Examinations, courses and professional subscriptions
Course or exam fees
You may pay course and exam fees for your employees, or repay them for the fees they have already paid. This is not a taxable benefit if the course or exam is relevant to your business.
A course is relevant to your business if it:
- allows your employees to gain knowledge necessary for their role
- and
- helps your employees perform their current or future work duties better.
You may choose to pay for a course for an employee where the course is not relevant to your business. If you do, this is a taxable benefit. Where this happens your employee must pay the following on the cost of the course:
Other exam expenses
A cash award made to an employee in recognition of passing an examination or acquiring a qualification is a taxable payment.
If you make a payment to reimburse your employee’s purchase of technological equipment, the payment is regarded as a taxable payment. PAYE, PRSI and USC must be applied on the value of the benefit.
Payment of certain expenses which were incurred while studying for and sitting an examination may be made without the deduction of tax. However, all of the following conditions must be met:
- the course/qualification must bear some relationship to the employees duties
- the amount paid is only a reimbursement of the expenses incurred
- the payments can be vouched to receipts
- and
- appropriate governance and control mechanisms are in operation together with supporting documentation.
Allowable expenses include the cost of course materials other than those provided as part of the course fees and certain travel expenses.
Examination awards
You may pay exam awards to your employees. This payment is generally taxable. Your employee must pay PAYE, PRSI and USC on the value of the award. The only exception to this is if the award is a repayment of qualifying expenses.
Special increments
You may give your employees a special pay increment for passing an examination or to recognise another achievement. Any increase in pay is taxable. Your employee must pay PAYE, PRSI and USC on the amount paid.
Professional subscriptions
If you pay a subscription to a professional body for your employees, that payment is generally taxable. However, in limited and restricted circumstances, you may pay professional subscriptions without deduction of tax.
You can pay professional subscriptions for an employee without deduction of tax where there is a legal requirement for your employee to either:
- be a member of a professional body
- or
- hold a practising certificate or licence.
You can also pay the subscription without deduction of tax where:
- the duties of your employee require them to either:
- be a member of a professional body
- or
- hold a practising certificate or licence
- and
- your employee cannot complete their duties without that membership or certificate.