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Study On Taxation Of Cross-border Employee Stock Option

Posted on:2009-07-24Degree:MasterType:Thesis
Country:ChinaCandidate:Q LiFull Text:PDF
GTID:2166360242987605Subject:International Law
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As a result of being used by multinational enterprises to encourage employment performance and attract and retain human talent, ESO (Employee Stock Option) has made a new estate of wealth, following which is the taxation of this new kind of income. Many countries around the world have developed their own rules in respect of taxation of ESO and practically China also levy tax against ESO. Along with the participation of China into the process of economic globalization and continuous increase of foreign direct investment, ESO has become of more and more international factors. Especially after China's entry into WTO, international flowage of capital and people has extremely intensified. China's tax authority will face more legal issues in respect of taxation of ESO. Under such circumstances, China has to make its relevant system better adapt to the reality.There whole thesis is divided into five parts, from the preface to the ending part. The main body is focused on the three chapters. Chapter 1 starts with the introduction of Cross-border ESO, including theconcept, characteristic and classification of ESO, the operation of ESO and the general theory of taxation of ESO. Chapter 1 is the theoretical foundation of the Chapter 2.Chapter 2 moves into the legal issues in respect of taxation of cross-border ESO. This chapter mainly discusses the conflicts of tax jurisdiction and double taxation of ESO after explained the necessity and complexity of taxation of cross-border ESO. In the latter part, Chapter 2 introduces Commentary on OECD Model Tax Convention and OECD Report by OECD's Committee on Fiscal Affairs named"The Taxation of Employee Stock Option". The Commentary and Report is the most important study work of OECD on this subject and can be of great help to China's legislation.Chapter 3 continues the discussion how to improve the taxation of cross-border ESO in China. It introduces the quo status and limitation of China's relevant legislation and brings forward some legislation advices thereon based on the analysis before.In the ending part, the principle for both legislation and practice of taxation of cross-border ESO which is keeping balance between national fiscal interest and encouragement of ESO is emphasized again.
Keywords/Search Tags:Cross-border Employee Stock Option, Conflicts of Tax Jurisdiction, Double Taxation
PDF Full Text Request
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