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Tax Treatment of Stock Options as Employee of GitLab GmbH

Equity Award

Stock Option Plan

When taxed?

Taxed at Exercise

What is taxed?

The "spread": Difference between the Offer Price and Exercise Price

Subject to tax withholding?

GitLab must withhold income tax on the taxable amount and remit by the 10th day of the month following the month in which the taxable event occurs. EUR 360 of the taxable amount may be exempt from income tax withholding (see below).

An employee may be able to deduct EUR 360 per year from the taxable amount provided the equity award was offered in a uniform manner to all employees working for the employer for at least one year and the employee has not already used this deduction in connection with other acquisitions of GitLab shares during the calendar year. GitLab should confirm whether this tax deduction applies to the employee to determine the appropriate tax withholding amount. Income tax is imposed at a rate of 14% to 42% on annual income between EUR 9,169 to EUR 265,326.

Social Insurance Contribution Withholding?

Yes (capped)

Employer Social Insurance Contribution Requirement?

Yes (capped)

Employee Maximum Combined Tax Withholding Rate

51.525%

Social Insurance Contribution Withholding/Payment detail

GitLab must withhold estimated employee social insurance contributions and remit both employee and employer estimated social insurance contributions by the third bank working day before the end of the month in which the taxable event occurs; any unpaid social insurance contributions should be remitted with the following month's contributions.

Employee Rate:

Employer Rate:

Employer Compliance/Tax Reporting

Monthly Tax Reporting:

Annual Tax Reporting: