Shares acquired through the redemption of an option

An option is an agreement between an owner and an issuer. It gives the owner an entitlement, but not an obligation, to purchase or sell an asset (the underlying object) from/to the issuer during a specific period or at a specified time, for a predetermined price (strike price). 

  • This doesn't apply to subscription rights for shares. These follow the normal rules concerning shares.
  • Nor does it apply to issuing rights for shares (warrants).
  • It applies to both employment-related and non-employment-related share options. In employment situations, there may also be a purchase or sales obligation.
  • This applies only to personal shareholders.

Where can I find out if I have obtained shares acquired through the redemption of an option?

There will normally be an option agreement, which will generally be stated in a written agreement. It may also be stated in your employment contract.

How is the input value determined?

Purchase option: You acquire the shares by redeeming the option. The input value is defined as the market value at the time of redemption after any gain or loss settlement associated with the redemption of the option itself.

Sales option: The company acquires your shares by redeeming the option. (Your input value for the shares themselves will not be affected by the redemption, but will follow the ordinary rules for shares). The company's input value for the shares is defined as the market value of the shares at the time of redemption.

In the event of the stock exchange listing or other listing of the shares, the market value will normally be defined as the most recent listed price on/in relation to the redemption date. If the remaining bid price is higher than the most recent list price or the remaining offer price is lower than the most recent list price, this price will be used.

The expected sales value may be used as a basis in cases where it is likely that the list price will not give a reliable indication of the market value, e.g. due to low turnover.

Regarding "Særregler om utsatt skattlegging for opsjoner i oppstarts- og vekstfasen” (“Special rules regarding deferred taxation on options in the start-up and growth phase” – in Norwegian only) see the guide Skatte-ABC (in Norwegian only) under the topic Finansielle instrumenter – opsjoner mv. i arbeidsforhold (Financial instruments – employment-related options, etc.).