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Government launches public consultation on share-based remuneration

By December 6, 2023No Comments

The Minister for Finance, Michael McGrath, has launched a public consultation on the taxation of share-based remuneration in Ireland.

The Government wants stakeholders in the share scheme sector to share their views and experiences on how Ireland’s share-based remuneration environment is operating for all users, how its use can best support economic activity, and how to ensure Ireland continues to meet international best practice standards.

The public consultation period will run until 22 January 2024. Submissions can be submitted at an online consultation portal.

The Department of Finance has offered guidance that the judicious use of Exchequer resources continues to be a key consideration for the Minister and the Department. It recommended that respondents should reflect on potential impacts of suggested changes to the current regime and provide analysis of the Exchequer cost/yield of their suggestions or proposals.

Finance Minister Michael McGrath

Launching the consultation, Finance Minister Michael McGrath said: “I believe that it is essential that this comprehensive review be undertaken to ensure that our policies around share-based remuneration continue to support Irish companies in attracting and retaining highly skilled and motivated employees, which in turn helps to ensure that Irish enterprises have the necessary tools to grow and expand, and consequently to support Ireland’s economic growth.

“This consultation provides stakeholders the opportunity to share their views and experiences, and to ensure their voice is an integral part of the review process. I would strongly encourage all stakeholders to participate in the consultation process.”

The public consultation was first announced in the recent Budget and forms part of a wider review of the taxation of share-based remuneration and the share scheme environment which will be conducted over the coming months.

Responses to the public consultation will feed into this overall review, which will also examine the recommendations from the Commission on Taxation and Welfare in relation to share-based remuneration.

IPSA Chair Marie Flynn said: “This public consultation is something that IPSA has advocated for on behalf of our members for some time. I encourage all those operating in the share scheme sector to make a submission, to provide insight into how existing share schemes work for businesses and their employees, to recommend improvements, and help shape a future where the taxation of share-based remuneration best serves businesses, employees and the wider economy in Ireland.”