Financial Resolution No. 30 gives statutory effect to the budget announcement that the taxation of an employee's emoluments in the form of shares or stocks would be brought within the PAYE collection system. Where an employee does not pay full market value for shares, the shares are treated as perquisites for income tax purposes and taxed at remuneration of the employment. However, unlike other types of remuneration the income tax charged on the value of such shares is paid through the self-assessment system and not through the PAYE system. This resolution brings the payment and collection of income tax and share rewards into the PAYE system and aligns the tax treatment with that of other types of benefits-in-kind received by employees. This measure will not increase the amount of income tax charged but may, depending on when shares are received, result in earlier payment of tax. In the case of employees, the payment of PRSI is linked to whatever remuneration is payable through the PAYE system. In addition, this resolution will bring the share rewards within the charge of PRSI.

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