When a corporation agrees to sell or issue its shares to an employee, or when a mutual fund trust grants options to an employee to acquire trust units, the employee may receive a taxable benefit.
New For security options granted on or after July 1, 2021 (other than options granted after June 2021 that replace options granted before July 2021), the employee is subject to a $200,000 annual vesting limit under paragraph 110(1)(d) if the qualifying person meets both of the following conditions:
• is not a Canadian-controlled private corporation
• has, or is part of a consolidated group that has, gross revenues of more than $500 million
For more information, see Option benefit deductions.
- What is a security (stock) options taxable benefit?
What is the benefit? Types of options. When is it taxable?
- Deduction for charitable donation of securities
Conditions to meet to get the deduction when the security is donated.
- Option benefit deductions
Conditions to meet to be eligible for the deduction.
- Reporting the benefit on the T4 slip
Codes to use on the T4 slip.
- Withholding payroll deductions on options
Find out when you need to withhold CPP contributions or income tax from options. (EI premiums do not apply to options.)
Forms and publications
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