Management incentive plans

When constructing management and employee incentive plans, taxation may play an important role in achieving the desired alignment of the shareholders, the company and the managers/employees.

When setting up incentive plans we aim to create a solid structure, with attention to the Dutch wage tax and the so-called “lucrative interest” legislation at an early stage. If desired, we can seek advance clearance for company valuations and recommended structures from the Dutch tax authorities. This provides all parties with clarity on their Dutch tax position.

Our international focus means that we are very well equipped to advise on incentive plans involving managers and employees from multiple jurisdictions. Our knowledge of the Dutch double taxation treaties and our international network of boutique (tax) law firms contribute to the complete and thorough advice we provide.

We also advise on management contracts, including taking relevant wage tax into account and considering employee insurance issues for the manager.