Pearse Doherty
Ceist:241. Deputy Pearse Doherty asked the Minister for Finance the tax treatment of Irish REIT shares which are given as share based remuneration to employees of Irish REITs. [27116/17]
Amharc ar fhreagraTuesday, 20 June 2017
Ceisteanna (241)
Freagraí scríofa
Where an Irish REIT gives shares in that company as remuneration to its employees, the shares are taxable as perquisites under section 112 of the Taxes Consolidation Act, 1997 and they are treated the same as shares in any company that are awarded or given to its employees. The shares are also liable to USC and employee PRSI.
Where an employer awards shares to an employee free or at a discount, they are taxed within the PAYE system. The value of any shares awarded, or the value of any discount, is treated as notional pay at the time the shares are given to the employee. The related income tax, USC and PRSI liability is remitted by the employer company with the relevant P30 return.
Any dividend income from the shares is liable to tax under Schedule F and, if the shares are disposed of, any gain made is liable to Capital Gains Tax in the normal way.
The Deputy will be aware that there are a number of Revenue approved employee financial participation schemes, which provide limited income tax relief, such as approved profit sharing schemes and savings-related share option schemes. These are available to all Irish employer companies, including an Irish REIT.