A. In the majority of cases once you have exercised a share option you will have to file a tax return and pay over income tax on any gains that you have made.
The income tax due on the exercise of a share option is known as RTSO (Relevant Tax on a Share Option).
RTSO must be paid to the Collector-General not later than 30 days after the date on which the share option is exercised.
RTSO is payable on the difference between:
(a) the market value of the share(s) at the date of exercise of the share options; and
(b) the option price.
A Form RTSO1 is used for the purpose of making an RTSO payment to the Revenue.
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