Notice About Imposing Individual Income Tax On The Income From Stock Option

The above notice stipulated that the income from Enterprise stock option exercised by employee should be charged individual income tax (" IIT ").

When the staff buys shares from enterprise with a price lower than that of the stock market closing price, the price difference should be treated as income from wages or salaries and taxable.

When the staff sells the shares which are domestic listed company shares. The profit will not taxable temporality. Otherwise, the profit from the overseas listed company should be taxable according to the calculation of " income from property transfer".

Whenever the staff receive dividend from the enterprise, he should pay the IIT according to the calculation of "income from interest, dividend and bonus". Apart from those specified to be tax exemption or reduction, all amount received should be taxable under IIT.

This notice will be taken into effect from 01 July 2005.

通知明確規定實施股票期權計劃企業授予該企業員工的股票期權所得，應按有關法規徵收個人所得稅。

員工在購買股票時，其從企業取得股票的實際購買價低於購買日股票收盤價的差額，應當按"工資、薪金所得"計算並繳納個人所得稅。

員工將購買的股票轉讓時獲得的高於購買日收盤價的差額，如果是購買的境內上市公司股票轉讓而取得的所得暫不徵收個人所得稅；如果是轉讓境外上市公司的股票而取得的所得，則應按照"財?轉讓所得"計算並繳納稅款。

員工因擁有股權而參與企業稅後利潤分配取得的所得，應按照"利息、股息、紅利所得"計算並繳納個人所得稅。除依照有關規定可以免稅或減稅的外，應全額按規定稅率計算納稅。

該通知自2005年7月1日起執行。