1. Pay in installments
(1) Investments in non-monetary assets are taxed in installments
Individuals investing in non-monetary assets shall declare and pay taxes to the in-charge tax authorities within 15 days of the month following the occurrence of taxable acts. If the taxpayer has difficulty in paying the tax at one time, he or she may reasonably determine the installment payment plan and report it to the in-charge tax authorities for the record, and pay the individual income tax in installments within no more than 5 calendar years (inclusive) from the date of occurrence of the above-mentioned taxable acts.
An individual's investment in non-monetary assets is a contemporaneous transfer of non-monetary assets and investment. For the income from the transfer of non-monetary assets by individuals, individual income tax shall be calculated and paid in accordance with the law according to the item of "income from property transfer".
If an individual invests in non-monetary assets, the realization of income from the transfer of non-monetary assets shall be recognized when the non-monetary assets are transferred or the equity of the invested enterprise is obtained.
Policy basis
1. 《《Cai Shui [2015] No. 41)
2. 《《State Administration of Taxation Announcement [2015] No. 20)
(2) Deferred tax payment of stock options, restricted stocks and equity awards granted to individuals by listed companies
1. From September 1, 2016, if a listed company grants stock options, restricted stocks and equity awards to individuals, individuals may pay individual income tax within a period of no more than 12 months from the date of exercising stock options, lifting the ban on restricted shares or obtaining equity awards after filing with the competent tax authorities.
Policy basis:
(1) Article 2 of the "Cai Shui [2016] No. 101).
(2) (Announcement No. 62 [2016] of the State Administration of Taxation)
2. From January 1, 2024 to December 31, 2027, for stock options, restricted stocks and equity awards granted to individuals by domestic listed companies, individuals may pay individual income tax within a period of no more than 36 months from the date of exercise of stock options, release of restricted shares or receipt of equity awards after filing with the competent tax authorities. If a taxpayer resigns during this period, he or she shall pay all taxes before leaving the company.
Policy basis: (Announcement No. 2 [2024] of the Ministry of Finance and the State Administration of Taxation)
(3) Small and medium-sized high-tech enterprises shall pay taxes in installments by increasing their share capital
Since January 1, 2016, when small and medium-sized high-tech enterprises nationwide transfer their share capital to individual shareholders with undistributed profits, surplus reserves and capital reserves, if the individual shareholders have difficulties in paying individual income tax at one time, they can formulate an installment payment plan according to the actual situation, pay in installments within no more than 5 calendar years (inclusive), and report the relevant information to the competent tax authorities for the record.
Individual shareholders who obtain the increased share capital shall be subject to individual income tax at a rate of 20% according to the item of "income from interest, dividends and bonuses".
Policy basis
1. 《》 (CS [2015] No. 116)
2. 《Announcement [2015] No. 80 of the State Administration of Taxation)
(4) High-tech enterprises transform scientific and technological achievements to pay taxes in installments
Since January 1, 2016, high-tech enterprises nationwide to transform scientific and technological achievements, to the relevant technical personnel of the enterprise equity awards, individuals have difficulty in paying taxes at one time, according to the actual situation of their own installment payment plan, in no more than 5 calendar years (inclusive) installment payment, and the relevant information reported to the competent tax authorities for the record.
When an individual receives an equity award, the tax payable shall be calculated and determined according to the item of "income from wages and salaries".
Policy basis
1. 《》 (CS [2015] No. 116)
2. 《Announcement [2015] No. 80 of the State Administration of Taxation)
2. Deferred tax payment
(1) Scientific research institutions and institutions of higher learning transform scientific and technological achievements on duty
Since July 1, 1999, scientific research institutions and institutions of higher learning have given individual rewards in the form of shares or equity such as capital contribution ratio, and the awardees are not required to pay individual income tax when they obtain shares and capital contribution ratios; When obtaining dividends according to the proportion of shares and capital contributions, or income from the transfer of equity and capital contribution, individual income tax shall be paid in accordance with the law.
Policy basis:
1. 《《Cai Shui Zi [1999] No. 45)
2. 《》 (Guo Shui Fa [1999] No. 125)
(2) Obtaining stock options, equity options, restricted stocks and equity awards from non-listed companies
Since September 1, 2016, if a non-listed company grants stock options, equity options, restricted shares and equity awards to its employees, if it meets the prescribed conditions, it can implement a deferred tax policy after filing with the competent tax authorities, that is, employees can temporarily waive tax when they obtain equity incentives and defer tax payment until the transfer of such equity; In the case of equity transfer, the "income from property transfer" item shall be applied according to the difference between the equity transfer income after deducting the cost of equity acquisition and reasonable taxes and fees, and the individual income tax shall be calculated and paid at a rate of 20%.
Policy basis:
1. Article 1 of "Cai Shui [2016] No. 101).
2. 《《State Administration of Taxation Announcement [2016] No. 62)
Business scenario: Company A is a non-listed company, in January 2022, 50,000 stock options were granted to Wang, and Wang exercised the option on January 1, 2023, and purchased 50,000 shares at a price of 4 yuan per share, and the market price on that day was 6 yuan per share. Wang transferred the stock on January 1, 2024, at a transfer price of 7 yuan per share.
Analysis: On the exercise date, Wang obtained income (6-4) * 50,000 = 100,000 yuan, and should pay individual income tax according to the income from wages and salaries.
If the stock incentive of Company A meets the seven conditions for enjoying deferred tax as stipulated in Cai Shui [2016] No. 101, the 100,000 yuan obtained by Wang will not be taxed temporarily. When Wang transfers on January 1, 2024, he will pay individual income tax according to the income from property transfer (7-4) * 50,000 * 20% = 30,000 yuan.
If he does not meet the conditions for deferred tax payment, Wang needs to calculate and pay individual income tax in January 2023 according to his salary income and comprehensive income.
(3) Investment in technological achievements
Starting from 1 September 2016, if an enterprise or individual invests in a domestic resident enterprise with technological achievements, and the consideration paid by the invested enterprise is all stocks (rights), the enterprise or individual may choose to continue to implement the current relevant tax policies (Note 1) or choose to apply the preferential tax deferral policy. If the deferred tax policy for investment in technological achievements is selected, the tax may not be paid for the current period of investment after filing with the competent tax authorities, and it is allowed to defer until the transfer of equity, and the income tax shall be calculated and paid according to the difference between the income from equity transfer minus the original value of technological achievements and reasonable taxes and fees.
Note 1: According to the provisions of the "Cai Shui [2015] No. 41) and the "Announcement No. 20 of the State Administration of Taxation [2015]), an individual's investment in non-monetary assets is a concurrent transfer of non-monetary assets and investment. For the income from the transfer of non-monetary assets by individuals, individual income tax shall be calculated and paid in accordance with the law according to the item of "income from property transfer". If an individual invests in non-monetary assets, the income from the transfer of non-monetary assets shall be recognized at the fair value after appraisal. The balance of the income from the transfer of non-monetary assets after deducting the original value of the assets and reasonable taxes is the taxable income. If an individual invests in non-monetary assets, the realization of income from the transfer of non-monetary assets shall be recognized when the non-monetary assets are transferred or the equity of the invested enterprise is obtained. Individuals should declare and pay taxes to the in-charge tax authorities within 15 days of the month following the occurrence of the above-mentioned taxable acts. If the taxpayer has difficulty in paying the tax at one time, he or she may reasonably determine the installment payment plan and report to the in-charge tax authorities for the record, and pay the individual income tax in installments within no more than 5 calendar years (inclusive) from the date of occurrence of the above-mentioned taxable acts.
Policy basis:
1. Article 3 of "Cai Shui [2016] No. 101).
2. 《《State Administration of Taxation Announcement [2016] No. 62)
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