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Taxation of Foreign Sourced Employee Share Schemes

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    in March 2019,  I had shares from a foreign sourced employee share scheme (ESS) vest.  These shares were granted to me in 2016 while I was working for a foreign company, in a foreign country (DTA exist), and non resident to Australia. I became an Australian resident for tax purposes in May 2018. 

   

     Is the total market value of these shares considered assessable income in 2019 or does it need to be apportioned to account for my non resident status for 2/3 of the vesting period?

 

 

 

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Hi @GT1000,

 

Welcome to our community!

If you are an Australian resident and you acquired ESS interests during your engagement in foreign service, the discount received on those ESS interests may be exempt from tax. To be exempt, you must have been engaged in foreign service for a continuous period of not less than 91 days. However, the exemption will not be available if your ESS interests are exempt from tax in the foreign country.

 

The ESS - Foreign income exceptoon for Australian residents page on ato.gov.au will hopefully provide more insight. It also specifies additional considerations regarding exemptions for ESS interests acquired after 30 June 2009.

 

Let me know if you have any other questions.

 

Thanks,

EmilyW

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Hi @GT1000,

 

Welcome to our community!

If you are an Australian resident and you acquired ESS interests during your engagement in foreign service, the discount received on those ESS interests may be exempt from tax. To be exempt, you must have been engaged in foreign service for a continuous period of not less than 91 days. However, the exemption will not be available if your ESS interests are exempt from tax in the foreign country.

 

The ESS - Foreign income exceptoon for Australian residents page on ato.gov.au will hopefully provide more insight. It also specifies additional considerations regarding exemptions for ESS interests acquired after 30 June 2009.

 

Let me know if you have any other questions.

 

Thanks,

EmilyW

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Newbie

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Thanks Emily W.  Your answer was quite helpful.