The State Administration of Foreign Exchange issued the Notice Regarding Administration of Domestic Individuals Participating in Employee Equity Incentive Plans of Offshore Listed Companies, Hui Fa  No. 7, with effect from February 15th. This Notice requires domestic employers to record equity incentive plans that they offer to domestic individuals with the competent foreign exchange bureau.
Changes from the earlier notice it replaces include: 1) “domestic employers” now expressly include foreign companies’ representative offices in China, 2) the term “equity incentive plans” is expressly expanded to cover all kinds of equity incentive plans, and is not limited to stock and stock option plans, and 3) “domestic individuals” now include foreign nationals and Hong Kong, Macau and Taiwan residents. This notice also requires employers to include such residents in the foreign exchange filing. Formerly, only local employees receiving incentives were expressly required to be included.