On further research - I found out that mine is under Special Tax 83(b) election - On Vesting - No tax consequence. Vesting does not trigger inclusion in income of any appreciation in value of shares; no further tax until sale or other disposition.I have seen many posts on RSU CGT calculation.
Typically, let's say the company gives 10 shares, and they vest after 1 year.
Upon vesting they hold off shares/tax for PAYE, USC etc. - if you decide to sell the same day mostly no CGT unless stocks swayed in a big way.
If you instead decide to sell at a future date, then you have to pay CGT for the gain made from vesting date subtracting the annual exemption allowance.
Above is all clear to me - however my RSUs are charged differently.
Upon vesting, no shares/tax is withhold. Only when I sell the tax is withheld and shows up in payroll.
So, if I sell in a future date after vesting, I'm being charged for tax only on the sell date instead of the vesting date. And fidelity statements don't show the vesting date.
That brings me to the confusion - does it mean technically I'm not liable for CGT at all with the way my statements/charges work?
How will Revenue know when my shares vested if they are not showing in payroll/fidelity statements.
I would like to file for CGT return but confused on how to declare it properly.
You'll need to go back to your company to figure out just want is going on with your scheme. What does the information you were provided with when you signed up to the scheme say in relation to the taxation events?On further research - I found out that mine is under Special Tax 83(b) election - On Vesting - No tax consequence. Vesting does not trigger inclusion in income of any appreciation in value of shares; no further tax until sale or other disposition.
Cash-settled RSUs
You must pay Income Tax, USC and PRSI on the cash payment received by you. Your employer will make the necessary deductions through payroll and pay the tax directly to the Collector-General.
I seem to remember that thus rule just came in this year or last year. Do you have any authoritative source on it like revenue or even better a newspaper article? I wasn't able to find one when I looked recently.All companies are obliged to deduct RSU taxes at source via payroll when they vest.
The recent change was for ESPP/options. RSUs were pushed to payroll 13 or so years ago so it's harder to find sources on it. Also it wasn't a high profile news story partly as the Irish economy was collapsing at the time.I seem to remember that thus rule just came in this year or last year. Do you have any authoritative source on it like revenue or even better a newspaper article? I wasn't able to find one when I looked recently.
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