; 1. Generally, the cost of equity incentive for employees is the share dividend agreed in the equity incentive agreement, which means that the company determines the total distributable profit in accordance with the Company Law of People's Republic of China (PRC) and the Articles of Association, and distributes the dividend in proportion to the shares held.
2. Dividends received by employees need to pay personal taxes, and personal income tax is calculated at the rate of 20%. The company needs to withhold and pay taxes when issuing equity incentive dividends.
According to the law, Article 3 of the Individual Income Tax Law of People's Republic of China (PRC) stipulates that the individual income tax rate: interest, dividends, bonus income, income from property lease, income from property transfer and accidental income shall be subject to the proportional tax rate, and the tax rate is 20%.