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Call Mosaic Tax Legal for Employee Share Scheme CGT

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If you’re planning to invest in employee share schemes, you should seek professional help from Mosaic Tax Legal. Their friendly team will help you set up an employee share scheme to suit your business’s needs just call Call Mosaic Tax Legal for employee share scheme CGT.

Share schemes are a great way for your employees to earn share options, but it is important to understand the tax implications, particularly when dealing with capital gains and losses. At Mosaic Tax Legal, our share scheme specialists can help you construct share schemes that benefit your staff, your business, and your bottom line.

Australia’s ESS/ESOP Tax Rules

Mosaic Tax Legal are specialists in Employer-Sponsored Share Schemes (ESS/ESOP) and Trusts responsible for advising non-super trustees on CGT and ESS/ESOP tax treatment. CGT and ESS/ESOP Tax treatment can be complex.

If you received a share of a company on the ASX, you might be able to claim a capital gain on the share. Mosaic’s Employee Share Scheme (ESS) provides eligible employees with the opportunity to receive a company share at a discounted price. This discount can be claimed by reducing the cost base of the share.

Employee Share Scheme Tax Implications

Share options, like share schemes, can be an effective way of gaining shares in your business. However, they also come with a number of tax implications which you need to be fully aware of to minimise your tax liabilities. Here are five factors to consider when looking to invest in employee share schemes.

  1. Tax Treatment.

Employee share schemes are, on the whole, taxable, so you will need to factor this into your calculations.

  1. Capital Exempt Gains

What sort of Capital Exempt Gains are applicable to shares? Capital Exempt Gains can arise when shares are bought for less than the market value, which varies by each scheme.

  1. Taxation on Dividends

Dividends are paid as a proportion of the shareholders’ shareholding. These dividends are taxable as income at the basic tax rate.

  1. Taxation on Capital Gains

When shares are sold, Capital Gains Tax needs to be paid at the basic rate