Managing options for employees including trusts in the framework of Section 102 of the Income Tax Ordinance in Israel
Our Firm has considerable experience in the field, including establishing trusts according to the provisions of Section 102 of the Income Tax Ordinance. We have served for many years as Trustees to many private and public companies. We operate in this framework through B.I.A.D. Trust owned by us, which has a general approval from the Income Tax Commission as a Trustee.
Operations of a Trustee according to the provisions of Section 102 of the Income Tax Ordinance in Israel
A plan for a new allotment
When making a new allotment our activities as a Trustee will be expressed by:
- Consulting in designing an options plan suitable for the customer’s needs.
- Review of the agreements and signature as a Trustee on the required documents.
- Obtaining the approvals required from the Income Tax Commission.
Reporting to the Income Tax Commission (102).
Every year a report will be sent by computerized reporting to the Assessing Officer on making allotments to employees and changes in shareholdings by employees, and this according to the requirements of the Regulations and according to the obligation as a Trustee.
Activities when carrying out “Exercises”
At this stage we handle the calculation of income tax as applies to each employee, tax withholding, delivering reports both to income tax and employees, releasing shares from our trust, etc.