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Taxation of Exercised Options and Vested RSUs

  • 20-02-2017 5:07pm
    #1
    yllw.ldbttr
    Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭


    Just a general query but I'm getting conflicting advice (not from experts) but was hoping someone here could steer me in the right direction.

    A person was granted Options and RSUs by their employer, as a deferred benefit, which vested after three years.

    Upon vesting of the option the person exercises the option as it's "in the money". Is PAYE/ PRSI and USC self assessed and due to be paid via a self declared RTSO form? And is it based on the amount that landed in a EURO account (if this person's bank did the FX), or does a Revenue FX rate need to be used? The options were on a USD equity.

    Ditto for the RSUs, they vested and converted to general stock/ common equity. Upon vesting or sale, how is the tax liability calculated? Is it again PAYE/ PRSI and USC or is it a capital gains tax?

    Would appreciate any advice you can offer.


Comments

  • #2
    tk123
    Registered Users, Registered Users 2 Posts: 14,062 ✭✭✭✭tk123


    Where I work the tax is already paid on the RSU when they get sold so you don't have to do anything. It's the ESPP i.e. if you're buying them with a % of your salary etc the tax is your problem to sort out so form RTSO (for the difference between buy and sell price) and then CGT if the gain is over €1200.

    EDITed to add my RSU have always been sold at a loss(!) lol so I've never had to pay CGT


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