The exercise of a share option, or other rights, is subject to Irish income tax. The application was extended to options or rights obtained even though the person was not resident in Ireland at the time of the granting of the rights. This amendment was subject to a Ministerial Order. It has come into operation with effect from 5 April 2007.

Prior to 5 April 2007, the exercise of an option was not subject to Irish income tax if the option had been granted while the person was resident outside of Ireland, even though the person was Irish resident at the time of exercise of the option.

Where a right is obtained on or after 5 April 2007, the exercise of the right by an Irish resident person is subject to Irish income tax irrespective of whether the person was resident when the right was obtained.

The amendment is included in s.16 FA 2005. It had been provided that the section would come into operation by Ministerial Order. The Ministerial Order (SI 170/2007) was signed on 5 April 2007.