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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

ItemAmountNote
Small Benefit Exemption, annual cap per employee€1500Annual aggregate cap of €1,500 (from 1 Jan 2025) covering up to five qualifying non-cash benefits per year.
Per single benefit maximum€1500A 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

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.

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