Dáil Éireann Debate, Thursday - 8 March 2018
75. Deputy Pearse Doherty asked the Minister for Finance if the proposed deferred share bonus scheme of a bank (details supplied) would be subject to the excess bank remuneration charge of 45%; if a change to the taxation of non-standard performance related bank remuneration for the bank's executives would require legislative changes; and if he will make a statement on the matter. [11560/18]
Amharc ar fhreagraAs the deputy is aware Section 531AAD of the Taxes Consolidation Act 1997 provides for a charge on non "regular salary or wages" that exceed €20,000, paid to employees of financial institutions that received financial support from the State under the Credit Institutions (Financial Support) Act 2008.
This charge, the "excess bank remuneration charge", is incorporated into the Universal Social Charge and applies in all respects as if it was USC except that it is charged at a higher rate of 45%. The charge applies for 2011 and subsequent tax years.
I can therefore confirm to the deputy that this variable pay or bonus tax would apply to any remuneration which is variable including an award in shares. The power to alter the excess bank remuneration charge rests with Dail Eireann.
For the avoidance of doubt I have no current intention to lift any of the remuneration restrictions that are in place for the banks.
