This page can be used to check the tax consequences following the exercise of GitLab stock options. The Tax Team will try to do its best to cutting through complexity for you. However, the information on this page should be used for discussion purposes only. For any personal advice please reach out to a tax professional.
Stock Option Plan
Taxed at Exercise
The "spread": Difference between the Offer Price and Exercise Price
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 1,440 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 9,984 to EUR 277,826 (single taxpayer, 2022).
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.
Monthly Tax Reporting:
Annual Tax Reporting: