SEC News Service Series of 2014 November 13, 2014

Abstract:

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.

Info
Source InstitutionSecurities and Exchange Commission
Source URLhttp://www.sec.gov.ph/aboutsec/SEC%20News/SEC_News_111314.pdf
Page Count31
Place of PublicationMandaluyong City
Original Publication DateNovember 13, 2014
Tags Newsletter