Country guide

Tax-free employee gift cards in Ireland

Irish employers can give each employee up to five non-cash benefits per year, with a combined annual value of up to €1,500, free of Income Tax, USC and PRSI under the Small Benefit Exemption.

Author
gift.cards Editorial
Editorial team, gift.cards
Reviewed by
External counsel — review pending
Last reviewed
24 June 2026
Small Benefit Exemption (TCA 1997 s.112B, as amended by Finance Act 2024)

This page is general information based on published rules and was last reviewed on the date shown. It is not tax advice — confirm with your accountant or tax counsel for your specific situation.

The rule in plain language

  • Combined annual cap: €1,500 per employee per tax year, across all qualifying small benefits.
  • Maximum five benefits per employee per year. Benefits beyond the fifth are fully taxable, even if the €1,500 cap has not been reached.
  • Only the first €1,500 in aggregate counts towards the exemption — once the cap is exceeded, the excess is fully subject to PAYE, USC and PRSI.
  • The benefit must be a non-cash voucher or tangible item. It cannot be exchangeable for cash and cannot be part of a salary sacrifice arrangement.
  • The Finance Act 2024 increased the cap from €1,000 to €1,500 and the maximum number of benefits from two to five, effective from 1 January 2025.

Conditions to qualify

  • ✓Non-cash benefit (voucher or tangible item), not exchangeable for cash.
  • ✓No more than five qualifying benefits per employee per tax year.
  • ✓Cumulative annual value at or below €1,500 per employee.
  • ✓Not part of a salary sacrifice or any arrangement to convert cash pay into vouchers.

Recognised occasions

  • Christmas / end-of-year
  • Birthday
  • Service anniversary
  • Recognition unrelated to performance
  • Any other occasion (within the five-benefits-per-year limit)

Client gifts

The Small Benefit Exemption applies only to employees and directors. Gifts to clients fall under general corporate-tax rules — generally treated as entertainment expenditure under TCA 1997 s.840, which is not deductible for Corporation Tax purposes.

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Is this tax-free?

Estimated treatment
Likely tax-free

Likely covered by the Irish Small Benefit Exemption — exempt from Income Tax, USC and PRSI.

  • •Maximum five qualifying benefits per employee per tax year; a sixth voucher is fully taxable even if the €1,500 cap is not reached.
  • •Voucher must be non-cash and not granted under a salary sacrifice arrangement.
  • •This estimator gives general information based on published rules. It is not tax advice — confirm with your accountant for your specific situation.

Not tax advice — see the country page for the full rule and sources.

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Primary sources

Frequently asked

Small Benefit Exemption (TCA 1997 s.112B, as amended by Finance Act 2024)

Can I give one €1,500 voucher instead of five smaller ones?

Yes. There is no minimum number of vouchers — the limits are a ceiling on count (five) and value (€1,500 combined). A single €1,500 voucher uses one of the five slots.

What happens if I give a sixth €100 voucher in the same year?

The sixth voucher is fully taxable through payroll as a benefit-in-kind, even if the €1,500 cap has not been reached.

Does the exemption apply to performance bonuses paid as vouchers?

Yes, provided the voucher is non-cash, is not paid under a salary sacrifice arrangement, and the count/value caps are respected. Cash bonuses converted into vouchers under salary sacrifice are excluded.

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