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Sale of Stock options

  • 27-07-2013 5:21pm
    #1
    carnagesri
    Registered Users, Registered Users 2 Posts: 76 ✭✭


    I had stock options with my previous employer. I sold these just this week and I am waiting for the cheque to arrive. One of the business units of the company I used work for were bought out by another company and half the staff moved to this new company. They are US multinational. All of my colleagues have sold their share options this week. What do I need to do in relation to tax when the I get the cheque?


Comments

  • #2
    carnagesri
    Registered Users, Registered Users 2 Posts: 76 ✭✭carnagesri


    According to revenue I have to fill Form RTS01 - For the purpose of making a payment Relevant Tax on a Share Option to the Collector-General and also Form 11. This has to be done within 30 days of excersing the stock options. Also It says I have to fill out Form 11 Pay and file tax return. When does this need to be done? Any help would be greatly appreciated.


  • #3
    WildRosie
    Users Awaiting Email Confirmation Posts: 585 ✭✭✭WildRosie


    Form 11 for 2013 needs to be filed by 31 October 2014.


  • #4
    carnagesri
    Registered Users, Registered Users 2 Posts: 76 ✭✭carnagesri


    Is there any exemption on paying tax depending on how much you make etc..


  • #5
    WildRosie
    Users Awaiting Email Confirmation Posts: 585 ✭✭✭WildRosie


    Revenue's leaflet CG16 (link) on relevant tax on a share option states:
    RTSO is payable on the gain (i.e. the difference between the market value of the shares at the date of exercise of the option and the option price) and calculated at the higher rate of income tax applicable for the year in which the option is exercised (currently 41%).

    If a person considers that his/her entire income tax liability for the year will be chargeable at the standard rate of income tax (currently 20%) a written application can be made to the Inspector of Taxes dealing with the persons tax affairs seeking approval to pay RTSO at the standard rate of Income Tax.

    This approval must be obtained in advance of making a payment of RTSO calculated at the standard rate. Universal Social Charge and PRSI contributions should also be included.


  • #6
    carnagesri
    Registered Users, Registered Users 2 Posts: 76 ✭✭carnagesri


    Thanks for the info. So I pay income tax at 41%. What is the rate of USC and PRSI I pay? The gain I am making is around €1000.


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  • #7
    WildRosie
    Users Awaiting Email Confirmation Posts: 585 ✭✭✭WildRosie


    If you look at that link I posted, there is an example in it that will show you how to calculate it.


  • #8
    carnagesri
    Registered Users, Registered Users 2 Posts: 76 ✭✭carnagesri


    Once I fill out the RTS01 form and submit it and subsequently fill in form 11 before 31st October 2014 will the revenue keep asking me for Income tax return forms to be filled out from there on in.


  • #9
    carnagesri
    Registered Users, Registered Users 2 Posts: 76 ✭✭carnagesri


    The gain I am making is €850. Is there any chance that I am exempt from paying tax?


  • #10
    WildRosie
    Users Awaiting Email Confirmation Posts: 585 ✭✭✭WildRosie


    carnagesri wrote: »
    Once I fill out the RTS01 form and submit it and subsequently fill in form 11 before 31st October 2014 will the revenue keep asking me for Income tax return forms to be filled out from there on in.
    They may. You can write to them and ask them to de register you for income tax purposes if you will only have PAYE income and won't have any other obligation to file a tax return.
    carnagesri wrote: »
    The gain I am making is €850. Is there any chance that I am exempt from paying tax?
    I can't see how. You're a higher rate taxpayer. Do you have reason to believe you could be?


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