Finance Act 2020 introduced mandatory electronic reporting for employers of certain share-based remuneration. Revenue eBrief 120/21 which issued on 20 June 2021 announced the release of the new Employer’s Share Awards reporting return (Form ESA) which will be required to be submitted to Revenue annually. The Form ESA is now available on Revenue’s website and the format is very similar to the existing KEEP1, RSS1 and ESS1 electronic returns – a pre-formatted spreadsheet which can be uploaded through ROS. Previously, there was no prescribed format for reporting the above. 

 The new electronic reporting requirements are for the following:

• Restricted Stock Units (RSU’s),
• Restricted shares,
• Convertible shares,
• Forfeitable shares
• Discounted shares
• Growth shares
• Any other award with cash-equivalent of shares

This will assist Revenue in gathering significant detail on the schemes giving them much greater visibility of such schemes as operated by companies and also in monitoring the compliance obligations of employees.

The new reporting requirement will apply from the 2020 tax year onwards.  The statutory deadline for 2020 tax year is 31 August 2021.  For 2021 tax year onwards, the filing deadline will be 31 March following the year in question.  This is in line with the filing deadline for other share scheme information returns (such as the Forms RSS1, ESS1 and KEEP1).

Our Private Client team has significant experience in advising employers and employees in relation to share schemes. Please contact any member of our team if you require advice. 

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