Hi There,
I have a question on ESS Tax-deferred scheme via salary sacrifice.
I acquired some shares via ESS Tax-deferred scheme by salary sacrifice in Sep2022. The deferred tax point is Sep2023
When acquiring the shares in Sep2022, I salary sacrificed $5000 (100 shares @$50 per share, which was the market price in Sep2022). My company then matched the shares 2:1. So I got another 50 shares for free.
In Sep2023 (the deferred tax point), the market share price increased to $60 per share. At this point, the shares I have are the followings:
- 100 shares @ $60 per share = $6000 (acquired @ $50 per share with $5000 salary sacrifice)
- 50 shares @$60 per share = $3000 (company matched share I got for free).
In my tax return, how much should I declare in Item 12 - F (discount from deferral schemes)?
Option 1: $6000 + $3000 = $9000 (total shares @ market price on deferred tax point)
Option 2: $6000 - $5000 + $3000 = $4000 (total shares @ market price on deferred tax point less salary sacrifice)
Option 3: $3000 (only the share I got for free, as no discount received for the shares by salary sacrifice)
Could you please advise which option is the right answer? If they all wrong, could you please advise what is the right tax treatment?
Thank you very much!
368 views
1 replies