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Tax on company share payout

  • 02-03-2010 11:16am
    #1
    [-0-]
    Closed Accounts Posts: 3,981 ✭✭✭


    Hi there,

    I work for a company who are giving me a share payout soon. I read the following on revenue.ie:
    Shares (including stock) received by employees, being shares or stock in the employer company or in a company controlling the employer company, are taxable but not within the scope of the PAYE system of deduction at source i.e. the employee must account for the tax due directly to Revenue. All other shares given by employers to employees are within the scope of the PAYE system.

    Does this mean I need to contact the Revenue to find out how much is taxable?


Comments

  • #2
    Mr. Incognito
    Registered Users, Registered Users 2 Posts: 9,798 ✭✭✭Mr. Incognito


    It totally depends on the type of shares, amount of consideration paid, etc.

    The FIRST port of call for adivce is the administrator of the share scheme who should be able to advise you on this.


  • #3
    Shane732
    Registered Users, Registered Users 2 Posts: 5,003 ✭✭✭Shane732


    [-0-] wrote: »

    Does this mean I need to contact the Revenue to find out how much is taxable?

    Ha that's a good one!!

    Seek help! (I mean professional advice!)


  • #4
    Mr. Incognito
    Registered Users, Registered Users 2 Posts: 9,798 ✭✭✭Mr. Incognito


    Watch the tone People come here for honest advice- condecension is frowned upon.

    Fair warning.


  • #5
    wishful thinker
    Closed Accounts Posts: 78 ✭✭wishful thinker


    [-0-] wrote: »
    Hi there,

    I work for a company who are giving me a share payout soon. I read the following on revenue.ie:



    Does this mean I need to contact the Revenue to find out how much is taxable?

    Are they actually giving a payout or is it shares in the company?


    Or is it the shares maturing after being held for a specific time within an approved shares scheme?

    Effectively, the EE receiving the shares has to look after their own tax affairs on this (the onus is not on the ER) - i.e. generally make a tax return & pay tax if it is due on the shares.


  • #6
    [-0-]
    Closed Accounts Posts: 3,981 ✭✭✭[-0-]


    wishful thinker wrote: »
    A
    Or is it the shares maturing after being held for a specific time within an approved shares scheme?


    This is exactly what it is. I've had the shares for a year.


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  • #7
    wishful thinker
    Closed Accounts Posts: 78 ✭✭wishful thinker


    [-0-] wrote: »
    This is exactly what it is. I've had the shares for a year.


    Normally in this case you have to hold these for a specific period. You must obviously work for a multi-national as this is the reason the legislation was brought in.

    If you take the shares/options out before a specific period the tax implications are you get taxed more.

    if you keep within the scheme rules, the tax cost was less

    One would need to contact a tax advisor regarding this - they would need to know dates, # of shares, amounts, price per share......etc, etc....


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