Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi all,
Vanilla are planning an update to the site on April 24th (next Wednesday). It is a major PHP8 update which is expected to boost performance across the site. The site will be down from 7pm and it is expected to take about an hour to complete. We appreciate your patience during the update.
Thanks all.

How does tax on bonuses

Options
  • 05-06-2021 9:37pm
    #1
    Alwandy
    Registered Users Posts: 49 ✭


    Hi,
    I understand the concept of taxes for cash bonuses but for my new role, I've been given a different opportunity for a large fin tech company that is based overseas.

    The bonus offer I have is a bonus based on my yearly salary based on 4 years (vesting) which gives me €€€ worth in shares for the company and also on top of that they give the same bonus in crypto currency. How will taxation work as I have to by myself arrange this (I'm on the high earner bracket).

    So short summary,
    I get two bonuses every year,
    One is given in shares and one in cryptocurrency both are in a vesting scheme that is gradually giving more every year up to 4 years.
    I need to pay taxes myself, how much is the tax expected on both? If so how to pay less and why :)


Comments

  • Options
    #2
    DmanDmythDledge
    Registered Users Posts: 883 ✭✭✭DmanDmythDledge


    Tax on share grants is taxable through payroll so surely the company should sort this out? Are you Irish tax resident? Do you carry out your employment duties in Ireland?


  • Options
    #3
    Alwandy
    Registered Users Posts: 49 ✭Alwandy


    DmanDmythDledge wrote: »
    Tax on share grants is taxable through payroll so surely the company should sort this out? Are you Irish tax resident? Do you carry out your employment duties in Ireland?



    I am a Irish tax resident, I do carry them in Ireland (Though I work in different countries time to time as a digital nomad if that makes sense). The contract specifies it is solely my duty to sort my taxes out, this includes my bonuses. All I am wondering is are they taxable, both. If so how much?


  • Options
    #4
    ED E
    Registered Users Posts: 36,164 ✭✭✭✭ED E


    Alwandy wrote: »
    The contract specifies it is solely my duty to sort my taxes out, this includes my bonuses.

    "my new role" makes it sound like a traditional job but really you're contracting for this firm? Weird that you'd get stock units as a contractor I think (maybe Im wrong there).

    Alwandy wrote: »
    All I am wondering is are they taxable, both. If so how much?

    It sounds like you'll basically treat them as income, your napkin maths is halve their value as take home pay.


  • Options
    #5
    DmanDmythDledge
    Registered Users Posts: 883 ✭✭✭DmanDmythDledge


    Alwandy wrote: »
    I am a Irish tax resident, I do carry them in Ireland (Though I work in different countries time to time as a digital nomad if that makes sense). The contract specifies it is solely my duty to sort my taxes out, this includes my bonuses. All I am wondering is are they taxable, both. If so how much?
    Talk to a tax advisor. Clauses like that are completely irrelevant to determine whether you're employed or self employed, all depends on the facts involved.


  • Options
    #6
    [Deleted User]
    Posts: 5,121 ✭✭✭ [Deleted User]


    I would expect the shares/crypto would be taxed as income in your payslip when it is transferred to you.

    Whether you decide to hold onto them or sell them later - any taxes due from the gain would be your responsibility.


  • Advertisement
  • Options
    #7
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    Are you getting paid a salary or are you invoicing them? Where are you paying tax, Ireland?

    Whether you are getting paid cash or shares etc. is irrelevant.

    Getting paid in crypto is odd. You could pay half the value at the time of receipt and it could halve or double (per example) subsequently having no benefit or making a large gain (further taxable, but in a good way).


Advertisement