New Scheme - Key Employee Engagement Programme (KEEP)

Budget 2018 brought some good news for smaller employers thinking about giving their staff share options. A new, share-based remuneration incentive called 'KEEP' is being introduced from 01 January 2018. The aim of this is to assist SMEs to attract and retain key employees.

Many young ambitious companies can find it impossible to match the salary packages on offer from large multinationals when competing for key staff – they may, however, be willing to give share options as part of an overall package. This new incentive will reduce the tax burden on the employee receiving share options in an unquoted company.

From January 2018, any increase in value of the shares will be subject to CGT only. Up to now, employees in this situation also had to pay Income Tax, USC, and PRSI when they acquired the shares making it an expensive proposition for the employee.

Need help understanding how Budget 2018 impacts you? Book an appointment with your local TaxAssist Accountant today on 1890 987 609 or contact us on our online contact form.

Date published 10 Oct 2017

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.