New Employer Reporting Requirements for Certain Share Schemes
New Employer Reporting Requirements for Certain Share Schemes

New Employer Reporting Requirements for Certain Share Schemes

There are several annual reporting obligations for employers who operate share schemes for their employees which are due for filing with Revenue by 31 March following the year end.

Finance Act 2020 introduced mandatory electronic reporting for employers of certain share-based remuneration. Revenue eBrief 120/21 which issued on 20 June 2021 announced the release of the new Employer’s Share Awards reporting return (Form ESA) which will be required to be submitted to Revenue annually. The Form ESA is now available on Revenue’s website and the format is very similar to the existing KEEP1, RSS1 and ESS1 electronic returns – a pre-formatted spreadsheet which can be uploaded through ROS. Previously, there was no prescribed format for reporting the above. 

 The new electronic reporting requirements are for the following:

  • Restricted Stock Units (RSU’s),
  • Restricted shares,
  • Convertible shares,
  • Forfeitable shares
  • Discounted shares
  • Growth shares
  • Any other award with cash-equivalent of shares

This will assist Revenue in gathering significant detail on the schemes giving them much greater visibility of such schemes as operated by companies and also in monitoring the compliance obligations of employees.

The new reporting requirement will apply from the 2020 tax year onwards.  The statutory deadline for 2020 tax year is 31 August 2021.  For 2021 tax year onwards, the filing deadline will be 31 March following the year in question.  This is in line with the filing deadline for other share scheme information returns (such as the Forms RSS1, ESS1 and KEEP1).

Our Private Client team has significant experience in advising employers and employees in relation to share schemes. Please contact any member of our team if you require advice. 

Please note: The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

Warren & Partners are a boutique Irish tax and business advisory firm based in Ballsbridge, Dublin. Our experienced-team of tax advisors will create unique tax solutions for your specific business needs.

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Olga Miller
Olga Miller

Tax Director

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Sinead Scanlan
Sinead Scanlan

Senior Tax Manager

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