Grasshopper
Registered User
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Example 1
Lucy works for an Irish branch of a US corporation. Under her employer's ESPP,
she can purchase shares in the company at a discounted price of 85% of the
market value. The ESPP is not treated as a share option plan.
Exchange Rate is €1 = $1.10.
She contributes the same amount each month for six months, which is held in
a non-interest-bearing account. Shares were trading at €54 ($60) at the
beginning of the six-month offer period on the stock exchange. At the end of
the six-month offer period, they are trading at €60 ($66).
At the end of the six months, her contributions are used to buy shares at €46
per share (85% of €54). She must pay tax on the discount amount of €14 per
share (€60 less €46). Her employer makes the deduction through the payroll
system.
The cost of acquisition for Capital Gains Tax (CGT) purposes will be €60 per
share.
You can pay CGT on MyAccount, you just need to be registered for CGT.CGT is under the ROS side, not My Account. Ring Revenue to get you set up for the ROS account to pay CGT. Don't bother with going through the enquiries section online, they don't seem to respond to those.
As for your CGT, gain is 37K, I would expect you to deduct the 1.27K first before you apply the 33%
e.g. (37000-1270 = 35730. 35730*0.33 = 11790.9 tax due)
See example from Revenue (https://www.revenue.ie/en/gains-gif...-an-asset/selling-or-disposing-of-shares.aspx)
If you are not selling all of your shares in one go (for the individual company), you might want to keep track of it somewhere so you know the FIFO rule and apply the correct market value it was bought at and current sold value for calculating CGT purpose. It is cleaner if you list it out for each time you bought, work out the CGT per FIFO rule until the amount of shares is met, then total it up. I find it easier personally.
Another one for you to consider, with respect to ESPP, did you already pay the tax for the gains from the discount? (i.e. ESPP cost you are buying at versus market value the day it was acquired). I know the below example states payroll handles it (I have a vague memory that was not always the case until recently). Since you mentioned you have 8 years worth of shares, you may just want to have a quick gander at your past payslips to make sure those are paid already, otherwise you might owe revenue a bit more than expected.
Employee Share Purchase Plans (ESPPs)
This page explains the taxation of Employee Share Purchase Plans (ESPPs)www.revenue.ie
Thanks for the response.CGT is under the ROS side, not My Account. Ring Revenue to get you set up for the ROS account to pay CGT. Don't bother with going through the enquiries section online, they don't seem to respond to those.
As for your CGT, gain is 37K, I would expect you to deduct the 1.27K first before you apply the 33%
e.g. (37000-1270 = 35730. 35730*0.33 = 11790.9 tax due)
See example from Revenue (https://www.revenue.ie/en/gains-gif...-an-asset/selling-or-disposing-of-shares.aspx)
If you are not selling all of your shares in one go (for the individual company), you might want to keep track of it somewhere so you know the FIFO rule and apply the correct market value it was bought at and current sold value for calculating CGT purpose. It is cleaner if you list it out for each time you bought, work out the CGT per FIFO rule until the amount of shares is met, then total it up. I find it easier personally.
Another one for you to consider, with respect to ESPP, did you already pay the tax for the gains from the discount? (i.e. ESPP cost you are buying at versus market value the day it was acquired). I know the below example states payroll handles it (I have a vague memory that was not always the case until recently). Since you mentioned you have 8 years worth of shares, you may just want to have a quick gander at your past payslips to make sure those are paid already, otherwise you might owe revenue a bit more than expected.
Employee Share Purchase Plans (ESPPs)
This page explains the taxation of Employee Share Purchase Plans (ESPPs)www.revenue.ie
I don't believe it can be added according to the agent I spoke to few months ago, if you manage to get it in MyAccount instead of ROS, let me know.I did a bit more looking around and sent in a TR1 form to request CGT payment option be added to MyAccount.
I have registered but the agent told me I have to be registered for ROS side few months ago.. maybe it is a new thing for MyAccountYou can pay CGT on MyAccount, you just need to be registered for CGT.
I emailed them the form on Friday and they responded today, and added CGT payment option to My AccountI have registered but the agent told me I have to be registered for ROS side few months ago.. maybe it is a new thing for MyAccount
Oh must be new, thanks, I'll check it out and see if I can get mine over.I emailed them the form on Friday and they responded today, and added CGT payment option to My Account
It's been on mine for years, since my First Active shares were bought. I assumed that once you were registered for CGT, it would show up.I have registered but the agent told me I have to be registered for ROS side few months ago.. maybe it is a new thing for MyAccount
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