2018-05-07
Amendment of Statute for Industrial Innovation— Lower Tax for Stock Transactions by Employees.
To assist local enterprises to retain and draw talents, Committee of Finance and Economics of the Legislature Yuan passed the first version of draft for amendment of the Statute for Industrial Innovation. The amendment added a provision allowing employees to opt the lower between "the then market price" and the "actual price" for calculation of tax when conducting transaction of company stocks distributed as bonus. Employees have to stay in the company for at least 2 years to enjoy this benefit.
This is a new incentive apart from the provision that tax payments for stocks distributed as bonus under 5 million can be deferred 5 years. If this new amendment passes in the Legislature Yuan, it will be effective form the date of public announcement till December 31, 2019.
Many legislators focused on whether this would violate the Taxation Equity Principle, allowing people with higher income to pay less tax, and some considered it not attractive enough compared with the measures Mainland China had taken.
Ministry of Economics considers this a flexible mean for enterprises to retain talents and finds it fitting the anticipation of the industries.
Search
English