Taxes on ESPP shares

[barbaros]

I am kind of confused about the tax payment directions for shares bought using ESPP. Revenue explained it here: revenue.ie/en/additional-incomes/employment-related-shares/employee-share-purchase-plans.aspx

1-) I fill RTSO1 form and send it and I have to do it in 30 days after buying shares.
2-) I have to pay taxes for difference between buying price and current market price. RTSO 40%, PRSI 4%, USC 8%. (Because I am in 40% tax bracket)
3-) The question is Revenue website says this, and I am kind of confused. Does the taxes at 2nd bullet point will get deducted from my paycheck automatically. Or do I have to visit revenue website and pay for it myself. Here is the reference: You will pay IT, Universal Social Charge (USC) and Pay Related Social Insurance (PRSI) on the amount of the discount. All deductions will be through payroll through the Pay as You Earn (PAYE) System
4-) And at the end of the year I need to fill form 11, not form 12 anymore as I deal with ESPP. Is this correct also?

Thanks!

Edit: Can't link to revenue's website direclty because of spam protection, sorry about that.

 

[Coldwarrior]

Does the taxes at 2nd bullet point will get deducted from my paycheck automatically. Or do I have to visit revenue website and pay for it myself.

Depends on how your employer handles it, some will do it for you from payroll and some won't and you'll have to pay it yourself. Ask your payroll department.

And at the end of the year I need to fill form 11, not form 12 anymore as I deal with ESPP. Is this correct also?

Form 11 yes

 

[_OkGo_]

Yes, it depends on how your employer deals with it. In my case, we have the option of same day sale or transfer to broker account.

• The same day sale is treated as BIK and handled by payroll so no forms or revenue to deal with. So it is very convenient
• The transfer to a brokerage means RTSO, payments to revenue and Form 11.

2-) I have to pay taxes for difference between buying price and current market price. RTSO 40%, PRSI 4%, USC 8%. (Because I am in 40% tax bracket)

Just to be crystal clear, the RTSO (IT,USC,PRSI) is on the difference between the discounted share purchase price (A) and the market vale on the day of purchase (B). If you then retain the shares and sell at some point in the future, you are liable for CGT on any further gain.
A - discounted share price
B - share price on date of purchase
C - share price on date of sale
RTSO: IT, USC & PRSI on the difference between of B minus A
CGT: difference between C minus B

 

[barbaros]

One last question (I didn't want to create a new thread as it's on same topic). What happens after I send RTSO1 form?
1-) Do I have to wait confirmation/some reference number from revenue to use it for payment? Or can I pay right away?
2-) I checked PAYE, make payment online section but there is no mention of Income Tax or RTSO payment. Should I pay it from somewhere else?
3-) Then I have to notify revenue with my payment confirmation I believe? (Which I can send it as same method I will send them filled RTSO1 form)