(USA) Stock options that do not qualify for special tax treatment. Accordingly, there are no limitations on the exercise price, person to whom granted, etc. In the USA, the option holder has no tax at the time of grant, but will have ordinary taxable income at the time of exercise equal to the difference between the exercise price on the date of option exercise and fair market value on that date. The company generally may take a deduction at the same point in an equal amount if the option was issued as compensation. The taxation regime in other countries is often different from this, but non-qualified options are increasingly being used as part of executive remuneration packages. See 'Incentive Stock Options or ISOs' for comparison.