Understanding RSU's for Non Domiciled residents in Ireland

Let us understand first what is an RSU. RSU stands for Restricted Stock Unit. It is a type of equity compensation where an employer grants an employee a certain number of shares or units that vest over time. Once the units vest, the employee receives the shares or their cash equivalent.

As a non-domiciled resident in Ireland, you may be subject to different tax rules for RSUs than a resident or domiciled employee. The tax treatment will depend on several factors, including the terms of the RSU plan, the location of the employer, and the tax treaty between Ireland and your home country.

If the RSU plan is based in Ireland, and the shares are granted while you are a tax resident in Ireland, you will likely be subject to Irish tax on the value of the shares at the time they vest. The tax rate will depend on your income tax bracket, and you may also be subject to PRSI (Pay Related Social Insurance) and USC (Universal Social Charge) contributions.

If the RSU plan is based outside of Ireland, the tax treatment may depend on the specific terms of the plan and the tax treaty between Ireland and your home country. In some cases, you may be able to claim a foreign tax credit to offset any tax paid in Ireland.

It's important to note that the rules around RSUs and taxation can be complex, so it's always advisable to consult with a tax professional who has experience with taxation to ensure you are compliant with all relevant tax laws and regulations.

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