Employee via EoR
You can grant non-qualified stock options (NSO) to local residents workings as contractors in Ireland.
- The grantee will be responsible for all tax payments and declarations so the company won’t legally have anything to do during the entire lifecycle of the stock options.
- The tax treatment of the gain made upon exercise of the stock options is not clear and depends on the individual circumstances of the contractor, for instance whether he/she works via a personal management company.
- There is no specific law or guidance on stock options when they’re offered to contractors and it’s not common to offer stock options to contractors in Ireland, so it’s particularly recommended for the grantees to consult a personal tax advisor.
- It’s likely that taxation should take place at the time of exercise (with the spread to be reported as a trading income) and at the time of sale (with the sale gain to be reported as a capital gain).
- Granting stock options to contractors could increase the risk of requalification of the relationship into an employment relationship.
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