Non-listed limited companies: Will you offer shares to employees? Collect the required data in order to prepare an annual information return later

News, 12/9/2020

A new provision on non-listed companies’ personnel offerings enters into force on 1 January 2021 (§ 66 a of the act on income tax (Tuloverolaki 1535/1992)). The provision is applied if your company makes a decision to offer shares to employees after the provision’s entry into force.

When non-listed limited liability companies issue shares to employees, the subscription price may be lower than the shares’ market value. However, if the subscription price is at least equal to the share’s mathematical value, an individual employee who buys such shares will not be treated as having received a taxable benefit.

Submit the required data on an annual information return

A non-listed limited liability company must report on their personnel offering by filing an annual information return. The information on personnel offerings for 2021 must be submitted by the end of January 2022.

The required information includes details on the company, the personnel offering and the employees who participated in the offering. The information is submitted electronically in the service or in the Tax Administration’s e-service. You can start filing information in November 2021.