Ontario Research Employee Stock Option Credit

Notice to the reader: The Ontario Research Employee Stock Option Credit was available for taxation years up to and including 2009. The tax credit is not available after December 31, 2009.

• Where can an employee obtain the application forms?
• Is there a deadline for an eligible employee to apply for the credit?
• What information does an employer have to provide to its employees and the Ontario Ministry of Finance?

Where can an employee obtain the application forms?

Application forms are available on this website. Taxpayers can also call the ministry at 1 866 668-8297 to request an application.

Is there a deadline for an eligible employee to apply for the credit?

An eligible employee must apply to the Ontario Ministry of Finance on or before September 30 of the second calendar year beginning after the taxation year to which the refund relates.  For example, the deadline for applying for a refund that relates to the 2004 taxation year is September 30, 2006.

What information does an employer have to provide to its employees and the Ontario Ministry of Finance?

For each relevant fiscal year, the eligible employer is required to:

• certify to the Ministry of Finance that it is an eligible employer
• provide the Ministry of Finance with a list of eligible employees, their Social Insurance Numbers (SINs) and the date that the stock option agreements were entered into, and
• provide the same employee-specific information to each eligible employee.

For each calendar year, the eligible employer is required to provide the Ministry of Finance with:

• the name and SIN of each eligible employee who has received a taxable benefit, or who has elected to defer receiving a benefit relating to an eligible stock option agreement, and
• the amount of the taxable benefit and the amount of the benefit that has been deferred by the employee. The employer must also notify each eligible employee that the benefit relates to an eligible stock option agreement.