with the exercise modalities designed to keep the existing ownership ratios unchanged, this remains tax-neutral with respect to direct federal tax and withholding tax, provided the following aspects are cumulatively met:

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