Circular on the tax treatment applicable to stock option plans

A new circular on the tax treatment applicable to stock option/warrant plans was issued by the Luxembourg tax authorities on 29 November 2017. Circular L.I.R. n° 104/2 (i) raises the valuation of freely negotiable options which are not listed on the stock exchange, (ii) introduces clarifications regarding the eligibility of employees to option plans and (iii) provides details on the reporting obligations to the tax authorities.