On or about 25 Feb 2022, the Inland Revenue Authority of Singapore (IRAS) has published the third edition of the e-Tax Guide on Tax treatment of employee stock options (ESOP) and other forms of Employee share ownership (ESOW) plans. It replaces the second edition published on 24 Jun 2013.
This e-Tax Guide provides details on the tax treatment of the gains and profits derived from employee share options (“ESOP”) and other forms of Employee Share Ownership (“ESOW”) plans as well as the relevant administrative requirements. It consolidates the six e-Tax Guides previously issued on ESOP and ESOW.
It also covers details of Qualified Employee Equity-based Remuneration Scheme (“QEEBR Scheme”), the “deemed exercise” rules and tracking options applicable to gains from ESOP and ESOW plans.
In this third edition, it replaced Income Tax Act (Cap. 134) in Annex G with Income Tax Act 1947.