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ESPP - Taxation

JimmyCorkhill · 2020-11-23 19:19:09

Hi, I have taken part in an ESPP in work in the last couple of years. Deductions are taken from my payroll each month and twice a year, shares are purchased in the company at a 15% discount. I wrongly believed the tax to be paid on the discount was being withheld by payroll but it turns out it is not. So for 2019 & 2020, I…

23-11-2020 7:19pm

#1

JimmyCorkhill

Registered Users, Registered Users 2 Posts: 373 ✭✭

Join Date: August 2019

Posts: 316

Hi,

I have taken part in an ESPP in work in the last couple of years. Deductions are taken from my payroll each month and twice a year, shares are purchased in the company at a 15% discount.

I wrongly believed the tax to be paid on the discount was being withheld by payroll but it turns out it is not.

So for 2019 & 2020, I have received 4 rounds of shares where I have not paid any tax on the discount.

I can find a bit of detail on the revenue site but I am not fully clear on it.
https://www.revenue.ie/en/additional-incomes/employment-related-shares/unapproved-share-options.aspx

I still have time to submit my 2019 tax return online, is there anywhere within ROS I can work out and input the amount I should have paid tax on for 2019?
Section 3 is non-PAYE income but I don't see anything around it for discounts on shares and an associated payment.

I think I am required to pay IT at the higher rate, PRSI & USC at the highest rate, so I can probably work out the amount to pay on the discount.

The link above, mentions filling out a RTSO1 form & sending to the Collectors general withing 30 days of receiving the shares. Surely it can be done online if I received shares in the last 30 days.

Any advice is greatly appreciated.

Thanks

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