Tax liability on Restricted Stock Units

deeobrien

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I work for a US company I have received restricted stock units in the past in the US company. Typically they vest over 4 years (25% each year). So you get notified you will get 100 shares - you can sell 25 after year 1 and so on.

I am trying to figure out the tax liability for these. The revenue site seems to suggest RSU's are liable to income tax (from vest date). It does mention income tax under Section E or D and some are PAYE and others not. I wasn't too clear on what the differences were. Other places suggest the delayed activation date means they are only liable for Capital Gain Tax.

I was wondering are there any clauses that mean RSU's would only be liable for CGT?
 
Not sure if any class only liable to CGT. All I know is when mine vest approx 52% are sold to cover the income tax, then whenever I sell what's left I pay CGT on the gain (if any) being the difference between what price they vested at and what price I sold them at.
 
RSUs are liable for income tax, PRSI and USC. If you continue to hold them after vesting then any subsequent gains are CGT.

I think companies now have to collect tax on RSUs, typically by doing a sell to cover tax, but that was not always the case in the past.
 
RSUs are liable for income tax, PRSI and USC. If you continue to hold them after vesting then any subsequent gains are CGT.

I think companies now have to collect tax on RSUs, typically by doing a sell to cover tax, but that was not always the case in the past.

This is 100% accurate in my experience.
 
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