Creating Appendix 8B Data

This topic provides an overview of Appendix 8B data, and discusses how to enter Appendix 8B details.

Page Name

Definition Name

Usage

Appendix 8B Forms SGP Page

GPSG_APP_8B

Enter details of an employee's derived gains or profits either directly or indirectly from the exercise, assignment, or release of any share option right or benefit where such right or benefit is obtained by reason of any office or employment.

The Appendix 8B form provides details of gains and profits from stock options that are exercised for the year and is generated by the employer for the employee. You must complete the Appendix 8B when the employee has derived gains or profits either directly or indirectly from the exercise, assignment, or release of any share option right or benefit where such right or benefit is obtained by reason of any office or employment. Such gains or profits form part of the remuneration that is paid to the employee, and must be declared on the IR8A Form. The employer should reflect the amount in Section D of Appendix 8B and under item (d)(8) of the Income Section in the Form IR8A.

Employee Stock Options

In Singapore, gains from employee stock options are assessed to tax as income of the year in which the options are exercised. Generally, gains from stock options are regarded as derived from Singapore if the option is exercised while the individual is physically present in Singapore or employed in Singapore. Therefore, individuals who are granted stock options while they are employed outside Singapore are taxed in Singapore on any gains that are derived from the stock options if they exercise them while they are in Singapore or they hold employment in Singapore.

The amount of Employee Stock Option Scheme (ESOP) gains is the difference between the open market value of shares at the time that the options are exercised and the exercise price. Unless the employee has arranged to pay tax in installments, the tax, including tax on stock option gains, becomes due within one month after it is assessed. To help alleviate cashflow problems that are faced by some employees who do not sell their shares after exercising the option, several stock option schemes have been introduced.

Use the Appendix 8B Forms SGP page (GPSG_APP_8B) to enter details of an employee's derived gains or profits either directly or indirectly from the exercise, assignment, or release of any share option right or benefit where such right or benefit is obtained by reason of any office or employment.

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Global Payroll & Absence Mgmt > Year-End-Processing > Appendix 8B Forms SGP > Appendix 8B

This example illustrates the fields and controls on the Appendix 8B Forms SGP page.

 Appendix 8B Forms SGP page

Employee Stock Option Details

These fields enable you to enter any amounts that qualify or don't qualify for income tax exemption under the Company Employee Equity-Based Remuneration (CEEBR) scheme, Employee Equity-Based Remuneration (EEBR) scheme or the Entrepreneurial Employee Equity-Based Remuneration (EEEBR) scheme. Select the name of each tax exemption scheme that qualifies for income tax exemption and enter the exemption amounts.

Field or Control

Description

Scheme Type

Select from the following IRAS tax exemption scheme types: CEEBR, EEBR, and EEEBR.

RCB Number (registrar of companies and businesses number) and Name of Company

Enter the RCB number that is issued if the organization is a partnership or a limited company and your company name. Complete these fields only if the name of the employer granting the stock option is not the same as the company that is making the declaration.

Date Granted and Date of Exercise

The dates that the stock option is granted to the employee and the employee exercises the option.

Exercise Price

The price at which the employee exercises the stock.

Market Value when Granted

The market value at the time that the stock option is granted to the employee.

Market Value when Exercised andShares Acquired

The market value at the time that the employee exercises the stock option and the number of shares.

Gross Tax Exempt Gain and Gross Gain Not Tax Exempt

Enter the total amount (gross tax exempt gain) that qualifies for each tax exemption scheme. The exemption amount for the EESOP and CSOP schemes is calculated as follows:

[(Market value at the time that the stock options are exercised) − (Market value at the time that the options are granted)] × (Number of shares acquired)

The amount that does not qualify for the EESOP and CSOP tax exemption schemes (gross gain not tax exempt) is calculated as follows:

[(Market value at the time that the stock options are granted) − (Exercise price of the stock option)] × (Number of shares acquired)

The amount that does not qualify for the ESOP tax exemption scheme (gross gain not tax exempt) is calculated as follows:

[(Market value at the time that the stock options are exercised) − (Exercise price of the stock option)] × (Number of shares acquired)

Gross Gain On Stock Options

This is the gross amount of the stock option gains. This amount is calculated as follows:

[(Market value at the time that the stock options are exercised) − (exercise Price of the stock option)] × (Number of shares acquired)