Taxation of benefit-in-kind

Estimating the value of benefits

You must deduct tax on the value of benefits you provide to employees. Valuation of benefits describes how different types of benefits are valued.

If you know a benefit's value

If you know how much a benefit is worth, you must calculate tax on the actual value of the benefit.

If you do not know a benefit's value

If you do not know how much a benefit is worth, you must calculate tax on its estimated value. This should be the best estimate, from a common sense point of view. Please refer to Valuation of Benefits for guidelines on how benefits are generally taxed.

You must include a best estimate of the value in the relevant payroll submission to Revenue. When the actual value of the benefit becomes available, you must include any adjustment in the next payroll submission.

Some taxable benefits have special rules. These are:

Next: Applying tax to benefits