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Buzz101(Newbie)Newbie
12 Nov 2024

I have received some shares (will vest in phases each year) as part of the employee share scheme from my company as a reward for my work performance. I have not sold any of these shares yet. However, when I did my tax return, these shares automatically appeared in my income/asset list and hence, added to my total income & tax calculation. SInce I have not sold/disposed these shares, do I need to pay tax on these received shares? Can I remove this and add this back when I sell these shares? what happen when I sell these shares later? does it mean I will need to pay tax twice?

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154 views
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Most helpful replyATO Certified Response

knaresbro(Devotee)Devotee
ATO Certified Response12 Nov 2024

Last question first: yes, you may pay tax twice, but they're different types of tax, @Buzz101.


You should have an Employee Share Scheme Statement from your employer which will explain how the shares you received were valued and whether or not you need to pay tax on any discount you received. The value involved will appear in one or more of three categories. And no, you can't remove the amounts involved.


At some later date when you sell the shares, you will need to calculate the capital gain or loss. The cost base for the shares involved will depend on the type of discount mentioned in the previous paragraph.


This ATO page should help.

https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/employee-share-schemes

All replies

Most helpful replyATO Certified Response

knaresbro(Devotee)Devotee
ATO Certified Response12 Nov 2024

Last question first: yes, you may pay tax twice, but they're different types of tax, @Buzz101.


You should have an Employee Share Scheme Statement from your employer which will explain how the shares you received were valued and whether or not you need to pay tax on any discount you received. The value involved will appear in one or more of three categories. And no, you can't remove the amounts involved.


At some later date when you sell the shares, you will need to calculate the capital gain or loss. The cost base for the shares involved will depend on the type of discount mentioned in the previous paragraph.


This ATO page should help.

https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/employee-share-schemes

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