Revenue has updated the Tax and Duty Manual regarding unapproved share options to reflect changes introduced in Finance (No.2) Act 2023. By virtue of section 128 TCA 1997, from 1 January 2024 the taxation of a gain realised on the exercise, assignment or release of share options no longer falls under individual self-assessment. Instead, employers are responsible for collecting income tax and USC from employees on share option gains and remitting those taxes to Revenue as part of the payroll process.
A consequential amendment was made to the Social Welfare Act with regard to the collection of PRSI by employers.