We help Startups to set up the new tax efficient employment incentive schemes in Germany and track all necessary data points in our system
Together with our partner PXR we offer a seemless implementation of the new EIP. We will take care of everything from setting up the SPV to transferring existing ESOPs. Like that you have the EIP implemented in days instead of months.
Once you implemented the EIP you have to track all necessary data points to ensure tax compliance. We have the system you need to keep up with your obligations with ease.
You want to get the most out of your EIP structure. We build the employee experience you need. With GAIA you can keep your employees informed about the current value and vesting progression.
1.
Digital infrastructure for administration and tracking
2.
Contractual setup
3.
GAIA Equity Management
4.
Binding ruling from tax authorities
Optional
5.
Termination of trust structure by employees
Optional
Annual Fee
Setup Fee
Below 15 participants
per year
Annual fee per year
EIP as initial program
Setup fee (EIP as initial program)
Between 15 and 75 participants
per year
Annual fee per year
Starting from
Setup fee starting price
Above 75 participants
starting from per year
Annual fee per year
Starting from
Setup fee starting price
GAIA is available for SMEs and Startups that look into automating contracts and legal tasks compliantly with AI. Request a Demo call for free through our website or contact us at contact@gaia.law.
GAIA lets Legal, Finance, and HR teams spend less time on creating and managing contracts & documents and focus more on their actuall work. By having always up-to-date legal knowledge and the latest legal AI advancements, companies can unlock more growth while ensuring legal compliance and security.
GAIA is an AI powered software for SMEs and Startups to create, sign, and manage contracts. Making it easy for everyone to complete legal tasks wether you are a legal professional or someone who looks to compliantly automate their legal tasks.
Our prediction: VSOP programs will only exist for special use cases in the startup sector in future (or if a company has "outgrown" the scope of application of Section 19a German Income Tax Act). The same applies to pure option programs (ESOP) without the possibility of exercise prior to an exit or IPO.
The new Section 19a German Income Tax Act now provides for the initial taxation to be deferred until the shareholding is actually sold. Only then - i.e. when sufficient liquidity is available - is the initial taxation made up for. The appreciation in value realized on the sale is subject to capital gains tax. The latter is a tax advantage which means that employees are taxed almost as favorably as founders or investors. Any losses are taken into account for tax purposes, i.e. subsequent taxation only takes place on the actual "final value".
Existing programs may easily be converted into the new EIP for current employees.
No, not necessarily. The framework of Section 19a German Income Tax Act offers sufficient ways for a structure that does not require regular visits to a German notary. Such an arrangement can, for example, be implemented by a limited partnership structure, which holds shares for the respective employees. Comparable structures have been used successfully for some time in the area of private equity management participations.