Share schemes - employee information
Your employer can grant you a share option giving you the right to acquire shares in the company. These are commonly referred to as Unapproved share option schemes.
Revenue receives return(s) from your employer each year that show if you have:
- participated in a share scheme
- exercised, assigned or released share options
- or
- disposed of shares.
Why am I receiving this letter?
Revenue records show that you exercised an Employee Share Option.The Relevant Tax on Share Options (RTSO) of 52% due on the share gain has not been paid to Revenue within 30 days.
You are liable to pay tax on any gain when share options are exercised, assigned or released in an unapproved share scheme. Your employer will not have deducted the tax on your behalf.
RTSO comprises of the following:
Gains realised prior to 1 January 2024
If you realised a gain prior to 1 January 2024, you should:
What you need to do if you realise a gain prior to 1 January 2024
If you are jointly assessed, the assessable spouse must file the return.
For further information on the steps you will need to take, please see How to calculate and pay Relevant Tax on Share Options.
Note
You are considered a chargeable person for the year in which you exercise, assign, or release a share option. You must register for Income Tax self-assessment and file an Income Tax Return (Form 11) for that year.
I am not registered for Income Tax self-assessment
You can use Revenue's Tax registrations service to register for income tax.
I am not registered for ROS
You can register for ROS by clicking Register for ROS.
What other income should I declare?
You should declare the following when you file your Income Tax Return (Form 11):
- dividends you received from shares, that have not yet been reported to Revenue
- the disposal of shares (that you acquired by exercising an option). You must declare this disposal to Revenue, even if no tax is due
- and
- all other income.
I have already paid the tax due
You should send supporting documentation to Revenue. This can be done through MyEnquiries.
RTSO and CGT queries
RTSO is due on exercise of share options.
CGT is due on any gain realised on the sale or disposal of shares.
The exercise and sale are two separate taxable events where:
- RTSO is due within 30 days of exercise
- and
- CGT is due by 15 December or 31 January following disposal.
Note
For CGT disposals between:
• 1 January and 30 November, you must pay CGT by 15 December in the same tax year.
• 1 December to 31 December, you must pay CGT by 31 January in the following tax year.
If you have incorrectly paid CGT upon your share exercise gain, please contact Revenue to amend your returns.
Incorrect application of annual €1270 exemption
There is no annual exemption, deduction or relief available to claim against gain realised upon exercise of a share option. The personal exemption for CGT is not applicable towards RTSO.
I have received Employee Share Purchase Plans (ESSP) shares
Some ESPP shares might be drafted in such a manner that would make them Share Option Plans. This will depend on each individual plan.
If you exercise a share option, you must report details of any gain you make to Revenue and pay any tax liability directly. Your employer will not deduct tax on your behalf.
I am not aware I exercised share options
You should contact your employer’s HR or payroll department.
If you require further assistance
The easiest way to contact us is through MyEnquiries.