Small Benefit Exemption Scheme - Effective from 2022

Small Benefit Exemption Scheme (Ireland) – Effective from 2022

  • Under the Government’s Small Benefit Tax Exemption policy, businesses can reward their staff up to €1,000 once per year completely TAX FREE.
  • The exemption is only allowable for NON CASH benefits.
  • Directors and employees can claim the Small Benefit Tax Exemption.
  • Sole Traders CANNOT claim the Small Benefit Tax Exemption, but if the sole trader has employees, then the sole trader can provide his/her employees with the benefit.
  • Any NON CASH gift or reward up to the value of €1,000 qualifies for the Small Benefit Tax Exemption, including;
  1. gift cards
  2. vouchers
  3. hampers
  4. theatre and concert tickets
  5. gym membership
  6. spa treatments etc
  • If a single benefit exceeds €1,000 in value, then the full value of that benefit is subject to tax
  • Where two benefits are provided, the combined value of those benefits cannot exceed €1,000
  • The cost of the benefit to the business or company is an allowable expenses for tax purposes
  • There are no filing obligations required to be submitted to revenue


Further information;


Contact us today

Richard Greally, FCCA, AITI (CTA) Chartered Tax Advisor, B.Sc Mgmt, Diploma in Tax, Cert in Capital Taxes for Private Clients, Cert in Business Studies


Legal Disclaimer:  This blog is intended to describe the subject in general terms. As such, it does not attempt to cover every issue which may arise in relation to the subject. It does not purport to be a legal interpretation of the statutory provisions and consequently, responsibility cannot be accepted for any liability incurred or loss suffered as a result of relying on any matter published herein

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