New Treatment on Individual Income Tax for Employee Stock Options

by Sabrina Zhang, North China Regional Partner, Dezan Shira & Associates

Recently, the Ministry of Finance and the State Tax Administration of Taxation jointly issued a new circular, namely Cai Shui [2005] 35 to elaborate Individual Income Tax ("IIT") treatments for stock option benefits. The relevant IIT treatments took effect on 1 July of this year.

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This article included in China Briefing Magazine

September 2005: Cultural Differences When Managing Chinese Financial Reporting

Other articles in this issue: Cultural Differences In Understanding Chinese Financial Reporting & Common Accounting Practices in the PRC by Dezan Shira & Associates, Investment Intelligence Unit, Greater China Qualifying Bad Debt in your China Accounts by Dezan Shira & Associates, Investment Intelligence Unit, Greater China Correctly Assessing The Ratios of Total Investment (TI) and Registered Capital (RC) in Your China Business by Alberto Vettoretti, South China Regional Partner, Dezan Shira & Associates