Overview of Equity Awards via Clog
A restricted share or “clog” arrangement provides a tax efficient means of rewarding employees who receive free or discounted shares from their employer. Normally, the value of the shares (or the discount) is a taxable benefit in kind giving rise to income tax, USC and employee PRSI. By applying restrictions on the disposal of the shares for one or more years after the date they are acquired, the taxable value is reduced by 10% per year of restriction, up to a maximum of 60%, which is a significant saving for the employee.
For further information contact Rosaleen Boyle, Senior Advisor or any member of the A&L Goodbody Incentives team.
Date published: 6 March 2020