Tax Notes: Equity-based compensation paid to rank-and-file, managerial/supervisory employees subject to withholding tax on compensation

Tax Notes: Equity-based compensation paid to rank-and-file, managerial/supervisory employees subject to withholding tax on compensation

As provided under Revenue Regulation 13-2022, any kind of equity-based compensation, such as stock options, restricted share awards, stock appreciation rights (SARs), and restricted stock units, which may or may not pertain to the shares of stocks of the grantor, is considered taxable compensation subject to the withholding tax on compensation once exercised or availed of by the grantee-employees.

The above tax treatment is applicable regardless of the employment status of the grantee-employees, who could either be rank-and-file or occupying managerial/supervisory position.

The provision of Revenue Memorandum Circular 79-2014 and any regulations, rulings, orders, or circulars, or portions thereof which are inconsistent with the provisions of this Regulation are hereby revoked, repealed, or amended accordingly.

The Regulation shall take effect 15 days following its publication in Manila Times last Oct. 14, 2022.

Please be guided accordingly.

Source:

P&A Grant Thornton

Certified Public Accountants

Trending

No stories found.

Just in

No stories found.

Branded Content

No stories found.
SunStar Publishing Inc.
www.sunstar.com.ph