Tax on discount at purchase; no deduction available.

Tax on sale. Taxable amount is one half of any capital gain.

Generally, unavailable for stock-settled awards.

Income Tax:
Yes.

Social Insurance Contribution:
Yes, but subject to annual contribution ceiling. If applicable, employer has to pay employer contributions and withhold employee's contributions.

Provincial payroll taxes levied on employers may be payable on award income.

Provincial laws apply. In all provinces, most plans will be exempt from prospectus/dealer registration requirements.

Discretionary relief may be required in certain instances depending on specific plan terms.

No.

Generally not, provided employee signs agreement acknowledging discretionary nature of the plan.

According to recent case law, employees may be entitled to participate in plan through notice period, even if there is language in award agreement to the contrary.

As of 1 June 2022, award documents must be provided to employees in Quebec in French.

Please contact Baker McKenzie for details.

Federal law requires written consent from employees for collection, use or disclosure of data abroad. Special consent recommended for Quebec.