Response to the Burden of Withholding Income Tax Related to Trust-Based Stock Options
First written in FY2023-Q3. 2 of 2 entries say "Materialised", first in FY2023-Q3. Latest entry: FY2023.
eXmotion moved to the "Worse" side of this theme in 2023, 1 year before the typical company in this theme (2024).
3 other companies' latest entry also says "Materialised".
- FY2023MaterialisedAnnual report
「The company's third series of stock acquisition rights constitutes trust-type stock options. In response to the National Tax Agency's view, and after discussions with internal and external specialists, the company waived its right of recourse for the tax burden on officers and employees related to the trust-type stock options, as announced in the “Notice Regarding Response to Trust-Type Stock Options and Recognition of Related Expenses” published on 6 October 2023. In the third-quarter results, the company deemed the ¥44.161 million equivalent to the withholding income tax payable recorded for the trust-type stock options, together with additional expenses of ¥61.274 million arising from the subsequent waiver of its right of recourse, to be non-recurring, and recorded the total of ¥105.436 million as a loss related to trust-type stock options under extraordinary losses.」
In addition to ¥44.161 million of withholding income tax related to the third series of stock acquisition rights, the company recorded ¥61.274 million of additional expenses associated with waiving its right of recourse against officers and employees, resulting in extraordinary losses of ¥105.436 million in total. - FY2023-Q3MaterialisedAnnual report
「On 30 May 2023, the National Tax Agency published “Taxation of Stock Options (Q&A)” and expressed the view that trust-type stock options are effectively treated as salary when officers and employees exercise rights granted by the company to acquire shares, requiring the company to withhold tax retroactively even from officers and employees who have already exercised their rights. The company's third series of stock acquisition rights constitutes trust-type stock options. In response to the National Tax Agency's view, and after discussions with internal and external specialists, the company decided to pay the withholding income tax related to the trust-type stock options. In the current third-quarter consolidated accounting period, ¥44.161 million, equivalent to the amount of withholding income tax payable, was recorded in selling, general and administrative expenses in the quarterly consolidated income statement and in current liabilities in the quarterly consolidated balance sheet. As officers and employees will incur an additional burden, the company expects to bear part of it as alternative compensation or through other means. The tax payment is scheduled to be made promptly.」
In response to the National Tax Agency's view, the company decided to pay the withholding income tax related to the third series of stock acquisition rights and recorded ¥44.161 million, equivalent to the amount payable, as an expense and a current liability. It also disclosed that it expects to bear part of the additional burden incurred by officers and employees as alternative compensation or through other means.