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Shares received - is it taxable

Posted 30 June 2016 under Tax Q&A
Leani says:
30 June 2016 at 11:55

The company gave all staff members shares (for free). The shares have not been paid out, but the value of the shares acquired is reflecting on the IRP5 form as "Other Income".

Where do we declare it on the tax form, and should we pay tax on this benefit. How is it calculated?

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TaxTim TaxTim says:
30 June 2016 at 12:34

You can declare the income under other income from the PAYE 5 questions.

Yes you should be taxed on this fringe benefit. It is calculated on the value of the share on the date they became yours less any amount which you paid for it.

Great benefit - except for the tax.

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