Germany Enhances Employee Ownership Opportunities

Under prior law, German employees could receive an annual tax credit of 135 Euros on the purchase of shares in their company. Shares are typically offered at a discount, frequently 20%. The new law increases that to 360 Euros. That means, for instance, employees would not be taxed on the 20% discount they receive when purchasing 1,800 Euros worth of shares. The program is still modest relative to similar kinds of arrangement in the UK and France, where much larger amounts can be purchased in tax-advantaged ways.

A good source on ongoing press information about employee ownership in Europe is the European Federation of Employed Shareholders, which offers links to press stories on a monthly basis.