Strawberries
Registered User
- Messages
- 22
Hi guys,
Am confused due to conflicting information online and need some help!
I live in Ireland and started working for an American company a couple of months ago.
As part of my package I was granted X number of stock options which will begin vesting once I'm in the company 12 months. These are stock options, not RSUs and they are long options, as I have 10 years to exercise them after vesting. Apparently the fact they are long options makes all the difference.
My question is - do I have to pay income tax on them when they vest, or is it only if I opt to exercise them? Presuming, that is, that I would stand to make a profit from them.
People keep telling me that I only have to pay tax on them if I exercise them, but Revenue's website seems to say otherwise (here and [broken link removed]).
"Long option
When you exercise a ‘long option’, you may have to pay IT on the grant date and the date you exercise the option. You will only pay IT if the option price is less than the market value of the shares at the grant date. The tax is due on the difference between the market value of the shares on the grant date and the amount you pay when you exercise the option.
When you exercise the option, the tax is due on the difference between the market value of the shares on the date you exercise them and the amount you paid for the shares."
Thanks!
Am confused due to conflicting information online and need some help!
I live in Ireland and started working for an American company a couple of months ago.
As part of my package I was granted X number of stock options which will begin vesting once I'm in the company 12 months. These are stock options, not RSUs and they are long options, as I have 10 years to exercise them after vesting. Apparently the fact they are long options makes all the difference.
My question is - do I have to pay income tax on them when they vest, or is it only if I opt to exercise them? Presuming, that is, that I would stand to make a profit from them.
People keep telling me that I only have to pay tax on them if I exercise them, but Revenue's website seems to say otherwise (here and [broken link removed]).
"Long option
When you exercise a ‘long option’, you may have to pay IT on the grant date and the date you exercise the option. You will only pay IT if the option price is less than the market value of the shares at the grant date. The tax is due on the difference between the market value of the shares on the grant date and the amount you pay when you exercise the option.
When you exercise the option, the tax is due on the difference between the market value of the shares on the date you exercise them and the amount you paid for the shares."
Thanks!