Memorandum on Stock Option plans
Employer's withholding requirement

Income tax

If the person who grants the option is a Belgian resident entity, it will be under the obligation to comply with the formalities related to the income tax deducted at source (PAYE) on the taxable option value that crystallises on the 60th day following the offer date. If the person who grants the option is a non-resident entity, there are no such formalities (PAYE) to be complied with by this person or by the Belgian employer (except if the Belgian employer is a branch of that foreign entity).

The option can be regarded as granted by a non- resident company and not by the Belgian employer, if the grant is at the sole grace of the non-resident company and provided the Belgian employer is not involved in the administration of the grant. Appropriate advice should be sought with PricewaterhouseCoopers with respect to any withholding tax requirements that should be complied with by your company by reason of the granting of options to its employees.

Social security contribution

If social security contributions are due, the employer will have to remit the employer's and employee's social security contributions to the authorities and comply with the ONSS/RSZ return formalities.