On Tuesday 19 December, the European Commission approved an Irish scheme to reduce tax on staff share options under EU state aid rules.
The measure will take the form of a tax exemption on the income and social insurance contributions of employees of small and medium-sized enterprises (SMEs) when they exercise their share options.
This regime aims to support these businesses, which do not always have the financial resources to be able to offer attractive pay to qualified staff, which could discourage some people from working for SMEs for the long term and therefore hinder their growth and development.
Through this support, which will be set in place for a period of six years, the companies in question will be able to use share option contracts to offer their employees interesting salary packages and therefore increase their loyalty to the company.
The Commission found that the measure was necessary to help SMEs to keep staff to allow them to make a greater contribution to economic growth and innovation. According to the European institution, it complies with its policy of promoting entrepreneurship and creating a favourable environment for SMEs.
The institution therefore concluded that the scheme complied with EU state aid rules. (Original version in French by Lucas Tripoteau)