Unapproved share option schemes ireland


By using this website, you consent to the use of cookies in accordance with our Privacy and Cookie Policy. Employees can avail of certain share options from their company that may be 'tax free' or 'tax efficient'. However, it is useful to bear in mind that there are few benefits employees can receive that are completely 'tax free'. Approved Profit Sharing Schemes are subject to certain conditions set out in legislation and administered by the Revenue Commissioners.

The employer must hold the shares for a period of time called the "retention period" and the employee must not dispose of the shares before three years. If an employee disposes of shares before this time, he or she is liable to pay income tax on whichever is the lower of the following:. Approved Profit Sharing Schemes are subject to a number of conditions that should be checked with the Revenue Commissioners. More information can be found on the Revenue website.

Revenue approved Savings-related Share Option Schemes allow you to save for and purchase share options in your employer's company tax effectively. You should check with the Revenue Commissioners and your employer as to what rules apply to your share options and when you are liable to pay tax. The Key Employee Engagement Programme allows small and medium-sized enterprises SMEs the use of share-based remuneration to key employees. Its aim is to enable SMEs to compete with larger enterprises in the recruitment and retention of key employees.

The gain will instead be subject to Capital Gains Tax on a future disposal of the shares. This incentive is available for qualifying share options granted between 1 January and 31 December If you have a question relating to this topic you can contact the Citizens Information Phone Service on 07 Monday to Friday, 9am to 8pm or you can visit your local Citizens Information Centre.

Introduction Employees can avail of certain share options from their company that may be 'tax free' or 'tax efficient'. There are 3 main ways in which an employee can benefit from shares in the company: If an employee disposes of shares before this time, he or she is liable to pay income tax on whichever is the lower of the following: The market value of the shares when they were given to the employee or, The value of the shares at the time of sale Approved Profit Sharing Schemes are subject to a number of conditions that should be checked with the Revenue Commissioners.

Share options in your employer's company Revenue approved Savings-related Share Option Schemes allow you to save for and purchase share options in your employer's company tax effectively. Some assets are exempt from Capital Gains Tax. Find out if you are liable for Capital Gains Tax. Capital Acquisitions Tax If you receive a gift, you may have to pay gift tax on it.

If you receive an inheritance following a death, it may be liable to inheritance tax. Both these taxes are types of Capital Acquisitions Tax. Taxation of benefits from employment Employees can get certain benefits in addition to their salary or wages. Some of these benefits are taxed. This document provides information on how such benefits are taxed.

Contact Us If you have a question relating to this topic you can contact the Citizens Information Phone Service on 07 Monday to Friday, 9am to 8pm or you can visit your local Citizens Information Centre.