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Taxation of benefit in kind

  1. Overview
  2. Estimating the value of benefits
  3. Applying tax to benefits
  4. Insufficient wages to deduct tax
  5. Spreading tax over the year
  6. Payment of employee tax by the employer

Spreading tax over the year

You must pay Income Tax, Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) to the Collector-General on a benefit in kind. This tax must be paid for the pay period in which you provided the benefit.

Deducting the tax in one pay period may cause an employee hardship. If it does, you may spread the tax due on an employee's benefit over several pay periods in the year. You must still pay the full Income Tax, PRSI and USC due to the Collector-General in the period the benefit arises.

The annual value of a benefit is spread over the pay periods in which the benefit arises for:

Income Tax, PRSI and USC can be calculated on the benefit for each pay period.

Next: Payment of employee tax by the employer

Published: 01 October 2024 Print this page

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