From 1 April 2026, unlisted New Zealand companies can elect to designate ESS shares as 'employee deferred shares', pushing the employee's tax point to 20 days after a liquidity event (company listing, or the shares being sold, transferred or cancelled) instead of at grant. Employers must notify Inland Revenue within 20 days of issue (employee IRD number, name, issue date, number of shares). The change was enacted in the Taxation (Annual Rates for 2025-26, Compliance Simplification, and Remedial Measures) Act 2026.
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NZ unlisted startups can defer employee share scheme tax to a liquidity event from 1 April 2026
Why this matters for founders
Founders can now offer equity to early hires without triggering a 'tax without cash' bill on illiquid shares, but must opt in per issuance and file the 20-day IRD web message; review share scheme docs and payroll processes before granting after 1 April 2026.
Source: Inland Revenue (IRD)
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