Revenue Note for Guidance

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Revenue Note for Guidance

112B Granting of Vouchers

Summary

This section provides an exemption from tax where an employer provides a small benefit or voucher to an employee where the following conditions are met–

  1. it is not connected to a salary sacrifice arrangement,
  2. it cannot be converted to cash,
  3. the value does not exceed €500, and
  4. only one benefit or voucher can be granted in a tax year.

Details

Definitions

(1) “benefit” means a real asset, but does not include cash.

“qualifying incentive” means a voucher or a benefit that is given to an employee by their employer which meets the following conditions–

  1. the voucher or benefit is not part of a salary sacrifice arrangement;
  2. in relation to a voucher, it can only be used to buy goods or services and cannot be converted into cash;
  3. the value of the benefit or voucher does not exceed €500;
  4. only one benefit or voucher can be given to an employee in a tax year.

“salary sacrifice arrangement” means any arrangement whereby an employee forgoes part of their remuneration in return for the benefit or voucher .

The relief

(2) A qualifying incentive is exempt from income tax and is not classed as income for the Income Tax Acts. As a consequence, it is exempt from USC also and is not liable for PRSI.

Relevant Date: Finance Act 2019