Legal Regulation Of Personal Income Tax Of Stock Option In China

Stock Option( hereinafter referred to as "SO") is referred to as a certain right, provided by the owners of a target company to certain people, which means purchasing some stated shares of the target company at a fixed price in a definite period.Practically testified, it is greatly effective for enterprises to attract and detain the superior managers and technologists as far as "SO" is concerned. With the deepening of the enterprises reform in P.R.China, domestic enterprises are gradually identifying with "SO" and then putting it into practice. As far as taxes concerning the "SO" ,there is not any special law or regulation .In fact, neither of the "SO" plan is standard ,nor is recognized by the competent government, all the enterprises are in their try-out stages. Lacking of law and regulations, the "SO" practices are various , and have many differences with the "SO" plan in western countries. It is much proper to say that the "SO" in China is a uncomely modification of the real "SO".In the purview of private income tax as to "SO", by analyzing the types of the "SO", the causes of the practices and the traits, this thesis is trying to explore and analyze the defects of the aforementioned, discussing whether one should and how to pay the private income tax as to "SO". Some witting suggestions are given for perfecting the tax policy of "SO" in P.R.China.