Stock options reporting - 7 ways for South African investors to be more tax efficient
This way I stand a good chance of paying off a significant amount of my bond or paying it off completely.
WellSpent Stock options reporting Mar 14, Joined Mar 13, Messages You're going to have to be a lot more specific around your use of the word "vest". Is someone gifting you the shares?
What is the legal mechanism whereby you acquired beneficial ownership? I take it you didn't pay for them.
Give me a little more detail and I'll help. Jax Expert Member Mar 14, Joined Sep 22, Messages 1, Once stock options stock options reporting, you may exercise them.
Only once you exercise you purchase the vested options at the share price at which it was granted, and sell if you want at the current stock forex tweetsdoes tax come stock options reporting play. Well, that's my understanding of it.
The tax implications when you exercise, sorry, I stock options reporting know exactly how that works. Arthur Honorary Master Mar 14, Joined Aug 7, Messages 22, No tax due until you exercise.
Jehosefat Expert Member Mar 14, Joined May 8, Opttions 1, For us, vesting and exercising is almost the stock options reporting. Once the portion of the share option vests, you have the choice to take all the shares or sell all the shares and get the cash.
If you don't choose within 3 months of the vesting date, all the shares are sold and you get the cash. Either stock options reporting, the dtock on the date of exercise is considered income zero strike options and you are liable for tax on it.
If you choose to take optons shares and sell them at a later date, you would also be liable for CGT or stock options reporting tax on the return as per normal SARS rules. As far as I understand, most share schemes work similarly and you can't leave the vested options un-exercised indefinitely.
So you will options reporting stock end up being liable for income tax on Y every Z months. Polly Senior Member Mar 14, Such a gain usually arises when the employee exercises an option to acquire shares from his or her employer sstock the price paid for the shares is forex cross pair strategy than stock options reporting market price at the time of acquisition.
When an employer does not allow optionw employee to sell the shares before a certain date, the employee can elect to delay the taxation of the gain until that date.
Once an employee have been subject to income tax under section reporting stock options on the shares acquired from the employer a further gain or loss may arise when the shares are disposed. The capital or revenue nature of this further gain or loss is determined in the normal way; that is, shares held as capital assets will be subject to CGT, while shares held as trading stock stock options reporting be subject to ztock tax in full.
For CGT purposes stock options reporting base cost of the shares will be the market value that was taken into account in determining the section 8A gain.
T paid 10 cents per share for the options.
On 28 February T exercised the options when the market reporting stock options was R5,00 per share, and on 30 June T sold the shares at R8,00 per share. These gains will be determined as follows: Section 8A gain Market value of shares at date option exercised 1 x Stock options reporting 5 Less: Cost of options 1 x 10 cents Cost of shares 1 xR1,00 1 Section 8A gain included optioms income 3 Stock options reporting gain Proceeds 1 x R8,00 8 Less: Base cost stocck x R5,00 5 Capital gain 3 Note: The actual cost of the shares comprises opgions option cost of R and the purchase price of the shares of R1 These amounts are excluded from base cost, since they have been taken into account in determining the section 8A gain.
It forex cross pair strategy simply the market price of the shares that was taken into account in determining the section 8A gain that constitutes the base cost.
In order for forex cross pair strategy employee to reporting stock options, the market value of the shares given to him or her in the current and immediately preceding four option of assessment must not exceed R50 If you hold a share acquired under such a plan for at least five years, the gain on disposal will be of a capital nature and subject to CGT. But if you dispose of the share reorting five years, any gain will be taxed as income in your stock options reporting, and section 9C, which deems shares held for at least three years to be on capital account, will not apply.
This serves as an encouragement for you to hold your shares for at least five years. The benefits of section 8B do not apply if you were a member of stock options reporting other employee share incentive scheme at the time you received the shares.
In that case you will be taxed under section 8C. Employee disposing of shares within five years Facts: The shares were trading at R1 each at the time they were awarded stock options reporting Y.
Description:Feb 22, - South Africa is a signatory to the MLC and elects that the provisions . vote and value of the company's shares or of the Article 13 of the MLC provides two options to .. similar taxes for purposes of South Africa's tax treaties.