Employee participation through GmbH tokens via Tokenize.it offers an alternative to traditional ESOP and VSOP models.
In designing the GmbH token, we prioritized creating advantages for both founders and employees.
Through tax-optimized employee participation with Tokenize.it, employees can share in the company's profits through dividend distributions.
Our agreements have been crafted and tax-optimized by an international law firm. The token options are taxed at the personal income tax rate when exercised or received (as a "non-cash benefit"). This means GmbH tokens become tax-relevant for employees only upon their creation on the blockchain ("minting").
Unlike ESOP or VSOP programs, you can choose this timing freely and manage it through our dashboard. Neither the accumulation of token options visible in the dashboard nor the signing of the allocation agreement triggers any tax obligations.
This approach eliminates the "dry income" challenge common in ESOP programs. While taxation is determined at the exercise date, payment of these taxes often isn't required immediately. Under the Future Financing Act, small and medium-sized enterprises (SMEs) can defer payment until the earlier of: 15 years, company sale, or token sale.
Furthermore, any value increase in GmbH tokens after exercising options is subject to capital gains tax. This feature isn't available with VSOP contracts, making the GmbH token an optimal tax vehicle for employee participation. For specific tax matters, please consult a tax advisor.
Unlike typical ESOP or VSOP programs, GmbH token participation allows employees to receive dividends without requiring an exit event.
This means you can benefit from company profits throughout your employment.
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