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 Institution	Securities and Exchange Commission
Source URL	http://www.sec.gov.ph/aboutsec/SEC%20News/SEC_News_111314.pdf
Page Count	31
Place of Publication	Mandaluyong City
Original Publication Date	November 13, 2014
Tags	Newsletter