[Transitional measures will be applied until December 2024] Plutus Consulting starts providing consultation service regarding review of existing stock options
*Plutus Consulting Co., Ltd.*
Press release: August 20, 2024
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[Transitional measures will be applied until December 2024] Plutus Consulting starts providing consultation service regarding review of existing stock options
* – In connection with the revision of requirements for tax-qualified stock options – Proposing a review of stock options in line with a company’s growth stage and capital policy *
Plutus Consulting Co., Ltd. (Head office: Chiyoda-ku, Tokyo, Representative Director and President: Noguchi)
Masato, hereinafter referred to as “our company”. ) will begin providing a consultation service (hereinafter referred to as the “Service”) for reviewing stock options issued in the past.
* 1. History of provision of this service *
Regarding stock options, the revision of the special taxation measures law related notification in July last year established new regulations regarding the method of calculating the “value per share at the time of conclusion of the contract related to stock acquisition rights” related to the exercise price requirement. However, due to the amendments to the Income Tax Act, etc. due to the tax reform in 2020, various amendments have been made, such as easing the requirements for custody of shares issued upon exercise of rights and raising the upper limit of the annual exercise price. I’m here.
These revisions may have a major impact on the system design and operation of incentive plans for startup companies, and the number of requests to learn about the background and content of the system revisions is increasing.
In light of this situation, it is important for our company to provide appropriate information to startup companies and provide opportunities for consultation regarding the impact of system revisions and solutions to the issues that each company is currently facing, which will help the development of Japan’s startup industry as a whole. We decided to start providing this service because we judged that it would lead to stronger competitiveness.
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* 2. Transitional measures in line with the tax reform in 2020* The relaxation of tax eligibility requirements due to the 2020 tax reform will be effective for contracts made after April 1, 2020, and will apply to contracts issued in the past (contracts before March 31, Reiwa 6). Previous tax eligibility requirements apply to stock options.
However, transitional measures have been established regarding the scope of application of the annual exercise amount and the relaxation of stock custody requirements.*
For tax-qualified stock options contracted before March 31, Reiwa 6, the relaxation of the annual exercise amount and stock custody requirements can be applied by amending the contract by the end of December 2020. Possible*
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In this service, we will provide a free diagnosis to determine whether the stock options issued in the past by the company you consult with are subject to transitional measures, and we plan to provide proposals regarding specific response policies and methods. is.
* 3. Support restructuring of other incentive systems*
Since our company was founded, we have been involved in the design of incentive plans for many companies. In this service, in addition to checking whether transitional measures due to tax reform are applicable, we will also check the growth stage and outline of the capital policy of the company that consulted with us, and we will also confirm measures to resolve current issues. We will also make suggestions.
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* [About Plutus Consulting Co., Ltd.] *
Our company is a comprehensive capital policy consulting firm. M&A/organizational restructuring, design of incentive plans using stock options and stock acquisition rights, equity financing, consulting for start-up companies, consulting on business succession, accounting advisory, advice/consulting on disputes/courts, and other research/research. We are doing this.
U R L: https://www.plutuscon.jp
Location: 35th floor, Kasumigaseki Building, 3-2-5 Kasumigaseki, Chiyoda-ku, Tokyo
Representative: Masato Noguchi, President and Representative Director Business details: Diagnosis and assessment of stocks, stock
acquisition rights, corporate bonds, etc. of listed and unlisted companies
■Financial investigation (due diligence)
■ Consulting regarding capital policy