How taxable benefits from participation in incentive programs – Income tax


Incentive programs are a tool often used by international capital groups to reward employees and associates of the group companies. However, the participation of Polish taxpayers in the incentive program often causes doubts as to the tax qualification of benefits received as a result of the program implementation.

The most common incentive programs include Employee Stock Purchase Plan (hereinafter: ESPP) and programs, as a result of which selected persons associated with a company creating the program or its subsidiaries receive the so-called conditional stock units (Restricted Stock Units; hereinafter: RSU).

The essence of ESPP programs consists in granting selected employees or associates of the company or related companies the possibility of using the option to purchase shares of the company forming the program at a price lower than the market value of these shares on the date of purchase. Funds for the acquisition of shares are usually withheld by the partnership from the employee’s salary, and the shares are acquired on designated dates.

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When the incentive program uses the PIT preferences

In turn, conditional stock units (hereinafter: RSU) incorporate the employee’s or associate’s right to conditional, free of charge receipt of shares of the company establishing …


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