Tax Liability for Employee Stock Options - PAYE, CGT etc?

[Quoi?]

I have the opportunity to buy into an Employee Stock Options programme.

I pay in over the course of the next 6months or so, and the stocks are then purchased at 85% of the prevailing market price on the final date.

The advice from my Finance dept, who usually know their stuff is as follows:

1. The difference between what I buy them for and what they are worth on that date (i.e. the 15%) is considered normal income - and taxed at PAYE/PRSI rates.

2. When I sell, I pay CGT on the difference between the market value on date of purchase (NOT what I paid) and what I sell them for.

Individuals are CGT exempt up to a gain of €1270/year.

i.e.
Value on Date of purchase: €1000 (I pay €850)
-I pay PAYE/PRSI on €15

I sell later for €1200
-I pay CGT on €200 (€1200 - 1000)
-In this case, I pay no CGT as the gain is less than €1270



Does this sound right?

 

[Quoi?]

Nobody here knows this?

 

[Eeyore]

Thats correct. You need to fill out and return form RTSO1 with a payment within 30 days of when you acquire the shares.

 

[MAJJ]

Also, the shares may earn you Dividends, this is also income.