The new electronic Employer’s Share Awards return (Form ESA) was made available on the Revenue website on Monday 21 June 2021. The Form ESA applies for the tax year 2020 onwards, with a filing deadline of 31 August 2021 for the 2020 return only. For subsequent years, the reporting date of 31 March following the relevant tax year will apply. Revenue updated a number of Tax and Duty Manuals to include guidance on filing the new return and a number of chapters in the Share Scheme manual are also updated.

Section 8 of Finance Act 2020 provided for the mandatory electronic reporting of certain share-based remuneration through amendments to sections 897B, 128C, 128D and 128E TCA 1997. This includes restricted stock units (RSUs), restricted shares, convertible shares, forfeitable shares, discounted shares, and any other award with cash-equivalent of shares.

Instructions and explanatory notes for taxpayers and agents on the electronic Form ESA are included in the form and the relevant Tax and Duty Manuals.

You can access the Form ESA in Revenue eBrief No. 123/21.

The following chapters of the Share Schemes Manual have also been updated to include references to the reporting obligations on the Form ESA:

• Chapter 02 – Restricted Stock Units (RSU)
• Chapter 04 – Employee Share Purchase Plans (ESPP)
• Chapter 05 – Convertible Shares
• Chapter 06 – Forfeitable Shares
• Chapter 07 – Shares acquired at less than Market Value
• Chapter 08 – Restricted Shares. (This chapter has also been updated to include clarification in relation to the individual’s responsibility to adjust income tax on a self-assessment basis if there is any variation in the restriction.)

Additionally, two new chapters have been added to the Share Schemes manual as follows:

• Chapter 13 – Growth Shares
• Chapter 14 – Cash-Settled Share Awards

Chapter 15 (previously Chapter 13) of the Share Schemes Manual, ‘Share Scheme Reporting’, includes further guidance on filing of the return in section 3.3.

Revenue confirmed that feedback on any of the above updates will be considered and further updates to the Share Schemes manual may follow.

See Revenue eBrief No. 120/21 for further details.