On January 16 2023, it was announced in the Notice of Ministry of Finance and State Taxation Administration on Issues relating to the Levy of Individual Income Tax on Personal Income from Stock Options (Cai Shui (2005) 35) (“Circular 35”), that the current preferential tax treatment for equity incentive income has been extended to 31 December 2023.

Therefore, companies who filed Cir.35 have the privileges for their post-IPO plan that equity incentive income will continue to be calculated individually from salary income as taxable income.

You can read the full announcement here: http://www.chinatax.gov.cn/eng/home.html.

If you would like more information please contact us via hkplanmanagers@computershare.com.au.