In Ireland, the mandatory due date for filing Returns of Information for employee share participation schemes is approaching. This is particularly important for companies where employees and directors have been granted share options, or options have been assigned, released, or exercised by employees and directors, or a Revenue approved share participation scheme has been operated in 2013.
The mandatory filing requirement also applies to the following Revenue approved share participation schemes:
Corporate compensation and benefits as well as tax professionals should consider their company’s filing obligations and act to collect and organize the necessary information for purposes of the reporting obligations discussed in this newsletter. Additionally, consideration needs to be given to whether the exercise of an option by an assignee to Ireland is reportable.
The mandatory due date for the filing of Returns of Information in Ireland for employee share participation schemes in respect of 2013 is 31 March 2014. Failure to comply with this mandatory filing obligation will result in a penalty and, in the cases of Revenue-approved schemes (such as Approved Profit Sharing Schemes, Employee Share Ownership Trusts, and “Save as You Earn” schemes) Revenue approval can be withdrawn.
The 2013 Form RSS1 requires the reporting of the grant, release, assignment, and exercise of share options and other rights awarded to directors and employees (section 128 TCA 1997) only. Thus companies need not report on Form RSS1 the award of shares (including restricted and forfeitable shares), the vesting of restricted stock units, and taxable events arising under the convertible employment-related securities legislation.
The information contained in this newsletter was submitted by the KPMG International member firm in Ireland.
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