My employer had granted me certain right to acquire shares in the year 2007. I exercised this right and acquired the shares on 1 August 2010. I have not sold any of these shares yet. Do I have to report these shares in this year's tax return? If I have to pay tax, how is this computed?

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My employer had granted me certain right to acquire shares in the year 2007. I exercised this right and acquired the shares on 1 August 2010. I have not sold any of these shares yet. Do I have to report these shares in this year's tax return? If I have to pay tax, how is this computed?

2011-10-31 05:40 PM

Amy

1 Answer

Your Answer

As you had exercised the right to acquire shares on 1 August 2010, you must report the relevant gain in the Tax Return - Individuals for the year of assessment 2010/11, and whether the shares have been sold is not a relevant consideration. For tax purposes, the relevant gain is to be quantified and taxed as follows:
open market value of shares at time of exercise
Less: amount of consideration given for the shares

2011-10-31 06:10 PM

Liz

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