Dáil Éireann Debate, Tuesday - 15 July 2014
200. Deputy Kevin Humphreys asked the Minister for Finance to outline the yield in each year since 2011 following the changes to the tax treatment of gains arising from various types of share schemes; if he will provide a breakdown by tax type yield; the taxes that apply; the types of schemes; and if he will make a statement on the matter. [31159/14]
Amharc ar fhreagraShare schemes fall into two broad categories, including schemes in which the employee or director is given an option to acquire shares (at no cost or at a pre-set price) at some future date and schemes which involve the granting of shares to an employee or director as remuneration.
In relation to share options, the gain realised through the exercise of the option continues to be liable to income tax under the self assessing system. In addition, since 2011, these gains are liable to USC and an employee PRSI contribution.
The individual is responsible for paying over the income tax, USC and PRSI on these gains to the Collector-General. Since 2011 this payment must be made within 30 days of the options being exercised under the Relevant Tax on Share Options (RTSO) provisions, rather than, as previously, on the later pay and file date.
The RTSO yield for each year is
|
YEAR |
YIELD |
|
2011 |
€60m |
|
2012 |
€77m |
|
2013 |
€86m |
|
2014 |
€60m (estimated). |
The breakdown of this yield in respect of income tax, USC and PRSI is estimated as
|
TAX TYPE |
BREAKDOWN |
|
Income tax |
79% |
|
PRSI |
8% |
|
USC |
13% |
Remuneration given by way of shares is also liable to income tax, USC and the employee PRSI contribution. Since 2011 this is collected under the PAYE system. As the amounts of income tax, USC and employee PRSI are not shown separately on the PAYE end of year returns, it is not possible to give the yield arising on such remuneration.
