As provided under Revenue Regulation No. 13-2022, any kind of equity-based compensation, such as stock options, restricted share awards, stock appreciation rights (SARs), and restricted stock units, which may or may not pertain to the shares of stocks of the grantor, is considered taxable compensation subject to the withholding tax on compensation once exercised or availed of by the grantee-employees.
The above tax treatment is applicable regardless of the employment status of the grantee-employees, who could either be rank-and-file or occupying managerial/supervisory position.
The provision of Revenue Memorandum Circular 79-2014 and any regulations, rulings, orders, or circulars, or portions thereof which are inconsistent with the provisions of this Regulation are hereby revoked, repealed, or amended accordingly.
The Regulation shall take effect 15 days following its publication in Manila Times last October 14, 2022.
Please be guided accordingly.
P&A Grant Thornton
Certified Public Accountants
P&A Grant Thornton is the Philippine member firm of Grant Thornton International Ltd.
As published in SunStar Cebu, dated 19 October 2022