S.I. No. 638 of 2017

Print page

S.I. No. 638 of 2017




(This note is not part of the Instrument and does not purport to be a legal interpretation.)


This Commencement Order brings section 3 of the Social Welfare Act 2017 into effect as and from 1 January 2018.


Section 3 of the Social Welfare Act 2017 provides for an amendment to the definition of the term “share-based remuneration” in section 2(1) of the Social Welfare Consolidation Act 2005 to cater for the introduction of a new tax relief, the Key Employee Engagement Programme (KEEP).


The objective of the KEEP programme which was announced in Budget 2018 and is provided for in the Finance Act 2017 is to support small and medium enterprises in Ireland in competing with larger enterprises in the recruitment and retention of key employees. Under the KEEP measure the value of the benefit of share options will be subject to tax (Capital Gains Tax) only when the employee disposes of the shares.


Section 3 of the Social Welfare Act 2017 provides that gains realised on the exercise of a share option under the KEEP programme by employees of qualifying small to medium enterprises will not be subject to PRSI.

Last modified:17/01/2018