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RSU Tax Planning for Stripe Employees in Ireland
Tax treatment of RSUs: How restricted stock units are taxed in Ireland
Are you working for Stripe in Ireland?
If you are working for Stipe in Ireland and you have received RSUs and or stock options, you will need to pay tax in Ireland when you sell these shares. You are personally responsible for this.
The payment of tax on these shares is not taken care of by your employer Stripe.
You are personally liable to pay tax on the profit you make from selling your RSUs and/or stock options. You pay Capital Gains (33%) on this profit.
If you need help with your RSUs/Stock options or personal taxes. Get in contact below:
Do you pay Capital Gains Tax on RSUs?
When the shares are sold (disposed of) this is taxable and falls within the scope of Capital Gains Tax. The gain is calculated against the proceeds and the base value of the RSUs when they vest.
Capital Gains Tax on RSUs and Non-Doms
In most cases, the RSUs are held in a brokerage account outside Ireland. In essence, this means that the money is outside Ireland and if you are a Non-Dom, then it is not taxable here.
Potentially, a Non-Dom could only pay CGT on proceeds from an RSU disposal that they remit into Ireland.
Check out our Non-Dom page to learn more about the Non-Dom status.
RSU vesting and tax residency
RSUs are taxable where you are resident at the time of vesting. If the employee is not tax resident in Ireland at the time of vesting, then there is the potential that these RSUs are not taxable in Ireland.
In theory, you could move to another country shortly before the RSUs vest, become a tax resident there and not pay any tax in Ireland.
Say you were granted shares in 2019 and they were to vest on Jan 1 2022. You could move to another country in late 2021 and then become a tax resident there. Potentially, the vesting of those shares might not be taxable in Ireland even though you live in Ireland for a majority of that period. This is a crucial difference between RSUs and regular stock options.
How can tax planning help?
If you have RSUs that are about to vest or you are about to dispose of the shares, then it is very important to talk to a tax advisor first. You might be able to structure this in a way that could lighten your tax burden.
This is especially the case for Non-Doms and people that are willing/able to move to another country for a couple of years.
Get in contact using the link below or click on this link to book a meeting with a member of our team.
Do you need help with your RSUs or Stock Options?
We can help. Just book a meeting with us if you want to discuss your specific requirements or go straight ahead and contact us below.
Are you working for Stripe in Ireland?
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