Dáil Éireann Debate, Thursday - 8 December 2016
18. Deputy Fiona O'Loughlin asked the Minister for Jobs, Enterprise and Innovation the mechanisms that have been explored through which SMEs can reward key employees with share options in a tax efficient manner; and if she will make a statement on the matter. [39102/16]
Amharc ar fhreagraEnterprise 2025 has ambitions for our Irish owned enterprises to scale and compete effectively in international markets. Strong leadership together with a skilled workforce that is committed to high performance is key to achieving this ambition. SMEs in Ireland compete not only internationally to attract skills, but also nationally given the presence of large scale foreign owned enterprises here.
Employee participation in their company’s ownership increases competitiveness and supports employment.
To progress the commitment set out in the Programme for Government, the Department of Finance carried out a consultation and review of share-based remuneration earlier this year.
The current share based incentives do not take account of the specific circumstances of SMEs, and are not an attractive proposition. My Department, working together with the enterprise development agencies, submitted to the consultation process.
The Tax Strategy Group papers that are available online provide an outline of the current mechanisms, international comparisons and alternatives for change.
I am delighted that the Minister for Finance announced his intention to develop a new SME-focused share-based scheme to be introduced in Budget 2018. This will require engagement by his Department with the European Commission to ensure that it will comply with State Aid rules.
I and my officials will continue to engage with the Department of Finance as the scheme design is progressed over the coming months.
