Employers can give employees a small benefit of up to €500 in value, TAX FREE, each year.
- The gift must NOT be in cash.
- The gift must not exceed €500 in value.
- Tax-free vouchers or benefits can be used only to purchase goods or services. Examples include; Shop Local vouchers, Supermarket vouchers, Fuel vouchers
- The employee cannot exchange the gift voucher in-part or in-full for cash.
- The employer can only make one such gift during the year.
If the gift doesn’t meet the above criteria, then Tax, USC and PRSI must be operated on the value of the benefit by the employer.
For further guidance please see Revenue Small Benefit Exemption
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