Announcement on Individual Income Tax Policies Related to Equity Incentives of Listed Companies Announcement No. 2 of 2024 of the Ministry of Finance and the State Administration of Taxation In order to support the innovation and development of enterprises, the individual income tax policies related to equity incentives of listed companies are hereby announced as follows: 1. For stock options, restricted stocks and equity awards granted to individuals by domestic listed companies, individuals can exercise their rights from stock options after filing with the competent tax authorities. Individual income tax shall be paid within a period of no more than 36 months from the date of release of restricted shares or the acquisition of equity awards (hereinafter referred to as exercise). If a taxpayer resigns during this period, he or she shall pay all taxes before leaving the company. 2. The term "domestic listed company" mentioned in this announcement refers to a company limited by shares whose shares are listed and traded on the Shanghai Stock Exchange, Shenzhen Stock Exchange and Beijing Stock Exchange. 3. This announcement shall be implemented from January 1, 2024 to December 31, 2027, and taxpayers who exercise their rights during this period may be implemented in accordance with the provisions of this announcement. If the taxpayer exercises the right after January 1, 2023 and has not paid the full amount of the tax, it can be implemented in accordance with the provisions of this announcement, and the time limit for paying the tax in installments shall be calculated from the date of its own right. 4. The securities regulatory department shall establish an information sharing mechanism with the tax department, share the relevant information on equity incentives of listed companies with the tax department on a quarterly basis, and the financial, taxation and securities regulatory departments shall jointly implement the policy. 5. The following documents or provisions shall be repealed at the same time: (1) Item (1) of Article 2 of the Notice of the Ministry of Finance and the State Administration of Taxation on Improving the Income Tax Policies Related to Equity Incentives and Technology Shareholding (CS [2016] No. 101). (2) Notice of the Ministry of Finance and the State Administration of Taxation on the Policy of Installment Tax Payment of Equity Incentives in the Core Area of Zhongguancun National Independent Innovation Demonstration Zone (Haidian Park) (CS [2022] No. 16). The announcement is hereby made. Ministry of Finance, State Administration of Taxation, April 17, 2024
Source: Treasury Department of the Ministry of Finance
Edit: Ruyue
The 2024 annual magazine of "New Finance" is now open for subscription!
For communication, cooperation, contributions, and copyrights, please add WeChat: cfo920
Statement: The articles, pictures, etc. published in the WeChat official account of "New Wealth Management" belong to the relevant rights holders, if there is improper use due to objective reasons, please contact us to delete or modify them in a timely manner in accordance with the law.