Employee Share Schemes - Section 14
Wednesday, April 3, 2013
“Employee Share Scheme” means any agreement or arrangement under which a company may issue shares in the company to –
(a) an employee of the company or an employee of an associated company; or
(b) the trustee of a trust and under the trust deed the trustee may transfer the shares to an employee of the company or an employee of an associated company.
Right or Option to Acquire Shares
The value of a right or option to acquire shares under an employee share scheme granted to an employee shall not be chargeable to tax.
Where, in a tax year, an employee disposes of a right or option to acquire shares under an employee share scheme, the amount chargeable to tax to the employee under the head “Salary” for that year shall include the amount of any gain made on the disposal computed in accordance with the following formula, namely:–
A-B
where –
A is the consideration received for the disposal of the right or option; and
B is the employee’s cost in respect of the right or option.
Issue of Shares:
Where, in a tax year, an employee is issued with shares under an employee share scheme including as a result of the exercise of an option or right to acquire the shares, the amount chargeable to tax to the employee under the head “Salary” for that year shall include the fair market value of the shares determined at the date of issue, as reduced by any consideration given by the employee for the shares including any amount given as consideration for the grant of a right or option to acquire the shares.
Where shares issued to an employee under an employee share scheme are subject to a restriction on the transfer of the shares –
(a) no amount shall be chargeable to tax to the employee under the head “Salary” until the earlier of –
(i) the time the employee has a free right to transfer the shares; or
(ii) the time the employee disposes of the shares; and
(b) the amount chargeable to tax to the employee shall be the fair market value of the shares at the time the employee has a free right to transfer the shares or disposes of the shares, as the case may be, as reduced by any consideration given by the employee for the shares including any amount given as consideration for the grant of a right or option to acquire the shares.
The cost of the shares to the employee shall be the sum of –
(a) the consideration given by the employee for the shares;
(b) the consideration given by the employee for the grant of any right or option. and
(c) the amount chargeable to tax under the head “Salary”.
Labels: Employee Share Scheme, Income Tax, Income Tax Ordinance, Section 14
posted @ 10:05 AM,
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Tax Workshp in Lahore
Friday, March 19, 2010
The Pakistan Tax Bar Association (PTBA) Academy of Taxation & Lahore Tax Bar Association is going to arrange 2 days workshop in Lahore over some topics of Income Tax Ordinance, 2001 as per following schedule;
Wednesday, 24th March, 2010
09.00 to 10:00 - Inaugural session
10:00 to 11.30 - Construction of The Ordinance & The Key Concepts - By DR. Ikram-ul-Haq
- Geographical source (Scope of taxable income)
- Classification of Income
- Anti avoidance
- Arm’s Length Principle
- Taxation Regimes
- Income splitting
- Thin capitalization
- Speculation business
- Deductions – General principles
- Deductions – Special provisions
- Set off and carry forward of business losses
- Group Taxation and Group Relief
14.45 to16:15 - By Mr. Kamal Hussain siddiqui
- Income from property and deductions
- Tax Accounting
- Income from other sources and deductions
- Capital gains and deductions
- Set off and carry forward of Capital losses
16.30 to 18.30 - By Mr. Siraj-ud-Din Khalid�
- Returns
- Assessments
- Audit of Tax Affairs
- Amendment of Assessment
10.00 to 11.30 - Tax compliance� - By Mian Muhammad Ashiq
- Advance Tax
- Withholding Tax
- Filing of Statements
- Additional Tax
- Tax credits
- Collection & Recovery of Tax
- Refunds
Appeals, Reference Revisions and Alternative Dispute Resolution - By Mr. Arshad Siraj Memon
13:00 to 13:15
13.15 to 14.15 - Salary Taxation� - By Mr. Ali A. Rahim
- Income from Salary
- Exemptions
- Employees share schemes
- Retirement benefit funds – 6th Schedule
- Assets
- Common Rules
- Disposal of business
- Provisions Governing Persons
- Permanent Establishment
- Double Taxation Relief
- Applicability of Double Taxation Treaties
- Special Treatment for Dividends
- Fee for Technical Services
- Royalty & Capital Gains etc.
Rana Munir Hussain, Senior Vice President
206, Business Arcade , Block 6, PECHS,
Shahrah-e-Faisal, Karachi-Pakistan
Telephone: 92 21 4315163-5
Labels: Income Tax Ordinance
posted @ 3:36 PM,
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