Taxation on Employee Share Purchase Plan

[wanderer]

If one purchased shares under an ESPP, and this employee share purchase was deducted from salary every month.

Would this purchase be subject to PAYE, PRSI, USC etc?
Or would the remaining balance of salary after the ESPP deduction only be subject to PAYE, PRSI ...

If it is the latter then it may make sense to invest in the ESPP.
And if one did, what taxes would one have to pay on the proceeds (capital gains, dirt... etc) ?

Just trying to get my head around this.

edit:
Further checking through the forum seems to indicate that one will be liable for CGT @ 30% of the profits, upon sale of the shares.
With the first 1750 euro being tax free.

Does the requirement to hold the shares for a certain period of time apply as well?
i.e. If one sold before the minimum holding period then it would be subject to PAYE, PRSI, USC etc?

 

[elcato]

The deduction for purchase comes from your net salary. CGT comes into it if you don't sell the shares when they are first purchased at the end of the six months. You are liable if they fgain anything from purchase time to sale time and the 30% is only on the gain in that time.