Practice question
What timing does the amended NIRC32(A)(1) expressly state for including equity-based compensation in gross income?
- Automatically every year before any option is granted.
- At the time of exercise.
- Only when the employee eventually dies.
- Never, because compensation must be paper currency.
- Only when a foreign currency is exchanged for pesos.
Legal references
- NIRC, Sections 5-7,22-23 and32, as enacted in RA8424 and subject to the cited later amendments: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
- RA12214, May29,2025, CMEPA, including amended NIRC Sections22,25 and32: https://lawphil.net/statutes/repacts/ra2025/ra_12214_2025.html
- CIR v. Shinko Electric Industries, G.R.226287, July6,2021, main decision, income concept and requisites: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/67666
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