The revenue of a limited liability company employee resulting from an acquisition of derivatives in the form of an option should be qualified as a part of the income mentioned in art. 17, paragraph 1, sub-paragraph 10 of the Personal Income Tax Act. The resulting income should be subject to taxation in accordance with the rules outlined in art. 30b of the same act. Such is the position of the Director of the Tax Chamber in Katowice expressed in an individual interpretation of tax law with a signature nr IBPB-2-2/4511-5/15/MM.
The employee in question acquired derivatives of a parent company of the one which employed him. In this case, the objective of the derivative plan is to create a motivation system for board members, managers and other highly-qualified personnel.
Option are instruments, creating a property right to a certain monetary payout. This corresponds to the definition of legal derivatives in art. 5a, sub-paragraph 13 of the PIT Act and art. 2, paragraph 1, sub-paragraph 2 of the act on financial instruments.
The option contract is an agreement, where one party accepts the obligation to buy or sell a fixed volume of shares at a certain point in the future for a price fixed in advance or by means of a monetary settlement.
Consequently, the income acquired by the employee, calculated in accordance with art. 30b, paragraph 2, sub-paragraph 3 of the PIT Act will be taxed with a personal income tax at a rate of 19 percent. In addition to that, the employee in question will also be required to file a relevant PIT-38 form in a relevant tax office by April 30th of the next year after the income was acquired or the loss was incurred.
Klaudia Kaniecka, The Tax Committee of Employers of Poland