Employer Share Schemes – 31 March 2023 Reporting Deadline

Employers who operate employee share incentive schemes should be aware of the annual filing obligations and the upcoming mandatory filing deadline for 2022. The due date for 2022 returns is 31 March 2023 and the return form to be filed is dependent on the type of share scheme operated.

Share Scheme Return Forms

• Form RSS1 - Employers are obliged to report the grant, release, assignment, and exercise of unapproved share options awarded to directors and employees

• Form KEEP1 - Employers are obliged to report the grant, release, assignment and exercise of options under the Key Employee Engagement Programme (KEEP) to directors and employees

• Form ESA - Employers are obliged to report the award of certain share-based remuneration such as restricted stock units (RSU’s), discounted/free/matching shares, employee share purchase plans (ESPP), restricted shares, convertible shares, forfeitable shares, phantom shares, stock appreciation rights, growth shares and other cash awards whose value is based on share value

• Form ESS1 - Employers are obliged to report details of certain events and transactions in shares held by an Approved Profit Sharing Schemes (APSS) trust

• Form SRSO1- Employers are obliged to report details of Save As You Earn (SAYE) plans

• Form ESOT1 - Employers are obliged to report details of Employee Share Ownership Trusts (ESOT) transactions

Failure to comply with these mandatory filing obligations may result in penalties. In the case of Revenue-approved schemes, Revenue approval of the scheme can be withdrawn, and for KEEP share option schemes, the company may no longer be considered as a qualifying company.

Next Steps

Employers should now review their share award activity for 2022 and arrange for the relevant reporting returns to be prepared and filed in advance of the 31 March 2023 deadline. Employers should also consider engaging with their employees to remind them of their personal tax obligations regarding share options and share awards.

If you would like to discuss these reporting obligations in further detail or require any assistance in preparing / filing the necessary returns, please do not hesitate to contact us.