Last reviewed: 2026-01-15
Small Benefit Exemption — €1,500 tax-free per employee
Ireland's Small Benefit Exemption (§112B TCA 1997) lets employers give non-cash vouchers or benefits up to €1,500 per employee per year — free of PAYE, PRSI and USC.
Thresholds
| Item | Amount | Note |
|---|---|---|
| Small Benefit Exemption — annual cap per employee | €1500 | Annual aggregate cap of €1,500 (from 1 Jan 2025) covering up to five qualifying non-cash benefits per year. |
| Per single benefit maximum | €1500 | A single benefit may account for the full €1,500. Any benefit issued after the annual cap is fully taxable. |
Conditions
- Benefit must be a non-cash voucher or tangible good (cash and cash-equivalents are excluded).
- Voucher can only be used for goods or services — never redeemable for cash.
- Maximum of five benefits per employee per year qualify under the SBE.
- Salary sacrifice arrangements (foregoing salary to receive the benefit) do NOT qualify.
- Once the €1,500 cap is exceeded, the FULL amount of any subsequent benefit is taxable (BIK), not just the excess.
Sources
- Revenue — Small Benefit Exemption (TDM 05-01-01e) (verified 2026-01-15)
- Section 112B TCA 1997 (Irish Statute Book) (verified 2026-01-15)
- Finance Act 2024 — SBE increase to €1,500 (verified 2026-01-15)
This overview is based on Section 112B TCA 1997 and Revenue TDM 05-01-01e as at 15 Jan 2026. It is not a substitute for tax advice — confirm eligibility with your Revenue advisor or Chartered Tax Consultant.