For company executives, their income is very high, many companies pay high monthly salaries to senior personnel, to the end of the year also have a high year-end bonus, in this case, tax planning techniques is to company executives of the year's income is divided into two parts: the monthly salary and the year-end bonus, the accurate division of the monthly salary and the year-end bonus The ratio between the monthly salary and the year-end bonus should be accurately divided. Either cut a portion of the monthly salary and add it to the year-end bonus, or cut a portion of the year-end bonus and spread it over each month's salary. These two types of "peaks and valleys" should be weighed against the amount of salary and year-end bonuses given to the executives.
(B) the company's executives equity incentives tax planning
Equity incentives can be divided into two forms of stock option incentives and stock incentives. According to the differences in tax policy and the need for tax planning, according to different settlement methods, equity incentives can be divided into two forms of equity settlement and cash settlement. Settlement in equity means that the company's equity incentive program is ultimately settled in shares or other equity instruments as consideration, and the most commonly used instruments are: stock options, restricted shares, performance shares, etc. Settlement in cash means that the company's incentive program is ultimately settled in cash or other assets calculated on the basis of shares or other equity instruments, and the most commonly used instruments are: stock appreciation right, virtual shares, performance units, etc.