ESPP taxes handling clarification

Drotciv

Hello,

I used the search function but couldn't find the info I lack at the moment.

I am enrolled in an ESPP within the company I work for.
As for most ESPPs, the discount is 15% off of the purchase price.

10% of my pay is held every month, and there is a payout in the form of shares every six months.

Now I understand you need to pay Income Tax on the discount:

https://www.revenue.ie/en/additional-incomes/employment-related-shares/employee-share-purchase-plans.aspx



1. Income Tax when purchasing can be “up to 40%”, but I cannot seem to find out how it is determined?

I am currently earning 35 000€ and am therefore below the first tax band, which stands at 35 300€.
Does it mean the income tax paid is:
First tax band: 20%
USC: 8%
PRSI: 4%
For a total of 32%?

2. It is Income Tax for the purchase of the shares, but what about the sale? Does it fall under CGT minus the 1270€ tax free, or is it under Income Tax as well?

Now on the same page, it also states:



3. Does it mean that taxes are being paid straight from the source and I therefore have nothing more to do?

Because then, still on the same page, it also states:



And I have no idea what this really means.

Now to pay taxes on the purchase, I understand you have a delay of 30 days after the purchase date:

https://www.revenue.ie/en/additional-incomes/employment-related-shares/unapproved-share-options.aspx



But this page refers to Unapproved share options, and I am not sure if it is the same thing or not.

4. I started purchasing said shares last year, and was not aware of the 30 days limit (if it applies). When opening the RTSO1 form:

https://www.revenue.ie/en/additional-incomes/documents/form-rtso1.pdf

There’s a whole part on the “Importance of Prompt Payments”:



There is nothing about the nature of the fees. I would like to know if there are any numbers or rates anywhere so that I would be able to calculate my late payment fee on top of the regular fees to declare?

Thanks for reading!

pabloazazel

I am in a similar spot as the @Drotciv, do you know if we have to fill out the form11 too?