Guo Bohao, a reporter from the Securities Times, he Jueyuan

April 26thPlayvideopokergamesThe Ministry of Finance and the State Administration of Taxation issued the announcement on individual income tax Policy on Equity incentive of listed companies. On the basis of previous policies, the announcement extends the personal income tax period for stock options, restricted stocks and equity incentives of listed companies to no more than 36 months.

According to the previous regulations, the stock options, restricted stocks and equity awards granted by listed companies to individuals may be paid personal income tax within a period of not more than 12 months from the date of the exercise of stock options, the lifting of the ban on restricted stocks or the acquisition of equity awards (hereinafter referred to as "exercise power").

The announcement points out that for people who enjoy equity incentives, individual income tax shall be paid within a period of no more than 36 months from the date of exercise. If a taxpayer leaves office during this period, he or she shall pay all taxes before leaving office. The notice also repeals the provisions of the above-mentioned documents.

Sun Kunpeng, associate professor of the School of Finance and Taxation of the Central University of Finance and Economics, pointed out in an interview with the Securities Times that the tax obligation of equity incentive has already been created when exercising the right. If the employee pays tax during the exercise of the right, although the employee gains the stock at this time, the stock is not turned into cash. At this time, paying tax will bring great financial pressure to the employees, resulting in a low enthusiasm for employees to participate in the incentive plan. After the extension of the tax period, the pressure for employees to participate in equity incentives will be much less, and they will be more willing to hold the company's shares. Especially for the personnel with more stock options, the amount of tax to be paid is larger, and the extension of the tax time limit can alleviate the cash flow pressure of the relevant personnel.

At the same time, "the period for the payment of individual income tax related to equity incentives has been extended from 12 months to no more than 36 months, which also gives more relaxed time for employees to realize equity incentives." Sun Kunpeng explained to the reporter that after the equity incentive exercise, the shareholding employees need to pay a larger amount of personal income tax, and some people will choose the stock option incentive to cover the personal tax payment, and after extending the payment period, it will give shareholders more opportunities to cash in, and they can choose the high point of the stock price within 36 months, which greatly enhances the liquidity flexibility and helps to increase the income of taxpayers.