Minister for Finance – Update on Finance Bill 2015 Small Benefits Exemption

20.11.15

Speaking after the Committee Stage of Finance Bill 2015, Minister for Finance Michael Noonan said:

“In my Finance Bill speech I announced that an employer may provide an employee with a single annual non-cash benefit to a maximum of €500 without applying PAYE, PRSI and USC to that benefit.

This week I brought forward a Committee Stage Amendment that now allows the measure to apply from date of publication of the Finance Bill, 22nd October 2015. I have been informed by the Revenue Commissioners that this change is now being applied on an administrative basis pending the enactment of the Finance Bill. The Amendment also ensures the exemption covers either a voucher or a small non cash benefit”.

Ends

20 November 2015

Notes for editors:

This measure, as modified, allows an exemption from Income Tax, PRSI and USC to an individual where an employer gives that employee a small benefit or voucher in a year of assessment.

There are some restrictions and they are as follows:

  • The benefit or voucher cannot exceed €500 in value.
  • It cannot be exchanged in part or in full for cash.
  • It cannot be part of any salary sacrifice arrangement between the employee and employer.
  • Only one benefit or voucher per employee may be given in any one year.

 

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