We all have heard and know of people becoming millionaires overnight with “stock option” money, especially in Silicon Valley. Stock options are an important part of the compensation package for many employees in the technology sector. For companies, it is a tool to retain employees and motivate them to perform better as the company’s growth and success translates to their success.
The most common types of stock options are Incentive Stock Options (ISO’s) and Non-Qualified Stock Options (NQSO’s). The tax consequences to employees are as follows:
Incentive Stock Options (ISO) (more…)
By Blake Larum, Senior Tax Manager
ASL Technology Group
The recent worldwide phenomenon of Pokémon Go raises some interesting questions regarding state taxation. The app itself is free, however there are premium features that cost the user money and thus create revenue for the Company who developed it. Niantic, Inc., who collaborated with Nintendo to develop Pokémon Go, also generates revenue from corporate sponsorships. This is similar to “product placement” in movies and television shows, a form of advertising revenue for the Company. This advertising revenue, along with the direct digital revenue generated from the purchase of premium features within the game, results in roughly $1.5M of revenue per day for Niantic. This article will focus on the digital revenue and its potential state tax impact. (more…)
The European Commission ruled against two of its’ member states tax rulings in Luxembourg and the Netherlands to recover between $22.3 million and $33.5 million in unpaid tax each from Starbucks and a Fiat Chrysler unit. This article looks at the commission’s determination that tax rulings granted to the two companies artificially lowered each firm’s tax burden and is illegal under European Union (EU) state aid rules.