Research On Taxation Rules Of Individual Income Derived From Employee Stock Option

In modern society,state tax not only has the property of fiscal revenue,but it is important tool of adjusting national economic and promoting efficiency.Not only to achieve the purpose of national finance,when a certain field is added to the regulatory scope of specification of the tax law,it should also be conducive to optimize the allocation of resources and improve economic efficiency in this field.Employee stock option,choosing incentive mechanism as the guidance of system,is designed to achieve the connection of interests of employees and enterprise,and motivate employees to fulfill their potential in order to participate in the distribution of enterprise residual income,and improve enterprise efficiency and profit level.Specification of the tax law to regulate employee stock option,shall comply with the mechanism of action of employee stock option,and even promote the realization of its incentive efficiency,but not inhibit or interfere with it.Improving taxation rules of individual income derived from employee stock option,systematically and integrally,is not only beneficial to solve the antagonism and conflict between taxation rules,but also contribute to the implementation and operation of employee stock option.It is one of the important contents of the Outline of the “Twelfth Five-Year Plan” to deepen the reform of the fiscal and taxation systems,and it is also the meaning of the subject to improve the employee stock option income tax rules.At this stage,the current taxation rules for employee stock option have a low level,and is not enough complete.The perfection of taxation rules should stand on the realities of the country,and draw lessons from the beneficial international experience.This thesis is divided into four parts,with the exception of introduction and conclusion.The first part illustrates the basic theory of taxation rules of individual income derived from employee stock option.Firstly,it clarifies the definition of stock option from three perspectives--Management Science,Finance and Science of Tax Law.Secondly,it introduces the legitimacy foundation of levying taxes on individual income derived from employee stock option from three aspects of ability to tax,distributive justice and promoting efficiency.In addition,it discusses two patterns of individual income tax--separation tax and overall tax.In the same time,it states the controversy and response of the tax pattern of individual income derived from employee stock option.The second part analyzes the practice foundation of taxation rules of individual income derived from employee stock option.First of all,it teases the current taxation rules,mainly departmental regulations enacted by financial and taxation departments,and summarizes the detailed taxation rules of listed company at all taxation points.Then,this paper introduces the taxation rules of the United States and other countries and OECD,analyzes international experience of levying taxes on individual income derived from employee stock option.The third part analyzes the flaws of taxation rules of individual income derived from employee stock option,mainly from three levels--income type,taxation point and incentive mechanism.Firstly,for income type,it puts forward reflection,from four aspects--stock options' purpose granted by enterprises,economic essence,taxation equality and legal form of wages and salaries,to wage property of income when employees transfer stock options.Secondly,for taxation point,it explains that it is non-rationality to levy taxes when employees obtain and exercise stock options,from three aspects--obtaining no real incomes,sharpening contradiction between tax collectors and taxpayers.Moreover,for incentive mechanism,from the perspective of the adverse effects of taxation rules to employee stock option,it analyzes that current taxation rules inhibit incentive mechanism of employee stock option.The fourth part puts forward some ideas to improve taxation rules of individual income derived from employee stock option.Aiming at the existing defects,this paper puts forward reasonable suggestions from three aspects.One is to determine accurately the type of levying taxes on individual income when employees transfer stock options.Two is to select discreetly taxation points.Three is to correct effectively inhibition of current taxation rules to incentive mechanism of employee stock option.