You may give company shares to an employee which are either:
- free of charge
- at a discounted price
- under a share award, or share option, scheme.
There are different rules for shares and share options. Direct share awards are a benefit-in-kind (BIK). These shares are chargeable under the Pay As You Earn (PAYE) system to:
Employer PRSI does not apply to share-based remuneration.
You must include the cash value of these shares when completing your payroll submission for the period in which they are awarded.
Revenue approved schemes give certain IT exemptions. You can find more information in Shares for employees.
Value of the benefit
The value of the benefit is:
- the market value of the shares at the date you award them
- the value of the discount. (The difference between the market value of the shares when they are purchased and the amount paid).