Valuation of benefits

Small Benefit Exemption

From 1 January 2025, you can give employees up to five small benefits, tax-free, each year. These benefits must not be in cash and the combined value of the five benefits cannot exceed €1,500. If more than five benefits are given in a year, only the first five benefits may qualify for the tax exemption. Unused allowance amounts cannot be carried over.

Note

A single benefit of up to €1,500 may be provided to an employee tax-free. If a single benefit exceeds €1,500 in value, the full value of that benefit is subject to tax. Where up to five benefits are provided, the combined value of those benefits cannot exceed €1,500.

The face value of a voucher is generally the value of the benefit. However, you may incur minor fees or postage charges when purchasing vouchers for your employees. Revenue will not consider such nominal costs in the context of the small benefit exemption threshold. However, where the conditions of the small benefit exemption are not met, these costs must be included when calculating the benefit value for tax purposes.

To qualify for tax-free treatment, the vouchers or benefits must be of a type that can be used only to purchase goods or services. Where they can be redeemed in full or in part for cash, they do not qualify for the small benefit exemption.

Information on the amount and value of small benefits that could be paid tax-free prior to 2025, is detailed in Tax and Duty Manual Part 05-01-01e.

Reporting requirements

You must report details of the date paid and value of this benefit to Revenue. For further information, please see Enhanced reporting requirements.

Next: Specific valuation rules