The Finance Bill 2015, provides for the introduction of a new statutory tax exemption for a voucher or benefit (a tangible asset other than cash) provided by an employer to an employee, subject to the following conditions: 

• Only one qualifying voucher or benefit can be given to an employee per tax year,
• The voucher or benefit cannot exceed €500 in value,
• It cannot be exchanged in full or part for cash, and
• The voucher or benefit cannot form part of a salary sacrifice arrangement (i.e. the employee is not permitted to surrender part of his remuneration due under his contract of employment in return for a tax free voucher or benefit). 

Where the above conditions are met, the voucher or benefit can be given to the employee free of PAYE, PRSI and USC.

This exemption, which replaces the small benefit exemption, is effective from the date of publication of the Finance Bill, 22nd October 2015. Revenue has confirmed that this change will be applied on an administrative basis pending the enactment of the Finance Bill 2015.

Revenue has also confirmed that the small benefit exemption may only be applied once in a tax year. Therefore, where an employee has already availed of the small benefit exemption up to a maximum value of €250 prior to 22nd October 2015, the employee has no further entitlement following the introduction of the increased limit of €500 since 22nd October 2015.

If you have any queries on this exemption don't hesitate to contact us on 021 4641400 or email info@quintas.ie