Heya folks. As with most other investing related information in Ireland, employee share schemes are not straightforward! There's a lot of cross-over, but hopefully this video makes it a bit easier to understand. Questions or comments, hit us up below 👍Cheers - Ste & Cian.
Just found your channel today. I’m a student at Maynooth University. Doing accounting & finance. Interesting & helpful stuff posted on this channel. You lads ever coming back?
Great video, qq. If you've sold stocks in dollars and faced deductions when transferring the money to your Irish bank, do you know if these deductions can be offset in CGT tax as an expense? Fees I see is 2.5% for fidelity 😢
Heya Shiva - Sorry for the delayed response on this one! Busy few weeks on our side. Unfortunately, the non-dom side of things is getting a little bit too far into the weeds for us. We'd need to get some tax advice on it as neither Cian or I have any direct experience with it - so wouldn't want to send you astray with the incorrect info! Will have a look at it though and let you know what we find. You likely have already come across this blog post, but from a quick search on my end this may help somewhat, although it looks a little vague on the details. www.nathantrust.com/ireland-non-domiciled-tax#:~:text=Get%20tax%20advice-,Restricted%20Stock%20Options%20(RSU)%20and%20Non%2DDoms,that%20you%20remit%20to%20Ireland. I'm not totally sure if their view on 'domicile' is totally correct given that in their example the person has been in Ireland for 6 years... - Ste
Sorry for the late response - big summer off! Form is a pretty short one, any part in particular you're stuck on? We still have the video on the list, but just haven't gotten around to it 😅 Maybe we can help here in the comments
Hi Guys, Thank you so much for this video, it explains most of the things. I would like to know during the income tax return process(when filling form11 via ROS) where should we mention RSU income and RSU tax paid? regarding ESPP I found someplace to show, Form11 -> PAYE/BIK/Pensions (2) -> Share Options exercised, released, or assigned in 2021. should I use the same section for RSU as well? Thanks in advance
Sorry for the late response, Lilit - big summer off! I'm honestly not 100% sure myself on this one. I reckon where you suggested is fine, but always worth dropping revenue a quick note and quote the section you're referring to - as they should be reasonably quick to confirm whether you're in the right spot or not!
Hey there. I have both stock options that were granted to me when i joined my company, and RSUs. I totally get the RSU side of things. With the stock options, if I exercise and then sell on the same day, it's likely I won't have a gain or a loss for it to be subject to CGT, right? Or am I missing something? I understand I'll still need to file a CG1 form. Thanks in advance!
Hey Eamon, Thanks for the question. Which share scheme are you referring to? Different answers for each of them. Essentially, for stock options, you will pay (or be exempt depending on the scheme) incone tax, PRSI, and USC on the difference between option price and the market value of the shares on the day you exercise the option. If you decide to sell later, you will be liable to CGT on the difference between the market value on the date of option and the sale price. We have loads of guides on taxes in Ireland which you can check out below. Taxes in Ireland 💸: ruclips.net/p/PLvKfba1wmPk_zQLVB9tHyqhwbY2b7d1jv - Cian
can anyone explain to me, if i was to say save 500 euro, does that mean that i will be taxed for 500 euro less each month as it is deducted before tax? Or will i still be taxed as if the 500 euro is still part of my monthly pay
Hi guys, nice channel, I've just subscribed! I'm Brazilian but also an EU citizen, worked for the last 2 years in Ireland as a permanent employee (software engineer ). Now, I'll be travelling a little bit and working as a freelancer meanwhile for customers around the world. Do you think it's worth it to register myself as self-employed to invoice and pay my taxes in Ireland? If so, is it possible to do everything remotely? Thank you!
Hey Eric - nice one, welcome to the channel! So if you've worked here for the past two years, you're likely an Irish tax resident (assumably - link below explains this). www.citizensinformation.ie/en/money_and_tax/tax/moving_country_and_taxation/tax_residence_and_domicile_in_ireland.html#:~:text=You%20are%20resident%20for%20tax,for%20the%20second%20tax%20year. The next question comes down to whether you plan to continue your employment with the company AND freelance, or if you're just going to freelance yourself (sounds like it's just freelancing). If it's pure freelance work, then yes, you'll likely need to register as self-employed with Irish revenue and self declare your income via the Form 11 (we did a video on this also). ruclips.net/video/15fgO8-8o6g/видео.html In terms of the taxes in the countries you travel through, this is where things get a bit hazy as legislation hasn't really caught up. In the EU, you're probably fine, but if you're going further afield where visas come into play - the situation might be different. Some have 'digital nomad visas', some just offer holidays visas (and then you just work anyway, but I guess technically not permitted). In short, for peace of mind - just pay your taxes somewhere! Ireland probably your best bet, but if you're concerned, it might be worth just paying a tax advisor for a couple of hours of their time and getting a more official answer. Hope this somewhat helps! - Ste
Heya folks. As with most other investing related information in Ireland, employee share schemes are not straightforward! There's a lot of cross-over, but hopefully this video makes it a bit easier to understand. Questions or comments, hit us up below 👍Cheers - Ste & Cian.
Great breakdown lads! Ireland really need to step up the incentives for people to want to invest in shares!
Nice one, Darren. Yeah - especially when they're being handed to you on a platter! A serious way to compound the earnings. Cheers lad.
- Ste
Just found your channel today. I’m a student at Maynooth University. Doing accounting & finance. Interesting & helpful stuff posted on this channel. You lads ever coming back?
Great work lads. Learned more about these schemes in 5mins that I have from all the emails sent out from my company
Nice one, Paul - as did we recording it! Thanks for the comment.
- Ste
Nice lads, would appreciate a video on the RTSO1 form, even if its fairly straightforward. Loving the content!
Sorry for the late response - big summer off!
And yes we've had a few requests for this, so perhaps its time we do it :)
Great video, qq. If you've sold stocks in dollars and faced deductions when transferring the money to your Irish bank, do you know if these deductions can be offset in CGT tax as an expense? Fees I see is 2.5% for fidelity 😢
That was very informative guys, Thanks.
a request, can you also cover NonDomicile Policy in Ireland for RSUs and ESPP.
Heya Shiva - Sorry for the delayed response on this one! Busy few weeks on our side.
Unfortunately, the non-dom side of things is getting a little bit too far into the weeds for us. We'd need to get some tax advice on it as neither Cian or I have any direct experience with it - so wouldn't want to send you astray with the incorrect info! Will have a look at it though and let you know what we find.
You likely have already come across this blog post, but from a quick search on my end this may help somewhat, although it looks a little vague on the details.
www.nathantrust.com/ireland-non-domiciled-tax#:~:text=Get%20tax%20advice-,Restricted%20Stock%20Options%20(RSU)%20and%20Non%2DDoms,that%20you%20remit%20to%20Ireland.
I'm not totally sure if their view on 'domicile' is totally correct given that in their example the person has been in Ireland for 6 years...
- Ste
Any resources for filling in the RTSO form guys? Videos are fantastic by the way.
Thanks,
Matt
Sorry for the late response - big summer off!
Form is a pretty short one, any part in particular you're stuck on? We still have the video on the list, but just haven't gotten around to it 😅 Maybe we can help here in the comments
Hi Guys,
Thank you so much for this video, it explains most of the things.
I would like to know during the income tax return process(when filling form11 via ROS) where should we mention RSU income and RSU tax paid?
regarding ESPP I found someplace to show, Form11 -> PAYE/BIK/Pensions (2) -> Share Options exercised, released, or assigned in 2021.
should I use the same section for RSU as well?
Thanks in advance
Sorry for the late response, Lilit - big summer off!
I'm honestly not 100% sure myself on this one. I reckon where you suggested is fine, but always worth dropping revenue a quick note and quote the section you're referring to - as they should be reasonably quick to confirm whether you're in the right spot or not!
Thank you guys, I have one question. if you don't pay the tax for the ESPP, revenue will find out 100%?
Hey there. I have both stock options that were granted to me when i joined my company, and RSUs. I totally get the RSU side of things. With the stock options, if I exercise and then sell on the same day, it's likely I won't have a gain or a loss for it to be subject to CGT, right? Or am I missing something? I understand I'll still need to file a CG1 form. Thanks in advance!
Amazing video.
Is there CGT due on any gains made from Option price to Selling Price?
Hey Eamon,
Thanks for the question. Which share scheme are you referring to? Different answers for each of them.
Essentially, for stock options, you will pay (or be exempt depending on the scheme) incone tax, PRSI, and USC on the difference between option price and the market value of the shares on the day you exercise the option.
If you decide to sell later, you will be liable to CGT on the difference between the market value on the date of option and the sale price.
We have loads of guides on taxes in Ireland which you can check out below.
Taxes in Ireland 💸: ruclips.net/p/PLvKfba1wmPk_zQLVB9tHyqhwbY2b7d1jv
- Cian
can anyone explain to me, if i was to say save 500 euro, does that mean that i will be taxed for 500 euro less each month as it is deducted before tax? Or will i still be taxed as if the 500 euro is still part of my monthly pay
Hey Andre - When you say 'save', are you referring to saving via a share option scheme specifically?
Hi guys, nice channel, I've just subscribed!
I'm Brazilian but also an EU citizen, worked for the last 2 years in Ireland as a permanent employee (software engineer ). Now, I'll be travelling a little bit and working as a freelancer meanwhile for customers around the world.
Do you think it's worth it to register myself as self-employed to invoice and pay my taxes in Ireland? If so, is it possible to do everything remotely?
Thank you!
Hey Eric - nice one, welcome to the channel!
So if you've worked here for the past two years, you're likely an Irish tax resident (assumably - link below explains this).
www.citizensinformation.ie/en/money_and_tax/tax/moving_country_and_taxation/tax_residence_and_domicile_in_ireland.html#:~:text=You%20are%20resident%20for%20tax,for%20the%20second%20tax%20year.
The next question comes down to whether you plan to continue your employment with the company AND freelance, or if you're just going to freelance yourself (sounds like it's just freelancing). If it's pure freelance work, then yes, you'll likely need to register as self-employed with Irish revenue and self declare your income via the Form 11 (we did a video on this also).
ruclips.net/video/15fgO8-8o6g/видео.html
In terms of the taxes in the countries you travel through, this is where things get a bit hazy as legislation hasn't really caught up. In the EU, you're probably fine, but if you're going further afield where visas come into play - the situation might be different. Some have 'digital nomad visas', some just offer holidays visas (and then you just work anyway, but I guess technically not permitted).
In short, for peace of mind - just pay your taxes somewhere! Ireland probably your best bet, but if you're concerned, it might be worth just paying a tax advisor for a couple of hours of their time and getting a more official answer.
Hope this somewhat helps!
- Ste