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Tax Free – Christmas Bonus

Small Benefit Exemption

You can give employees a small benefit of up to €500 in value, tax free, each year. This benefit must not be in cash. 

If more than one benefit is given in a year, only the first one qualifies for tax free status. Unused allowance amounts cannot be carried over.

Tax-free vouchers or benefits can be used only to purchase goods or services. They cannot be redeemed for cash.

Note

If a benefit exceeds €500 in value, the full value of that benefit is subject to tax.

https://www.revenue.ie/en/employing-people/benefit-in-kind-for-employers/valuation-of-benefits/small-benefit-exemption.aspx

McMahon & Co
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