The tax law contains specific rules for the taxation of employee share scheme interests (ESS interests). Where shares, stapled securities and rights to acquire them, have been provided at a discount under an employee share scheme, the discount is taxed under these rules.
Recent legislative amendments have changed the taxation arrangements for employee share schemes and these changes apply from 1 July 2009.
This is a general guide to explain how the new law applies to ESS interests, provided at a discount, under an employee share scheme. Where shares, stapled securities or rights to acquire them have not been granted at a discount, the employee share scheme rules do not apply. However, the benefits given in relation to these interests may be taxed under other provisions of the tax law such as the capital gains tax regime.
The employee share scheme tax laws do not apply if the employee is not provided with ESS interests.
