Box 1 - income from employment and home: When stock certificates are granted to the employee as a form of compensation for performed work, the benefit (difference between market value and paid price) is usually taxed as income in Box 1. This means that the employee is liable to pay income tax on this benefit at the progressive rate of Box 1. In this case, the employer is responsible for withholding and remitting the applicable wage tax (income tax and social insurance contributions) to the Tax Authorities. The employee will then see this on their paycheck.
Sale of certificates: If the employee later decides to sell the stock certificates and makes a profit, this profit is usually taxed in Box 2 (income from substantial interest) if the employee has a substantial interest in the company (typically defined as 5% or more of the shares or certificates). If the employee does not have a substantial interest, any profit from the sale is generally tax-free.
Dividends: If dividends are paid on the stock certificates, this dividend is usually taxed in Box 2 if the employee has a substantial interest. If there is no substantial interest, the dividend could potentially be taxed in Box 3. However, currently, the Netherlands does not tax actual received returns in Box 3. Instead, it is taxed on a presumed (fictional) return on the total assets.
Box 3 - income from savings and investments: If the employee retains the stock certificates and there is no substantial interest, the certificates are taxed in Box 3. Here, the assets are taxed at a presumed (fictional) return. The employee must declare the value of the certificates in their annual tax return.