Skip to main content

This is a new service – your feedback will help us to improve it.

  • EMI CG implications for SA if paid to me unevenly over 3 years.

    Hello, My company enrolled me into an EMI scheme which required me to remain employed for 3 years before the shares could be purchased. However at 2.5 years through the process the company was acquired and all of the EMI participants were (as far as I have been told) granted their shares and those shares were subsequently sold the same day at no direct cost to me (I assume the purchase price was removed from the overall award). I've been given 1 payment of roughly 62% of the expected (rough) final amount, the remaining 2x 19% payments are due to be paid to me in 2 payments, 1 in each of the next 2 years, providing certain company targets are met to the satisfaction of the new owners. I was advised that the total amount of the award needs to be declared in the first year and appropriate Cap Gains tax paid, is this true, despite the fact that I do not know specifically when, and considering there is a chance that the following 2 payments may not be received at all (or could be combined into 1 larger, sooner payment)? I have not been advised of the exact total amount due to me (nor provided the share sale paperwork. I was asked to sign a power of attorney to "reduce the administrative need to have all share holders in one place to sign the contract on the day"). Full deal documentation was promised but has yet to materialise despite repeated requests. I'm struggling to understand my tax responsibility and would appreciate any help or advice you can offer. Thanks.