China Notice on Deferred Taxation of Stock Incentives and Technology Contributions for Shares

On 20 September 2016, China's State Administration of Taxation published Notice 101/2016 on improving stock incentives schemes and tax policies related to technology contributions for shares. The main aspects of the notice include:

• Individual income tax (20% for property transfer) on stock options, bonus shares, etc. granted by an unlisted company as part of a stock incentives scheme may be deferred until the time of disposal, provided that the scheme has been registered with the tax author…