Food and entertainment

Different rules apply depending on the circumstances in which food and entertainment is provided by the employer.

Canteen meals

You may provide free or subsidised meals in staff canteens for all your employees. If this facility is made available to all your employees, these meals are not a taxable Benefit In Kind (BIK). Meals must be provided in a staff canteen, subject to the treatment outlined below. This does not include external third-party restaurants, cafés or similar establishments.

If the canteen is only available to certain employees, the meals that you provide are taxable benefits, subject to the treatment outlined below.

Staff meals on the employer premises

If you provide meals on your business premises, a taxable BIK will not arise where the following conditions are met:

  • the meals are available to all staff
  • and 
  • the meals are consumed on your business premises.

The above applies from 1 October 2025.

If the meals are not available to all staff a taxable BIK charge will arise. This treatment applies unless the conditions for “working lunch” listed below are met.

Working Lunch

Meals that you provide to a cohort of your staff are generally taxable benefits.

However, a taxable BIK will not arise where the following conditions are met:

  • A specific operational requirement exists (e.g., a meeting where lunch is provided to avoid staff having to leave, staff working after normal hours, etc.)
  • the meals are consumed on the employer's premises
  • and
  • the cost per employee does not exceed the civil service daily subsistence rate (5 hours or more but less than 10 hours). The rate is currently €19.25 per employee per working day.

The above applies from 1 October 2025.

Where the conditions are not met, including where the daily limit is exceeded, a BIK charge to tax will arise.

Please see TDM Part 05-01-01o for further guidance, including examples of scenarios where a charge to BIK will not arise.

For information on the domestic civil service rates please see Civil service rates.

Charge to tax as a benefit in kind 

Where a charge to tax arises, your employees are chargeable on the benefit under the Pay As You Earn (PAYE) system to:

To calculate the taxable value of the benefit for each employee, you must:

  • divide the costs between your employees who availed of the meals
  • and
  • do not include any employee who does not avail of the meals.

Meal vouchers

Where meal vouchers are provided to your employees, these vouchers are a taxable BIK. They must pay Income Tax, PRSI and USC on the face value of the benefit. The value of the benefit is the face value of the voucher. 

Client entertainment expenses

Your employee may have to pay for business entertainment expenses to perform the duties of their employment with you. You may repay them for vouched expenses of this nature. Repaying this type of entertainment expenses is not a taxable BIK.

Seasonal parties and other inclusive events

You may decide to provide seasonal parties, special occasion meals or other inclusive events such as sports days, for your employees. The cost of these events are not taxable BIKs, provided the expenses are reasonable and the events are available to all employees.