CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Details Of Irish SME Share Scheme Announced

Details Of Irish SME Share Scheme Announced

by Jason Gorringe, Tax-News.com, London

20 October 2017


Ireland's 2017 Finance Bill includes a proposal for a Key Employee Engagement Programme, which will provide a tax incentive for employee share schemes offered by SMEs.

The aim of the scheme is to support SMEs in competing with larger firms to recruit and retain key employees. Under KEEP, any gain arising on the exercise of qualifying share options will be subject to capital gains tax (CGT) at the time of the disposal of the shares. CGT (currently 33 percent) will be applied in place of income tax, Universal Social Charge, and pay-related social insurance.

The shares must be held for a minimum period of one year before exercise (with limited exceptions). They must be exercised within ten years of the grant.

According to the Finance Department, "Smaller and/or younger companies with growth potential may not have the cash resources available to offer comparable salary packages to large, established businesses."

"However, where the employee believes in the growth potential of the firm, and by extension the potential for the company shares to increase in value, remuneration in the form of share options may improve the attractiveness of the SME employment offer."

The relief is subject to state aid approval by the European Union. Subject to this approval, KEEP will be available in respect of share options granted to employees of qualifying unquoted companies during the period January 1, 2018, to December 31, 2023.

TAGS: capital gains tax (CGT) | tax | business | Ireland | tax incentives | share schemes | employees | social security | tax reform | individual income tax | European Union (EU) | Europe

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »