Wage Taxation and Withholding Tax Treatment for Trust-Type Stock Options
First written in FY2024-Q1. 1 of 3 entries say "Advanced", first in FY2024-Q2. Latest entry: FY2025.
2 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「When share acquisition rights lapse, the corresponding amount is recognized as profit in the accounting period in which the lapse is confirmed.」
The Company reconfirmed the continuation of its existing accounting treatment for paid share acquisition rights subject to vesting conditions. - FY2024-Q2AdvancedAnnual report
「The exercise period for the 4th Series of Share Acquisition Rights had commenced, and because the Company is required to withhold tax from those who exercised the rights, it paid the withholding income tax during the second quarter of the current consolidated accounting period. The exercise period for the 6th Series had not commenced, and the rights lapsed pursuant to a resolution of the Board of Directors meeting held on 13 July 2023.」
The Company proceeded with measures concerning the trust-type stock options and paid the withholding income tax relating to the 4th Series of Share Acquisition Rights. The 6th Series of Share Acquisition Rights also lapsed. - FY2024-Q1First statedAnnual report
「At the "Stock Option Tax-System Briefing for Startup Managers and Supporters" held on 29 May 2023, the National Tax Agency announced its view on the tax treatment of trust-based stock options, stating that "the economic benefit at the time of exercise is taxed as salary income."」
The 4th and 6th Series of Share Acquisition Rights were treated as trust-type stock options. Because the Company is required to withhold tax from the holders exercising the 4th Series, the relevant impact was recognized in the quarterly consolidated financial statements. The Company stated that the tax would be paid promptly in due course.