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Let's say an employer offers an stock purchase plan of 100EUR contribution from NET monthly salary of the employee across a quarter, that will be 300EUR total.

Now let's say the employee at the end of the quarter decides to sell the shares and get back cash, assuming that the share price is THE SAME and haven't changed, this means that the shares are worth 300EUR.

My question is, will the employee get 300EUR back? Or will those be taxed before the employee gets them?

Further extending the situation, what happens in case of profit and loss? Please note that I'm not taking into consideration any grants at all.

Thanks for helping.

  • What country is this? Options, and option tax arrangements, are really diverse. BTW do you really mean "options" on shares or in this scheme do you get shares as such? – Fattie Oct 1 at 13:02
  • This sounds similar to an employee stock purchase plan (ESPP) in the US. Here, you only pay taxes on any discounts on the purchase price, or capital gains on the shares, but otherwise you just "get back" what you put in. I can't speak for Germany though. – Dan A. Oct 1 at 13:25
  • It is Germany, I've updated the question title. Regarding what I mean by options, it's basically similar to the employee stock purchase plan Dan A. has mentioned. – Kareem Oct 1 at 13:27
  • At the end of the quarter, are you able to buy the shares at a discounted price, or do you pay whatever the current share price is? – Dan A. Oct 1 at 13:29
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    @Kareem , I believe there is no connection at all to "options" (which are quite different from stock). I am going to remove mentions of "options" from the question. (You naturally can and should edit as you wish!) – Fattie Oct 1 at 14:00

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