| Ministry of Finance and State Administration of Taxation Circular on Imposing Individual Income Tax on Individual Stock Option Income |
| Thursday,May 12,2005 Posted: 15:58 BJT(0758 GMT) |
| The Commercial Offices (Bureaus) in all the provinces, autonomous regions, municipalities and separately listed cities, local taxation bureaus:
In order to cater to payment system reform of the enterprises and reinforce imposition and management of individual income tax, matters of imposing individual income tax of enterprise stock option from enterprises staff are listed as follows: The income of stock option, which is granted to the staff from enterprises, shall be imposed with individual income tax in accordance with Individual Income Tax Law of PRC and relevant regulations. On condition that income is from subscription of stocks: Payable Tax= (income tax of payment in the form of stock option/ set months* applicable tax rates- rapid calculation of deducted amount) * set months On condition that income is from transfer of stocks, income tax shall be imposed or exempted in line with current tax law and policy regulations. The cisborder enterprises that implement stock option plan is the obligatory deduction person of the individual income tax, who shall fulfill the duties according to the relevant regulations. The certain staff shall declare and pay the relevant tax automatically. The cisborder enterprises that implement stock option plan are expected to submit relevant materials to responsible taxation institutions. Any enterprise that do not submit relevant materials and report forms or staff do not declare and pay relevant tax shall be punished in line with Law of Tax Imposition and Management of PRC. This circular takes effect as of July 1, 2005. Ministry of Finance State Administration of Taxation March 31, 2005 (All information published in this website is authentic in Chinese. English is provided for reference only. ) |
All articles marked with "Article type: Original" posted on the website of the Ministry of Commerce and its sub-sites are copyrighted by this Website and its sub-sites. Any reproduction or use by any other websites, media or individuals must be attached with a clear indication of "Source: Ministry of Commerce Website".
All articles posted on this website or its sub-sites marked with "Article type: reproduced" or "Article type: translated" and "Article type: redistributed" come from other media, and are provided solely for the user's information, which does not mean this Website or its sub-sites endorse the ideas thereof or assume any legal liability or responsibility for their authenticity. Any other media, websites or individuals must maintain the source of information indication on this Website or its sub-sites when using the information, and shall assume legal liability for the use.
