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Free use of assets (other than accommodation, company cars or vans)

You may provide your employee with free use of your assets, other than accommodation, company cars or vans. If you do, they will have to pay Pay As You Earn (PAYE), Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) on that benefit.

Calculation of benefit

The annual value of the benefit is calculated at 5% of the market value of the asset. The value starts from when you first provided it to your current employee or to any other employee. Any payment that your employee makes reduces the value of the benefit.

  • Example

    Five years ago your company purchased a painting for €5,000. Your company then gave the painting to your managing director to be displayed at his home. The value of the benefit is €5,000 @ 5% = €250. Your managing director must pay tax on this €250.

    The painting is now worth €8,000. The calculation of the benefit is still based on the original cost of the painting. If you gave the painting to another employee the calculation would also still be based on the original cost.

You must treat all running costs that you pay as a taxable benefit. Any payments that your employee makes towards these costs reduces the amount of the benefit that will be taxed.

If you provide the asset free for only part of the year, you must base your calculation for that portion of the year.

Free use of 'lands'

From 2005, the method for calculating the free use of lands is the same as for premises.

Loan of art objects

Art objects may be loaned without paying tax, in one specific circumstance. They must be kept in a building of significance, where Revenue agree that the public have reasonable access to view the object and the building.

Published: 18 May 2017 Print this page

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