With development of global economic integration, the development patterns of enterprises in every country refer to each other mutually. As a motivational pattern, employee stock ownership has been used by lots of foreign enterprises in the ways like stock option, performance stock, account value added right, phantom stock and so on. Also, after reform and opening-up policy of China, state-owned enterprise adopted management purchase rights as a way of reform. Stimulating employee by employee stock ownership and linking the interest of employee with overall development of enterprise can improve the subject consciousness and stability of employee, and reduce the tax cost and improve the employee’ profits level under the income tax preference policies on dividend.

HWUASON can offer consultation on individual income tax and relevant issues to help client to know current laws and policies and carry out rational salary plan and distribution program. Meantime, to meet the enterprise’s need, HWUASON can assist client to draw up relevant template and program about employee stock ownership to prevent enterprise from tax risks and minimize the tax burden, which can reach the long-term stimulation goal and stabilize the employee structure.

HWUASON can offer services in this field as follows:

• In accordance with actual operation situation and administration ideal of enterprise, designing appropriate share-holding pattern to meet the given goal which agrees with human resource administration;
• In accordance with the relevant provisions of Chinese law, drawing up stock-holding plan to achieve the maximum tax interest in the scope allowed by laws;
• Negotiating with stock-holding plan parties on behalf of enterprises, and assisting executing the stock-holding plan;
• Dealing with the earlier stage, middle and later stage of tax management of stock-holding plan, and struggling for the tax interest;
• Helping enterprise to complete examining, approving and recording work, as well as other relevant legal work.