The Department of Inland Revenue has released an officials' issues paper Taxation of employee share schemes: start-up companies.

IRD is seeking feedback on proposed deferral rules for taxing employee share schemes offered by start-up companies.

The proposal would provide the ability to defer the taxation point for employees of start-up companies (with a corresponding deferral of the company’s deduction).

The paper expands on a proposal raised in an officials’ issues paper released for public feedback in May 2016. IRD says the purpose of the latest paper is to provide more detail on a possible deferral regime, and determine through consultation whether a fair deferral regime can be developed.

Submissions on the consultation document close on 12 July 2017.