Companies operating equity incentive schemes must be aware of the requirement to file an annual return of information with the Irish tax authorities by 31 March after the end of each tax year.
The returns in respect of 2022 activity are due by 31 March 2023.
Penalties for failure to make returns may apply and, in particular:
- The Revenue Commissioners may withdraw approval for any ‘Revenue approved’ incentive schemes (approved profit-sharing schemes, employee share ownership trusts or save as you earn schemes) which the company is operating.
- The company would no longer be a “qualifying company” for the purpose of any share option schemes under the key employee engagement programme (KEEP).
Employers should review any equity incentive schemes that they currently have in place to make sure they fully understand their reporting obligations.
The type of annual return form to be filed will depend on the type of schemes operated by the company. While many forms can be filed electronically, some forms still require submission in paper format.
Please consult with your tax compliance advisor to determine the appropriate form or forms for the schemes which your company operates.
For more information on establishing and managing share schemes in Ireland, please consult a member of our Employee Share Incentives team.
The content of this article is provided for information purposes only and does not constitute legal or other advice.