Revenue approved share schemes

by Robert Scallon

Overview
An employer needs Revenue approval to set up certain tax-efficient employee share schemes. These are
known as ‘approved share schemes’. There are three types of Revenue approved employee share schemes:
• Approved Profit-Sharing Schemes (APSSs)
• Employee Share Ownership Trusts (ESOTs)
• Save As You Earn (SAYE) schemes.
Shares awarded, or options granted, under an APSS and SAYE scheme, are exempt from Income Tax (IT).
If the ESOT is used in conjunction with an APSS, those shares are also not subject to IT.
You must pay Universal Social Charge (USC) and Pay Related Social Insurance (PRSI) on the value of the
shares.

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