In German start-ups, Growth Shares are particularly intriguing for motivating key employees and late co-founders. This is especially true when the company has already reached a substantive equity value, making further stakes in the company hardly affordable or burdened with hefty taxes.
While for "standard" shares, the latest amendments of sec.19a German Income Tax Act (Einkommensteuergesetz – "EStG") now allow to defer the wage tax on the non-cash benefit, a better tax treatment can often be achieved with Growth Shares.
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