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.
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
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.
Share Options
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
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.
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