Press release
Consultation process on Key Employee Engagement programme (KEEP)
Published on
Last updated on
Published on
Last updated on
As part of the preparations for Budget 2023 and Finance Bill 2022, the Tax Division of the Department of Finance is undertaking a short written stakeholder consultation process on the Key Employee Engagement programme (KEEP).
KEEP is a tax incentive for SMEs to support the use of share options as a form of staff remuneration. It is subject to a sunset clause and is currently due to expire on 31 December 2023 (this is in accordance with normal practice for tax expenditure measures which fall to be reviewed, usually every three years).
The aim is to have a scheme in place which successfully supports the objective of allowing smaller firms to compete with larger firms when it comes to the hiring and retention of staff. KEEP should compare favourably with approaches in this area taken by our international peers; it should also achieve its objectives in a cost effective manner from an Exchequer perspective.
Stakeholders are invited to comment on the operation of KEEP as it currently stands and on the expected impacts of changes made to the scheme in Finance Act 2019. Respondents are also asked to submit proposals for further improvements to the scheme.
Written submissions in response to the consultation documents should be provided to the Department of Finance in the manner set out in the documents by close of business on Friday, 17 June 2022.