Advertisement
Help Keep Boards Alive. Support us by going ad free today. See here: https://subscriptions.boards.ie/.
https://www.boards.ie/group/1878-subscribers-forum

Private Group for paid up members of Boards.ie. Join the club.
Hi all, please see this major site announcement: https://www.boards.ie/discussion/2058427594/boards-ie-2026

Tax on options

  • 05-06-2020 09:15PM
    #1
    iAcesHigh
    Registered Users, Registered Users 2 Posts: 448 ✭✭


    Another tax question for company options.

    Let's say company gave me options for 100 shares at €30 and I want to sell them when they are at €50. If I got the table attached here correctly I have 2 options:

    1. Exercise which I presume means just "taking the difference", so €20 per share in the above scenario or €2000 in total on which I'll pay Income tax up to 48% and 4% of social tax for a total of 52% meaning my NET profit will be €960
    2. Buy shares at €30 per share, meaning I'll pay €3000 for them and then straightaway selling them for €50 per share or €5000 for the same gross profit of €2000 difference being I now only need to pay CGT of 33% meaning I'll have a NET profit of €1340

    On one hand the above seems silly as I feel everybody would go for option 2, but I'm maybe completely misinterpreting what exercise and sell mean?


Comments

Advertisement
Advertisement