Thursday, 8 November 2012

Questions (109)

Seán Fleming

Question:

109. Deputy Sean Fleming asked the Minister for Finance the saving that would be achieved by ending the exemption from PRSI and universal social charge for save as you earn schemes; and if he will make a statement on the matter. [49273/12]

View answer

Written answers (Question to Finance)

I assume the Deputy is referring to the bonus or interest payable under a savings arrangement in connection with a certified contractual savings scheme. Any such bonus or interest payable qualifies for exemption from income tax and is also exempt from PRSI and USC. These schemes in general have restrictive conditions and generate very small bonuses or interest payments and as such any removal of the exemption would be expected to yield relatively small amounts of PRSI and USC.

I am informed by the Revenue Commissioners that, based on the bonuses and interest paid in 2011, the potential savings would be in the order of €75,000.

The Deputy will be aware that any gain realised by individuals on the exercise of share options under these schemes is already liable for employee PRSI and USC. In addition, any subsequent disposal of the shares may also give rise to a capital gains tax liability depending on movements in the market value of the relevant shares.