Form Rtso1 PDF Details

In the realm of taxation and employee benefits, understanding the procedural requirements when exercising share options is crucial. One such procedure involves the Rtso1 form, an essential document for individuals acquiring shares below their market value. This form comes into play as it directly pertains to the tax implications of such transactions, specifically addressing the income tax due on the net gain—the difference between the acquisition cost and the market price of the shares at the time of purchase. Known as the Relevant Tax on a Share Option (RTSO), this tax must be calculated at the highest income tax rate unless a lower rate is authorized through written approval from the local Tax Office. This responsibility falls on the shoulders of the employee, distinguishing from obligations like employer PRSI, which remain unaffected in these scenarios. In addition, the Universal Social Charge (USC) and the employee PRSI contributions are also subject to these taxation rules, with payments adjusted according to specific rates tied to the employee's PRSI class or any pre-approved reduced rates for USC. The RTSO1 form facilitates the payment of these taxes, aiming to streamline the reporting and payment process to the Collector-General. Its completion and submission are crucial steps in adhering to tax obligations, accompanied by a payment that reflects the detailed gains from share options, solidifying its role in the broader tax compliance landscape. Furthermore, the form's integration into the tax return process underlines its significance, ensuring that payments made contribute towards the individual's total tax liability for the applicable year, thus epitomizing the interconnectedness of individual tax events and overall tax responsibilities.

QuestionAnswer
Form NameForm Rtso1
Form Length2 pages
Fillable?No
Fillable fields0
Avg. time to fill out30 sec
Other namesrtso1 printable, rtso1 tax form, rtso1, rtso1 online

Form Preview Example

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Where a person exercises a share option and acquires shares for less than their market value, he or she is liable to income tax on the net gain, i.e. the difference between the market price of the shares on the date of their acquisition and the price paid (if any) to acquire those shares.An amount known as ‘Relevant Tax on a Share Option’(RTSO) in respect of the income tax li-

ability must be paid ottetteteoteeoptoexee . RTSO is to be calculated at the highest rate of income tax in force when the option is exercised, unless a person will be chargeable at the standard rate of income tax for the particular tax year and has applied for and obtained written approval to pay at the standard rate from his or her local Tax Office.

Share option gains are also chargeable to and employee . They are not chargeable to employer PRSI. Like Income Tax, USC is to be paid at the highest rate in force for the tax year in which the share option is exercised, unless advance approval is obtained for payment at a lower rate. The employee PRSI is to be paid at the rate applicable to the PRSI Class that applies to the employee for the particular tax year.

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APAYE employee who exercises a share option and who is required to pay RTSO is registered as a self-assessed person for the tax year in which the share option is exercised.Areturn of income (Form 11) should be completed and returned to Revenue by 31 October in the following tax year. It should contain details of taxable income including share option gains for the particular tax year and any payments made in respect of RTSO, USC and employee PRSI.Any payments made will be set against the person’s total Income Tax, USC and PRSI liability for the particular tax year.

Meanwhile, this form RTSO1 is to be used for the purpose of making a payment of RTSO, USC and employee PRSI to the Collector-General. The completed form should be forwarded, with the payment due, to the address below. tpott

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Further information is available in leaflet CG16, which is available on the Revenue website ateveuee

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Office of the Collector-General,

Sarsfield House,

Francis Street,

Limerick.

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The amounts entered are a full declaration of my gain on the exercise of a share option on the date indicated and my liability to RTSO, USC and employee PRSI in respect of that gain.

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field, multiplied by the highest rates of Income Tax and USC (unless approval obtained for payment at lower rates) and the appropriate PRSI rate.

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Any enquiry regarding liability should be addressed to the Revenue Office dealing with your tax affairs.

Any enquiry regarding payments should be directed to the Collector-General at the address shown overleaf or phone 1890 20 30 70.

·Cheque payments should be sent, with the completed payslip, to the Collector-General at the address shown overleaf.

·All cheques must be crossed and made payable to the Collector-General.

·Always write your PPS Number on the back of your cheque.

·Make sure that you allow sufficient time - at least three working days - for your payment to reach the Collector-General by the due date.

·Late payment of tax carries an interest penalty.

·Failure to pay a tax liability, or to pay on time, can result in enforced collection through the Sheriff, Court proceedings or a Notice of Attachment under Section 1002 of the Taxes ConsolidationAct, 1997.

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Part no. 1 in submitting rtso1

2. Soon after filling out the last part, go on to the next part and fill out the essential particulars in all these fields - My PPS Number is, Date on which the share option was, D D M M Y Y Y Y, The amounts entered are a full, exercise of a share option on the, RTSO USC and employee PRSI in, Signature, Your Total Liability should, rates and the appropriate PRSI rate, Total Amount of Gain made on Share, Total Liability, Whole euro only do not enter cent, and Whole euro only do not enter cent.

The amounts entered are a full, exercise of a share option on the, and RTSO USC and employee PRSI in inside rtso1

People frequently make errors while completing The amounts entered are a full in this area. Be sure you go over whatever you type in here.

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