Security options

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.

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