Abstract: On September 2016, the Ministry of Finance and the State Administration of Taxation jointly issued the Notice on Improving the Income Tax Policy of Stock Option Incentive and the Technology-stock based Participation (Cai Shui [2016] No.101). Those reasonable adjustments made by this new policy are based on the current situation and demand of attracting innovative and entrepreneurial talents by the stock incentive. Referring to international experience, the new policy is the support for the human capital input of the innovation and entrepreneurship, which is conducive to the innovation-driven development. However, there are problems in its implementation and the paper puts forward relevant suggestions for improvement.