Print This Page

Date:   26 Mar 2008
From:   Michael

Dear Michael Gray,

Can stock option plans of foreign corporations qualify as ISOs?

Best regards
Michael

Answer

Date:   10 Apr 2008

Hello Michael,

Yes. However, there are a lot of technical requirements to qualify to be an ISO, including stating on the option grant that it is an ISO. If a foreign company wants to issue employee stock options qualifying as ISOs for their U.S. citizen or U.S. resident employees, it should have a good lawyer help it create and implement the plan.

Good luck!

Mike Gray

For more information about incentive stock options, request our free report, Incentive Stock Options - Executive Tax and Financial Planning Strategies.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.