Study On The Individual Income Tax System Arrangement Of Company Equity Incentives

In recent years,equity incentives have been widely used by Chinese companies.However,the personal income tax system for equity incentives in Chinese companies is far from satisfactory.The status quo of personal income tax incentives for corporate equity incentives in China,what problems exist,and how it will be improved,are worthy of attention and research,and have dual values of academic discussion and guiding practice.Therefore,the author will take the theoretical basis of the equity incentive individual income tax system as the basis,and implement the basic theory in the following discussion.From the macro and micro perspectives,the author will demonstrate the development context and current regulations of China's equity incentive personal income tax system,aiming at the current situation in China.There are common problems in the system of personal income tax incentives for equity-based incentives,and corresponding solutions are proposed.Therefore,this article is divided into the following five parts:The first part studies the theoretical basis of the personal income tax system for equity incentives in Chinese companies.Among them,principal-agent theory,human capital theory,two-factor incentive theory and corporate social responsibility theory together constitute the theoretical foundation of equity incentive.The principle of tax legal principle and the principle of quantitative energy taxation are the theoretical basis of taxation law related to equity incentive.There are some contradictions between the above two theories,such as the contradiction between the theory of human capital and the principle of taxation of quantity and energy,the contradiction between the principle of two-factor incentive and the principle of legal legalization of taxation,the contradiction between the theory of corporate social responsibility and the principle of taxation of quantity and energy,etc.These contradictions are exactly the necessity of the author's research on the theoretical basis of China's corporate equity incentive personal income tax system,involving the purpose of the personal income tax system arrangement of equity incentives,the determination of tax base and the determination of preferential tax policies.The second part reviews the personal income tax system of China's equity incentive from a macro perspective.Since the date of the State Administration of Taxation [1998] No.9 document,China's current regulations concerning the individual income tax system for equity incentives have reached as many as 22,of which the vast majority are normative documents issued by the State Administration of Taxation.Looking through these normative documents,we can see that the personal income tax system of China's equity incentives has gradually shifted from a listed company to a listed company and an unlisted company.The equity incentive model involved has been continuously increasing and the regulations have been continuously refined.At the same time,the second part also discusses the current regulations of the personal income tax system for equity incentives of listed companies and non-listed companies in China in the order of the grant phase,acquisition phase,holding phase,and transfer phase.In the third part,three kinds of stock options,restricted stocks and stock appreciation rights are selected,which are the most widely used equity incentive models.From the micro perspective,the choice of China's current stock incentive model and the application of individual income tax system are analyzed.Through the analysis of the constitutional elements of the taxation obligations of stock options,restricted stocks,and stock appreciation rights,the taxation obligations,taxable income,tax rates,and withholding agents and other personal income taxation systems.There are common problems in the current personal income tax system for company equity incentives in China.The fourth part enumerates and analyzes the common problems existing in the personal income tax system of China's corporate stock incentives,and further reveals the common problems through statistics of existing judgments.At present,the personal income tax system of stock incentives has a low level of regulation and is fragmented,and the system lacks comprehensiveness and pertinence.Under the same model,the existing stock incentive system is different between the same model of listed companies and non-listed companies.The listed company's deferred taxation policy is limited by the limited conditions of equity incentives.At the same time,the current fee deduction system for the personal income tax system of equity incentives is less scientific and lacks preferential taxation systems.In the fifth part,aiming at the common problems existing in the personal income tax system of Chinese company's equity incentives,we use foreign experience for reference and propose specific solutions.The author proposes to increase the level of individual income tax incentives for equity incentives and achieve standardization and harmonization.In the near future,the relevant content of individual income tax incentives for personal equity incentives will be included in the Personal Income Tax Law of the People's Republic of China.In the long run,personal income tax incentives will be based on equity incentives.System alone legislation.At the same time,the author proposes to enhance the comprehensiveness and pertinence of the personal income tax system for equity incentives in Chinese companies,increase the types of equity incentive models involved in regulatory documents,and involve the general system of transitional stages.Eliminating the difference in the current model of equity incentive personal income tax under the same model,deferring the actual tax payment time to the point of transfer,identifying the tax base as income from property transfer instead of salary income,and exempting non-listed companies from transferring equity incentives.Individual income tax on stocks and interests.In addition,the author proposes to scientifically design the cost deduction system and tax preference system in the personal income tax system for equity incentives in Chinese companies.