More Reporting Obligations on Equity-Based Compensation Plans in China| Dezan Shira & Associates

Published: 25 Nov 2021

China has tightened the tax administration of income derived from equity-based compensation plans. Companies that implement equity-based compensation plans are now required to submit a reporting form on the status of the equity incentives, as well as other documents, to the tax authorities in charge. If an overseas company grants equity-based incentives to staff in the territory of China, the domestic employer will need to comply with the filing requirements and withhold the individual income tax on income from equity incentives. Click here for full information.

Companies that implement equity-based compensation plans (such as stock appreciation rights, stock options, and restricted stocks) will have to submit the Reporting Form on the Status of Equity-Based Incentives (click it for PDF), as well as some other relevant documents, to the tax authority in charge within the first 15 days of the month following the decision to implement such a plan.

At present, companies may still need to submit the hard copy of the reporting form and materials to the tax authority in charge. However, it will be possible to submit these reporting forms via the Natural Person Tax Information Management System (ITS) in the future.

For more information and assistance on your company’s equity-based compensation plans, you’re welcome to contact us at

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Vivian Mao

Firm: Dezan Shira & Associates
Country: China

Practice Area: Foreign Direct Investments

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