10.1 Company Shares
Where shares in a company are given by the company
to an employee free of charge or at a discounted price
or under a share scheme, the employee is chargeable
to tax on the benefit accruing to him or her. However,
PAYE and PRSI do not apply. Instead, the benefit must
be returned on the employee’s return of income form.
The employer must also make a return of the
benefit on form SO2 or form P11D, whichever is
appropriate, by the appropriate due date.