Tax treatment of Stock options revisited
Before December 27 2012, the Bureau of Internal Revenue issued inconsistent rulings on the treatment of stocks options granted by employers to their employees. One ruling stated that there is no income derived from the exercise of the option. Another ruling held that the difference between the market price of the share and the exercise price is a benefit subject to fringe-benefit tax, while a more recentruling considered the discount as compensation subject to withholding tax.
|Source Institution||Securities and Exchange Commission|
|Place of Publication||Mandaluyong City|
|Original Publication Date||November 13, 2014|