I Received Shares (RSU’s) From My Employer... Do I Owe Any Tax?

Short answer: yes — but when and how matters.

1. Income Tax applies on vesting day, not when you sell.

The moment your RSUs vest, Revenue treats their full value as employment income — taxed just like salary: Income Tax (20%/40%), USC, and PRSI.

For some people that's up to 52% gone immediately. The good news: you don't pay this out of pocket. Your employer handles it by selling some of your shares to cover the tax bill ("sell-to-cover").

2. Selling later can trigger a second, separate tax.

Once vested, if the shares grow in value before you sell, that growth is a capital gain — taxed at 33% CGT (minus your €1,270 annual exemption).

Example: shares vest at €50, you sell at €75 → your chargeable gain is €25.

3. Here's the catch: CGT is on you.

Unlike vesting, payroll doesn't handle this one — you must self-report and pay it yourself:

• Sold Jan–Nov → pay by 15 December

• Sold in December → pay by 31 January

Miss these deadlines and penalties can apply. This is the #1 way people get caught out — not because RSUs are complex, but because this step is easy to forget.

Quick checklist:
✅ Track vesting dates/values (your CGT cost basis)
✅ Remember: the payroll deduction only covers tax on vesting
✅ Calendar the CGT deadline the day you sell
✅ File with Revenue if you have RSU/CGT activity

Two tax events, two sets of rules. Know both, and you'll avoid the most common — and most avoidable — RSU mistake in Ireland.

#RSU #StockOptions #Ireland #Tax

Not tax advice — everyone's situation differs. Speak to a qualified advisor for your specifics.