Intel 2002 Annual Report Download - page 85

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Please find page 85 of the 2002 Intel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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Leaving Employment
You will have no tax liability in respect of those Options which are forfeited on termination of employment. Further, any tax which you elected
to pay on the grant of forfeited options may be refunded.
However, if you are still able to exercise the Options following termination and you had not elected to be taxed on the grant of the Options, you
will be subject to tax in the year in which your employment terminates on the deemed “market value”
of the Options at the date of termination of
employment. You will then suffer no more tax in relation to the Options or the Stock acquired on exercise until the Stock is sold (as described
above), or dividends or bonus Stock is received.
If, however, the Options are exercised and the Stock is sold within thirty (30) days of termination of your employment, you will simply be taxed
on the sale price less the Option (exercise) price, and will suffer no further tax in relation to the sale of the Stock under the capital gains tax
regime.
Dividends
Generally, you will be subject to tax on dividends received in Australia. The taxable sum will include the amount of US dividend withholding
tax, deducted in the US before remission to you.
An Australian tax credit will be available for the US dividend withholding tax. The credit will be limited to the lesser of the amount of US
withholding tax and the Australian tax applicable to the relevant amount.
The Australian and Foreign Investment Regime
The Australian foreign Investment Fund (FIF) regime operates to tax Australian residents holding interests in certain foreign companies on the
increase of value of that interest each year, whether or not realized.
The Common Stock of Intel Corporation is presently listed on NASDAQ and the FIF regime will not apply to your Intel Corporation holding.
Intel Corporation will advise you if this position changes.
Withholding and Reporting
Intel Corporation has no obligation to report the grant or exercise of your Options or stock to the Australian tax authorities or to withhold the
proceeds of any exercise. Accordingly, you will be solely responsible for reporting your gains to the Australian Taxation Office and paying any
required taxes.
12.