This is a critical factor impacting the attractiveness of stock options. The later they are taxed, the better. Not only for the employee – but in our opinion, also for governments, because tax-receipts are maximised by targeting the point of greatest financial upside. We have six specific policy recommendations to encourage employee ownership in startups: [...] 3. Defer employee taxation to the point of sale of shares, when employees receive cash benefit for the first time. [...] 5. Apply capital gains (or better) tax rates to employee share sales. Unverified source (2018)