All paid benefits from the SARs to employees are fully tax deductible for corporate income tax purposes against 15% - 25%. This is the main advantage of SARs in comparison to awarding an option and/or shares as these are not tax deductible. The benefit deriving from the SARs will be taxed as salary for the employees against the progessive personal income tax rate from 37.10% up to a maximum of 49.50%. As the benefit will qualify as salary, the employer has the obligation to withhold and pay wage tax on these benefits against the same tax rates.