Ireland – Share remuneration: Update from the Irish Revenue Authorities
The Irish Revenue recently issued a clarification to the changes announced in the 2011 Budget in respect of share based remuneration. The clarification included comment on:
- Reclaims of overpaid social insurance,
- A grace period to allow implementation of payroll withholding, and
- Confirmation that existing benefit-in-kind rules will apply to the timeframe for the employer to recoup tax and social insurance from the employee.
Further, the Minister for Finance announced that as part of the Jobs Initiative, employer social insurance (PRSI) charges will be abolished on share remuneration with effect from January 1, 2011.