Travel Pass or TaxSaver Commuter Ticket Scheme
As an incentive to encourage the use of public transport, legislation was introduced in the Finance Act 1999 which allowed an employer to incur the expense of providing an employee with a monthly or annual bus/rail pass, without the employee being liable for benefit-in-kind taxation. This has become known as the Travel Pass or TaxSaver Commuter Ticket Scheme. Tax relief on public transport expenditure is not administered by the Revenue Commissioners but is instead operated by transport companies (public and private operators) and employers.
The scheme involves employers providing employees or directors with public transport tickets while saving on employer PRSI payments. Employees participating in the scheme benefit from reduced tax and PRSI payments. Employees receive tickets either as part of their salary package (salary sacrifice) or in lieu of an annual bonus. Savings arise because tickets are not subject to tax or PRSI and benefit-in-kind does not apply.
Further information is set out in the Benefit-in-Kind Guide under Bus, Train or Ferry Passes on the Revenue website.
A number of public transport companies include further information on their websites. Alternatively, there is further information on www.taxsaver.ie
.