The deadline for employers to discharge their reporting obligations in relation to share scheme reporting is fast approaching. If you are an employer who has operated a share scheme or has provided shared based remuneration to employees in 2024 you should be aware of the upcoming filing obligations. The due date for such returns is 31st March 2025.

There are different returns required depending on the type of share scheme operated/share remuneration provided. We have outlined below the type of share schemes and the forms required for each.

Form RSS1:

• Share Options & other rights granted to directors/employees

Form ESA:

• Restricted Stock Units (RSU’s)
• Discounted / Free / Matching Shares
• Employee Share Purchase Plans (ESPP)
• Restricted Shares
• Convertible Shares
• Forfeitable Shares
• Phantom Shares
• Stock Appreciation Rights
• Growth/Hurdle/Flowering Shares

KEEP1:

• Key Employee Engagement Programme (KEEP) – Details of share options

ESS1:

• Approved Profit Sharing Schemes (APSS)

SRS01

• Save As You Earn Schemes (SAYE)

ESOT1:

• Employee Share Ownership Trust (ESOT)

The detail required on the returns relates to the grant, assignment, release of rights, allotment of shares or transfer of any assets granted under these schemes/awards. It is important to note that trustees of approved share schemes must file an annual return (ESS1/SRS01/ESOT1) for each year even in cases where a nil return would be required and where no events have taken place in the year. It should be noted that penalties for failure to make returns may apply. Share based remuneration and share based schemes continue to be the subject of Revenue compliance interventions and in that regard, re-emphasises the need for employers to ensure that such schemes are taxed correctly and associated reporting requirements discharged in line with the relevant deadline.

Reporting Obligations from 1 January 2024

From 1 January 2024, the reporting and withholding obligation for Share Options fell to the employer, thereby removing the onus from the employee to file an RTSO 1. As a result, employees were no longer regarded as a chargeable person for the purposes of share options.

Share options exercised on or after 1 January 2024 are taxed through the PAYE system. The employer must deduct Income Tax, USC and PRSI through payroll on any gain arising from the exercise of share options. Employer PRSI is not due on share option gains subject to certain conditions.

Contact Us

If you require assistance with completion or submission of the above returns, please contact a member of our team.

• Michael Nally, Tax Manager - (090) 6480600
• Tanya Dooley, Tax Manager -  (01) 6440100
• Céire Muldoon, Senior Tax Manager - (01) 6440100