Identify the taxable event
Options or shares granted during Singapore employment can produce taxable employment gains. Options generally trigger on exercise; other awards depend on accrual or vesting. A selling restriction can defer the gain until the moratorium ends. The usual calculation compares open-market value at the relevant event with the employee’s payment. The grant, service location, vesting terms and restriction dates are therefore essential; selling the shares is not always the tax trigger.
Departure, tracking and deferral
The deemed-exercise rule can apply to foreigners ceasing employment and permanent residents leaving Singapore permanently. An approved tracking option changes the treatment but requires eligibility, continued reporting and other compliance conditions. QEEBR is a qualifying tax-deferral arrangement, not a general exemption. The guide’s annexes illustrate ordinary, restricted and deemed gains and later reassessment. Employers should distinguish a departure valuation from eventual exercise or vesting instead of reporting the same benefit twice.
Official source
A concise, independent Apex Gateway guide based on the official English source, not a reproduction of the complete document. Consult the original for full conditions, exceptions and subsequent updates.
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