Taxation of RSUs

P

pgalvin

Guest
Hi,

New to RSUs so excuse my ignorance, but i'm finding it very hard to find out how and when i need to pay tax on them.
I get granted RSUs every year, a 1/4 of which vest the following year and the three after.
Even if i dont sell them after they vest, do i have to pay the tax on them?
If so how do i calculate this, record it, and pay it?
Do i also have to pay more tax when i sell them?
If so how do i calculate this, record it, and pay it?
Thanks in advance?
 
Assuming an unapproved share scheme, income tax payable when exercised/vested on the difference between option price and market value at that date.

Depending on the type of restriction, there may be a % abatement on amount charged to income tax.

If shares not sold immediately, there will be Capital Gains on the difference between sale price and exercise price.

You should get professional advice based on the share scheme rules, and the basis of the restriction therein.
 
I presume you are referring to Restricted Stock Units? If so, does this help? Scroll down the page to "Restricted Stock Units - Income Tax".

[broken link removed]
 
Thanks, but not a whole lot, its very hard to find detailed info...

But if i understand correctly so far i need to submit a 'form 12' for all RSUs (Yes -restricted stock units) vested in the year.
Is there any guide or instructions for completing the form 12?
If i submit a form 12 for 2007 now- i expect i will have to pay penalties- how do i calculate these?
Maybe i need to contact revenue, but from what i read- they are not exactly upto speed on these either, so i'd like to know myself before asking them!
Then i think when i actually sell the RSUs i need to pay- if applicaple CGT on any profit made between the grant price and the sale price.
 
The income tax calculation on the RSUs will depend on the detail set out in the Share Scheme documents.

These can be quite complex, so no one can give you any exact advice, and you can't calculate the amount on which you pay income tax without detailed examination of the Share Scheme Rules.

This is why I suggest you get advice. Even if you know where on the tax return to put the taxable amount - how will you arrive at the taxable amount?
 
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