PwC's monthly newsletter reporting on developments impacting global stock plans.
PwC's recent summary of global developments impacting stock plans.
Several companies with registered equity plans in China received courtesy phone calls from the SAFE office in Beijing reminding them of the timely filing of quarterly reports.
New requirements from the Shanghai Branch of the PRC State Administration relating to dedicated foreign exchange accounts.
Recent developments impacting stock compensation in Belgium, China, New Zealand, Saudi Arabia, United Kingdom and Venezuela.
Shanghai SAFE now requires that companies with SAFE approval from Shanghai SAFE report all quarterly plan activity for all plans registered with Shanghai SAFE on a single quarterly report form. Previously, Shanghai SAFE required that different plans be reported on separate reports.
Companies with approval from Shanghai SAFE are required to annually re-register
their equity plans with Shanghai SAFE.
Many multinational companies have implemented equity plans in People’s Republic of China (“China” or PRC) and learned that it is not always a straightforward task. In addition to designing a suitable equity plan to support human resources and business strategies in China, companies should also consider various registration requirements from local compliance and planning perspectives.
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The PRC State Administration of Taxation ("SAT") recently issued a tax circular, Bulletin  No. 27 ("Bulletin 27"), providing further clarification on the Individual Income Tax ("IIT") treatment of equity-based compensation. The Bulletin is effective from May 1, 2011 and substantially expands the beneficiaries of the preferential tax treatment available under Chinese law.