Employee share scheme - guide for employers

Introduction

The tax law contains specific rules about how tax applies to employee share scheme (ESS) interests. These rules apply to shares, stapled securities and rights to acquire them (including options), that have been provided to your employees at a discount under an ESS.

Laws applying from 1 July 2009, changed the tax treatment of an ESS. This guide explains how these law changes apply to ESS interests provided to your employees at a discount.

If ESS interests have not been granted at a discount, the benefits given to your employees may be taxed under other provisions of the tax law, such as capital gains tax.

For more information about capital gains tax, visit Capital gains tax - home.