Taxation on ESOP (Southeast Asia Edition)
- The tables are categorised into 2 sections: For employers and for employees.
- Withholding and reporting taxes, and tax deduction are under the “For Employers” section. Being taxed upon exercise or on the sales of exercise, or both are covered in the “For Employees” section.
Withholding tax: The employer takes a set amount of money out of an employee's salary and pays it to the government. The money taken is a credit against the employee's annual income tax.
Tax return (Reporting Tax): It is a form filed with a tax authority that reports income, expenses, and other relevant tax information. Tax returns allow taxpayers to calculate their tax liability, schedule tax payments, or request refunds for the overpayment of taxes.
Tax Deduction: It is a deduction that lowers a person's or an organisation's tax liability by lowering their taxable income. They are usually expenses that the taxpayer incurs during the year that can be subtracted from their gross income to figure out how much tax payable.
You should consult a tax advisor for the most updated and more comprehensive information on taxation on ESOP in Southeast Asia.
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