Employment related shares

Unapproved share schemes: convertible securities and Restricted Stock Units

Convertible securities

Your employer might award you a convertible security. A convertible security is a type of share or stock that can be converted into or exchanged for another type of share or stock. 

You must pay Income Tax (IT), Universal Social Charge (USC) and Pay Related Social Insurance (PRSI) on the market value of the securities at the date you received them. The deductions will be made through the Pay as You Earn (PAYE) system.

A further IT charge may also arise if those securities are converted into or exchanged for other securities.

Restricted Stock Units (RSUs)

A RSU is a grant (or promise) to you by your employer. The grant is that, on completion of a 'vesting period', you will receive either:

  • shares in the company
  • the cash equivalent of shares.

You must pay IT, USC and PRSI either on the:

  • market value of these shares at the date of vesting
  • cash payment  (if you receive cash equivalent).

All deductions will be made through the PAYE system.

Next: Unapproved share scheme: Employee Share Purchase Plans