Research On Individual Income Tax Policy Of Stock Options In China's Listed Companies

Stock options were first born in the 1970 s as a new type of long-term incentive for Western developed countries,and are widely used in modern enterprise management.Stock option is a kind of option.It is the right of the employer enterprise to allow its employees to purchase a certain number of shares of the company at a certain agreed price at a certain time or period in the future according to the conditions and procedures agreed upon in advance.The stock option incentive system has significant advantages over the traditional “basic salary + year-end award” salary model,which makes up for the shortcomings of insufficient incentives and short time limits,which helps to retain the core talents of the company and create greater value for the company.On the other hand,the stock option system is widely used in modern enterprise management,which “bundles” the interests of business owners and operators,constrains the hedonism and short-sighted behavior of operators pursuing their own interests,and provides new solutions to the principal-agent relationship.Ideas.Stock options were introduced to China in the 1990 s.In 2005,China Securities Regulatory Commission issued the "Measures for the Administration of Equity Incentives for Listed Companies"(for trial implementation),marking the official start of equity incentives in China.Subsequently,the Ministry of Finance,the State Administration of Taxation and other departments promulgated relevant taxation provisions,clearly stipulating the issue of the collection of personal income tax in the implementation of stock options in listed companies in China.The stock option system has developed rapidly in China.According to the report released by Deloitte,from 2006 to 2017,a total of 1,143 listed companies in the A-share market launched an equity incentive plan with a penetration rate of one-third of all listed companies.Option incentives account for 23%.With the continuous advancement of the stock option system,the relevant personal income tax policy has lagged behind the development of the times,and there is a gap between the stock option and the stock option.Because the current personal income tax policy lacks the scientific classification of stock options,the unreasonable determination of taxation links,tax incentives,and imperfect management systems,the role of taxation in influencing economic regulation cannot be exerted.Therefore,in this context,it is necessary to study the personal income tax policy of stock options of listed companies.This paper uses the empirical analysis method,through the case and combined with international experience to analyze the status quo,problems and improvement measures of the individual income tax policy of stock options of listed companies in China.This paper is divided into six parts.The introduction introduces the research background,significance,ideas and methods of this paper.It summarizes the literature and research in the field of individual income tax policy of stock options of listed companies.The first chapter is the theoretical basis of this paper.The chapter defines the concept of stock options,and then analyzes the operating mechanism of stock options from the aspects of constituent elements,implementation process and theoretical basis,and discusses the theoretical basis of individual income tax for stock options.The second chapter is the analysis of current situation and problems.Based on the analysis of the individual income tax policy documents of stock options in China's listed companies,and on the tax treatment and the collection and management policies,the problems of the existing policies are preliminarily summarized.The third chapter combines the case of a listed company in China to review its stock options.The whole process of the implementation of the plan examines the incentive effect from the perspective of personal income tax,and provides practical evidence for the problems existing in the individual income tax policy of stock options in China's current listed companies.The fourth chapter is the experience of extraterritorial experience,by comparing the United States,the United Kingdom,and France.Developed countries The stock option personal income tax policy,from which it is inferred to the future reform of China;the fifth chapter is to improve the listed company's stock option personal income tax policy recommendations,the content of the first four chapters,from tax legislation,tax treatment to tax collection and management three The aspect provides suggestions for the optimization and improvement of the individual income tax policy of stock options of listed companies in China.