Select Page

Company Shares Tax Returns

  • You must pay taxes if your employer offers an employee share plan. You can get assistance from TAS Accountants to fulfil your tax obligations.
Are you a participant in an employee share incentive plan where your employer has granted you shares?

You will typically have to pay tax twice if your employer grants you shares or share options:

  • Capital Gains Tax (CGT) when you sell the shares.
  • Income Tax when you receive the shares.

Many persons will have to file a tax return with the Revenue Commissioners for the first time as a result of receiving shares. Sometimes workers believe their employer or broker has taken care of paying all of their taxes and submitting the required returns, but this is not always the case. You are responsible for calculating the tax and submitting the required tax returns.

Your employer must annually submit a return to the Revenue Commissioners regarding their share plans, so your information is in the system and any unpaid taxes will be pursued.

Your nearby TAS Accountant can prepare your tax returns, regardless of your situation regarding shares and share options. We’ll make sure you receive any relief you’re entitled to. We can ease your concern about tax returns by offering you a fixed, competitive price.



    Share Award Schemes and Share Option Schemes

    Share Award Scheme

    Share awards occur when your employer provides you with company stock as part of a bonus or pay package.

    The good news for employees is that, while you will still have to pay income tax when you receive the shares, your company will have taken care of this for you via your payslip, so one step has already been completed.

    When you decide to sell your shares, you must pay capital gains tax, which is a separate tax that is not handled by your employer. The first €1,270 of a gain in a tax year is exempt from CGT in Ireland, where this is now taxed at 33% of the gain. You must pay the CGT and timely file the relevant tax returns, or you can hire a professional to do it for you.

    In order to pay taxes on the difference between the value of the shares when you received them and the value of the shares when you sold them, you must first calculate your gain.

    Set up company in ireland

    Share Options

    Employees are given share options as a perk. With a share option, an employee is able to buy company stock at a predetermined price that is frequently less than its current market value.

    Regarding share options, there are two tax events that you should be aware of:

     

    • Income tax, USC, and PRSI are due when purchasing shares.
    • When you sell the shares, you must pay capital gains tax.

    We Can Help

    TAS can prepare your tax returns, regardless of your situation regarding shares and share options. We’ll make sure you receive any relief you’re entitled to. We can ease your concern about tax returns by offering you a fixed, competitive price.

    To schedule a free initial consultation, call us at +353 1 44 28230 or send us a message here if you would like our assistance with your share tax returns.

    Other Services

     

    We offer a range of services to Startups & Businesses in Ireland.
    R
    Year-End Accounts
    R
    Company Registration
    R
    Accounting Solutions
    R
    Capital Gains Tax
    R
    Payroll
    R
    Tax Returns
    R
    Business Advisory
    R
    Inheritance Tax
    R
    Other Services

    Happy Clients

    Years of Experience

    Affiliations

    Recent Blogs

    How to avoid penalties on your corporation tax

    How to avoid penalties on your corporation tax

    Scope of Corporation Tax Corporation tax is levied on profits earned by limited companies that includes trading profits, Disposal or sale of assets, and investments.Non Resident companies or Branches of Foreign companies operating in Ireland are also...

    Avoid these Top 5 Bookkeeping Mistakes

    Avoid these Top 5 Bookkeeping Mistakes

    For SMEs, accurate bookkeeping is crucial. Here are the greatest accounting blunders to avoid. Correct bookkeeping is crucial. You may get current management information on the performance of your organisation via good bookkeeping. One of a small...

    Tips for Landlords on Taxes

    Tips for Landlords on Taxes

    Taxes are a complex subject, and they can become even more confusing when you factor in real estate. However, we hope to make it simpler for you with our Top Tax Tips for New Landlords. Declare Your Income Tax and Register! You must declare any rental...

    Is it necessary for me to file a tax return?

    Is it necessary for me to file a tax return?

    Recently, I've heard people discussing the tax return filing deadline, so I was wondering if I needed to file one myself. Everyone in Ireland who earns money is required to pay taxes. Because of how our tax system is set up, if you work as an employee,...

    How Much Do Accountants Charge for Small Business

    How Much Do Accountants Charge for Small Business

    Every business should strive to keep overhead costs to a minimum, but SMEs in particular should do so because their budgets are typically smaller. An internal accounting team or corporate accountants can be a very expensive overhead for a small...

    Small Business Cash Flow Management Tips

    Small Business Cash Flow Management Tips

    Here are some suggestions to help you manage your cash flow, especially if you're having financial difficulties. How important is cash flow management in the business world? Cash flow is a powerful financial indicator that can reveal a lot. Being in good...

    Need Business Plan Services?

    Need Business Plan Services? We also assist in the Business Plan Wtriting Services with our expert team.