November 30 Economic Report: Employee Stock Options

The federal government confirmed that a cap will be applied to the preferred tax treatment of certain employee stock options in their November 30 Fall Economic Statement.  A correction has been made to our Special Report in regard to this figure.

The previously announced rules limiting the amount of employee stock options that can vest annually to $200,000 will come into force on July 1, 2021.  Options granted before that date will be subject to the old rules.  The new rules will apply to most corporations and mutual fund trusts.  The rules will NOT apply to:

• Canadian Controlled Private Corporations
• Non-CCPC employers with annual gross revenues below $500 million (this was previously incorrectly reported as $5 million.)

If you have not yet received your copy of this Special Report, be sure to subscribe to receive KBR by email, and a PDF will be available to you to download.