Company Shares & Tax

pafro

Hi all

My Company gives to the most employees a few shares.
Until last year those shares where managed by the UBS Bank in the US.
Since this year a new company, called ETrader has taken over the management part of the shares.

I can vest the shares once a year.
Example:
I have got 500 Shares and can vest 100 each year for the next 5 years.
I have already sold 100 last year in Summer and reported them to the Revenue office. I have got the money for the whole lot onto my bank account.

Now, with this new company ETrader, I have found out, that the shares are taxed on the day the shares are vested.
Meaning, if the next 100 shares vest on the 1st of May, I only get 42 shares available to sell.
52 (52%) are already reduced for tax.

My Companies Headquarter is in the US and I am employed here in Ireland.

I have talked to other employees in the UK, US and other EU countries.
They still get the 100% when they vest!
Why does Ireland have this new "thing" now?

I actually get taxed on the amount the share are worth when they vest.
If the shares now drop and never reach that level, I have been taxed too high, and have to wait until the end of the year to claim the money back.

I am sort of pi**ed and confused

pafro

Nobody an Idea?

alanceltic

there WERE revenue approved schemes approved for some companies but these were scapped in the recent budget...may be a reason for the change...

Meclor

Hi,

The same has happened with us. I had 367 shares vest and all but 177 were held back for tax. Is this right. Seems like alot of tax to me. I thought that we would just have to pay 25% capital gains. Not 52% plus USC. Can someone please explain. Thanks